Building your board

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Building your boardA PRIMER FOR NEW VENTURE COMPANIES

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Why you want a board now

Starting with a great board can help you to guide your business through many of the potential barriers and road blocks to success.

Think of it as having a group of people who will

celebrate your successes,

watch out for dangers ahead,

point out existing flaws and

help you find solutions

These are people who will

care about your success as much as you

Be objective when you cannot


How do I build my board?

Here are three ways to find potential board members:

Find a consultant to help you identify qualifications, locate members, interview them and select them.

Network and use this network to locate potential members, invite them to speak with you about this opportunity and select,

Join an organization that provides this opportunity (Vistage, YPO or others)


How do I start?

Begin small: three to five people to review your quarterly results and discuss your issues. ( Include yourself, odd numbers prevent ties in voting)

Consider what background you want to include; where are you weak?

Consider the benefits you will give board members; Equity? Compensation? Purely Volunteer?

Interview your potential members; make sure you can get along and they will get along with each other. Look for people who can offer options and discussions of options that help you make the choices.


Board management

Set your dates for the year.

Send out monthly reports along with reminders about the meeting dates, times and location.

Set an agenda with board input about 1-2 weeks prior to your meeting.

Be efficient in your meeting.

Prepare your remarks and have back up information that you can share.

Send out readings prior to the meeting but have copies at the meeting.

Follow your agenda and be efficient with the use of their time.

Bring items that you need advice on.

NOTE!! Do not use the board meeting for show and tell about successes exclusively. Your board expects to help but cannot if you only give them the good news.


An example Board Agenda

Call to Order Chairman

Review of minutes from previous board meeting Secretary

Business from meeting minutes Chairman

CEO’s report CEO

Financial report CFO

Sales report VP of Sales

Operations report CEO

Items requiring board approval Chairman

Other business Chairman

Next Board Meeting Secretary

The board’s vote will be necessary on agenda topics


Board Membership

Set a time for tenure and renewals.

Set up board member review systems and use them.

Have a process whereby you can ask a member to step off.

A bad board member who dominates the conversation, comes completely unprepared, does not focus on the agenda, has a personality clash with another member or just misses meetings, can create many difficulties.

A tenure of about 3 years that is renewable with board approval is reasonable.


Other resources for board management

https://www.boardsource.org/eweb/

http://www.greatboards.org/

https://www.nacdonline.org/

https://www.nacdonline.org/education/?navItemNumber=510

http://www.executive-advisory.com/board-of-director-seats-overview/?gclid=CjwKEAjw8LOsBRDdub-swPW8riISJAAnmS01dpXGSEIZcH1Q-oOn0r6RK1rEBMC0NHXqUVWLn3MTfhoCdKHw_wcB














Author: Dr. Terri Friel

Dr. Friel is a founding member and Chair of the Early Stage Pillar of the Private Directors Association in Chicago, Il. She was the dean of the Heller College of Business for six years where she built and ran the advisory board during this time. She is currently the chair of the finance committee for the AIDS Foundation of Chicago Board and serves on the Ambassador Board for the YWCA of Chicago.

She is the CEO of Doctus LLC, which provides temporary COO services and strategic planning and early stage development services.