Many companies – particularly early-stage ones – either don’t have a Board of Directors or they are seen as little more than a legal necessity. But it can be so much more and especially as the business starts to scale up a good BOD can often be of great value.
Here is an awesome post from Matthew Falls of Growthers – Getting The Most Out Of Your BoardOF Directors. It should be a must read for every CEO , entrepreneur or business owner looking to get more out of their BOD. These are a few of the key pointers that stood out for me.
- Organize a small working board
- Avoid celebrities
- Have a majority of independent or outside directors
- Facilitate Contact Between Board Members and Management
- Keep your lawyers, accountants, investment bankers, commercial banks, business partners and, if possible, your investors off of the board.
- Companies that do not compensate board members for their contributions end up with ‘charity boards’.
- Subject your team and yourself to board oversight and the chances of succeeding with your company will go up sharply.