Significance and Functions of Board of Directors

According to a research study conducted by PwC, “Ninety-one percent of directors find new members through director recommendations, suggesting a preference for referrals by someone they know and trust. However, 67% use search firms.”

The constitution of company is never complete without a Board of Directors. At the start, it can be a single person – the lone founder – who represents the board. But it cannot go on like this for long as you will not be able to avail the benefits that are associated with having a board.

A board of directors plays an indispensable role in constitution and governance of most enterprises. The board is responsible for the firm's financial decisions and ensures smooth running for different legal procedures. The board has the authority to select, compensate and replace key executives, when necessary.

The major functions of boards members include:

·         Analyzing and facilitating corporate strategy and major plans of action

·         Reviewing and guiding annual budgets, business plans and  risk policy

·         Setting performance objectives & ensuring their execution

·         Monitoring corporate performance

·         Overseeing major capital expenditures, divestitures and acquisitions

A nominating entity – usually the founder – first nominates the members for the Board of Directors. The nominated members are then elected by shareholders through voting. It is important to select experienced and responsible board members who can contribute efficiently in the growth of the company.

If you are looking for some effective guidance on selecting the right set of board members, you can seek some useful advice from CEO peer groups. The stalwarts and industry leaders from non-competitive organizations meet at a CEO conference and share their experiences and knowledge with a candid, honest, no-holds-barred approach.

CEO groups act as a great platform for aspiring entrepreneurs to seek help and counseling to build a successful business entity.

In this blog I have discussed the importance and functions of a Board of Members. In my next blog I will suggest some tips that you should consider while nominating directors for your enterprise. Watch this space!

Pick the Right Cherry When it Comes to PR Agency

It is in continuation of my previous blog “Picking the Perfect PR Agency”.  Here are some more tips to be considered while asking for the services of a creative agency. 

Request a proposal

You can ask the different advertising agencies for a proposal, action or PR plan, for your project. It can give you an idea about the strength and reach of the agency. You can demand credentials such as sample press releases and case studies to have a feel of the style of writing and promotional strategies.

 Team Strength

It is very essential to access the expertise and strength of a complete PR and creative team, which will be showcasing and promoting your products to the potential customers. In a team, usually senior consultants are responsible for doing pitches and presentations. These are the mid level managers who take care of your account. So make sure, you have a seamless communication with the professionals involved in your project.

 Bang for the Buck

As an entrepreneur, you should know exactly what benefits or returns you should be anticipating in lieu of the money you are pumping into an ad campaign or marketing project. Be very sure of your budget before hiring a branding agency. It may happen that your PR consulting company charges some unnecessary fees while handling your branding exercise.

The PR agency, apart from narrating your story to the press, also designs, writes, and positions your brand image to woo your target audience. It is also responsible for handling crises and building your reputation. Keep a track on the events during the course of your marketing and brand building campaign and make sure it is worth your every penny spent.

CEO Peer Groups

Experience is the greatest learning.

Benefit from the experiences of industry leaders at a corporate executive coaching and get some smart guidance on how to pick the perfect PR agency out of the scores of PR companies around. AT a CEO peer group or CEO club, you can also come to know the contacts of some good advertising agencies that have proved their worth in projects they have handled.

Picking the Perfect PR Agency

A Public Relations (PR) agency acts as an efficient medium to reach mass audiences and expand the reach of your products and services.

The process of managing communications is as significant as communications themselves, which makes the role of PR agencies vital. Be it be your own PR staff or an outside agency, they have an inevitable influence on your organization's reputation, growth, corporate identity, branding and overall success. 

With so many reputed PR companies around, choosing one that suits both your brand and budget is like finding a needle in a haystack. 

The following tips can help:

Research

Make sure you have done your homework before zeroing on a final branding agency. Do a thorough market research about all reputed advertising agencies and choose the one that meets your needs.

Experience & Skills

Be very particular about the experience and the projects handled by the PR Company!

How much value did the PR agency added to its previous projects? What are is the level of expertise and skills of the agency? How well do they meet deadlines and handle pressure?

These are questions you should have answers for when you consider hiring a PR agency for your projects.   

Reputation

The market reputation of a PR company speaks volumes about its credibility and efficiency. Consider the “word of mouth” for the company. If people say good things about the agency, there must be something good in it.

Social media

Enquire about the channels that the PR Company has the access to for promoting your company or the brand. Go through the agency’s website and blog posts to ensure if they are present at social media channels such as Facebook and Twitter. Being the talk of the town and presence in headlines, always work when it comes to promotion.

