A high quality, dynamic boards of directors is critical to a high-growth company. A carefully selected board of directors provides the experience you need to help you set the right course and make quick and accurate decisions.
It can inspire new direction, solve problems and promote the company at the highest levels of the business community.
The most difficult aspect of assembling a board is finding members who can contribute and communicate with the company. It's a unique board member who can be highly critical of the company while offering new ideas and providing solutions. Select board members who know our business and are willing to be very active. Research each member just as we would a senior executive of the company. Ask selected candidates to commit to extra meetings as part of the board membership.
Try to recruit industry experts who know your business and know your customers, as well as what works and what doesn't in developing sound customer relationships. Your industry experts can help us predict trends, develop business strategies and provide contacts for sales and technology partners.
In addition to their role at your company make sure your board members sit on boards for other relevant companies. Their shared knowledge and experience is a wealth of information, strategies, contacts and intuition you can draw on. They will provide you with a wide range of knowledge on which you can build sound business practices, technical superiority and a broad customer base.
Preferably select directors who are current or former executives or partners in highly successful companies. Make sure you also sit on board of directors of other companies
Strong boards give a company credibility. Your board members should have earned the label "expert" before they join your company. Because they're highly respected in their industries, they will provide the validation a business needs to succeed.
Ask the question; if you company is ever acquired by another company, would the buyer keep the board intact as part of the acquisition. If the answer is yes, you have the right board
The biggest barrier to a well-leveraged board is streamlined, limited communication. Members find it very difficult to provide insight if they can't keep up with the changes in the company. At every quarterly meeting, the founder should prepare the following documents for members to examine:
- Complete financials
- Current and future critical initiatives driving the business and how they impact its success
- Strategic issues and changes within the business
- Current customer and partner lists
- Forecast list of new customer opportunities.
What really makes it all work is keeping your board members informed! Communication with both directors is crucial at all stages in a company's life.