Naming A Board
The ideal board of directors for any company will represent a wide range of experience, knowledge and diversity. Board members are ready to be called upon for advice and insight and are able to evolve as the business climate changes. What are some things you can do to establish an efficient board of directors?
First, have a road map. It’s helpful to know where you’re headed before inviting friends along for the ride, says an article at SmallBusinessNotes.com. “Before a single person is nominated to a board of directors, the board’s institutional structure should be documented in a set of written bylaws,” the article states. Ideally, bylaws should aid management in the development of business plans, policy objectives and business strategy.
Keep ideas fresh. The bylaws should also include term limits for board members, experts say. In an article by Tim Donnelly at Inc.com, entrepreneur Will Herman recommends establishing a standard board tenure to help keep a fresh perspective.”Within four years, the CEO has tapped 90 percent of the applicable knowledge of the board members,” he says. The goal is to be continuously grooming new business leaders and harvesting ideas for your firm.
Pay attention to the small stuff. The absence of efficient committees can mean your board isn’t functioning as well as it could. From this fundamental core comes many big ideas and its impact should not be overlooked. “Most of the work that supports and implements (the board’s) decision-making occurs at the committee level,” points out an article by Frank Martinelli at CreateYourFuture.com. Boards of directors, then, may only be as strong as their weakest committee.
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