Seek assistance at CEO Conference

A leadership conference is a useful forum where you can get some tips for choosing the right communications and PR agency for you.

 A management conference or CEO peer group combines the experiences of stalwarts from non-competitive organization under one roof allowing you to get insights into the basics of product marketing. 

Take the opinion of CEO peers and share your ideas in your CEO peer group to get practical advice on the best PR strategies you can employ.

We will be discussing some more points in our next blog. Watch this space!

Realize the Importance of Business Ethics

In the present world, every organization requires a code of conduct or business ethics to have an identity of its own. A business code of conduct clearly defines organizational value system and the behavioral guidelines for the people who are associated with the organization.

Implementation of business code of ethics – establishing a set of core values and behavior for staff – boosts organization’s corporate governance efforts. It helps staff stay aware of the right course of action; hazards of following unethical behavior pattern; and the hierarchy for the flow of information.

Business ethics defines core values to maintain a harmony in the organization. Since business ethics represents the company’s stand towards corporate social responsibility, the reputation of the organization also depends on it.

Here are some ways that can help a CEO establish business ethics in his organization:

Prepare the Policy Document

The management should ensure that there is a detailed structure of the ethics program clearly mentioning the code of conduct for employees. The business ethics should include additional policies that address diversity, sexual harassment, workplace aggression, equal opportunity at all.

Design Implementation Strategies

The success of a program depends on implementation strategies. It is the responsibility of Human Resources (HR) department to ensure that code of conduct is mentioned in the appointment letters so that new joiners know the importance of business ethics.

It is a good practice to display the business ethics on notice boards, entrances or other preferred sites. HR should also conduct workshops, quizzes and training session to make sure that employees are aware of business ethics. Business ethical issues should be dealt strictly and serious action should be taken against the defaulters to set the example.

Training & Awareness

Communication is the most effective technique to implement the Code of Conduct successfully. There are number of ways to ensure that staff and external stakeholders are aware of business ethics and are following it.

A few are listed below:

•  Design and develop class room training material including PPT presentations, handbooks, teaching  manuals and illustrations for educating the employees on the detailed policies.

•   Take the help of questionnaires, ethical tests, and case studies to check if your staff cares about the     business ethics.

• Publish relevant cases of ethical dilemmas on the intranet

• Make sure the business ethics doc is available on intranet and every staff member has an access to it.

• Let your staff know how much you are serious about the business ethics by circulating the information if someone is terminated for misbehavior.

If you are looking for detailed guidance about drafting and implementation of business ethics for your enterprise, executive coaching can help you. CEO club offers executive business coaching on how to run your business operations smoothly. Apart from guiding you on business ethics, a CEO group provides you practical solutions for different business issues.

Take Advantage of Social Media For Your Business

Over the past decade, the way people communicate and connect with each other has changed radically thanks to social networking platforms.

No business owner or a serious marketer can overlook the importance of the web. Social networking sites such as Facebook, Linkedin, Twitter and the newly launched Google+ are the top most platforms for creating a buzz about your products, services, events or announcements.

Unfortunately, many business owners fail to take proper advantage of such mediums. Creating a strong online presence for your brand or business, you would have to be visible on social media sites. The biggest advantage of a social media site is that it connects you to your target audience directly- potential customers, shareholders, and rival companies.

You can post comments on Facebook, post tweets and re-tweet on Twitter, or start a discussion on any of the sites. In real time, you are able to get in touch with potential customers, understand what they are looking for, present them solutions in the form of your products or services, find out if any of your customers are unhappy with your products and respond to customer queries.

Using social networking sites for business purpose is cost-effective. Not only does it help you attract new customers and keep in touch with the existing clients, you also can hire new employees. You can even recruit potential candidates by posting job vacancies in your company on Twitter or Linkedin accounts.

You will be amazed to receive a good number of responses in real quick time. You don't have spend money on recruitment consultants. A job post on Linkedin social networking site where qualified professionals are always on the lookout for good opportunities is a good source for hunting for skillful and talented people.

Social media has changed the way people read, discover, and share information, and news. You just need to use your corporate business skills to take advantage of social media and launch a successful marketing campaign.

Apart from social media, you also have to look out other avenues to improve yourself and upgrade your knowledge. As a business owner, you need to keep updating yourself to stay ahead of the competition. Joining an executive business coaching or a corporate business coaching can help you get in touch with experts, share ideas and learn innovative ways to take your business to new heights.

Make sure the language you use on the social networking sites is simple and appealing to your particular target audience and captures the ethos of your firm. For instance, on Twitter you can use casual language whereas on Linkedin, your style of writing needs to be professional and business like, so post your content accordingly.