Situation: A private company has a Board of Directors that functions more as an Advisory Board than a traditional Board. For example, they do not have the power to fire or replace the CEO. The CEO wants feedback on how to interact with the Board, and how to work with them between meetings. How do you make the best use of your Board?
Advice from the CEOs:
- Decide what you want from the Board, and clearly communicate this to the Members.
- Treat the Board as a single entity – not as individuals. Avoid politicking individual members between meetings. Use the Board to drive decisions.
- At your next Board meeting have a discussion with the Board:
- Let the members know that you are concerned about whether you are using them effectively as a resource.
- Lay out strategic elements to be dealt with over next period, and ask for their advice.
- For example, if you are moving into a new market you need advice on how to succeed. Are they the right group to provide this advice? If not, what other expertise should be added to the Board?
- Consider having this conversation in a special session of the Board.
- Bring in expertise – if your industry has shifted, adjust the make-up of the Board to reflect the new realities. If you need to raise capital, look for expertise in this area.
- Eliminate less productive members from the Board.
- If you are looking at a new market, build an Advisory Board that is knowledgeable about this space, but who are not necessarily customers. Consider retired executives from companies in this market.
- Additional needs that you might want to address either through your Board or an Advisory Board:
- Financial expertise in new markets.
- Where should you partner to make a complete offering or to supplement your offering?
- Another CEO has a similar Board situation. In this case, the CEO makes it clear that Board members are expected to:
- Make connections.
- Assist in bringing in business.
- Members are expected either to produce or they are off the Board.
- Meetings are driven to a specific agenda with expectations of deliverables.