Tags |
|
|
Links |
|
|
Digg it UP - How to Develop a Successful Board of Advisors (...and Why You Should!)
Starting Out in Radio
Careers in radio, like elsewhere in the industry, are never an easy road and finding the perfect job for you will require both a knowledge of the radio industry and knowledge of yourself.A degree in media or radio production is an advantage but not essential. What becomes most important is to knowA) Whether you are sure you want to work in the radio industryAndB) in what capacity within the industry you would like to work.These seem like basic principles but a confident response to both will most certainly make career progression easier. We’ll look at part A) first.I guess it’s most important to point out that careers in radio, like other media industries, and not always well paid and can incorporate long hours (including weekends). Whilst not sufficient to say it is always a labour of love, a job in radio is certainly a consuming vocation that will most certainly develop your knowledge of certain subjects and how they are conveyed in the public sphere.If you are still thinking a career in radio sounds good to you then experience is the next step is experience. Once again this is echoed across the media industry that it can often be the case that a job will require experience but an individual can’t gain experience without a job!Although we are all not lucky enough to be able to work for free its certainly comes as an advantage in terms of gaining experience of careers in radio. If you’re thoughtful enough to have been involved in university, hospital or community radio wh
iders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors. Careers in radio, like elsewhere in the industry, are never an easy road and finding the perfect job for you will require both a knowledge of the radio industry and knowledge of yourself.A degree in media or radio production is an advantage but not essential. What becomes most important is to knowA) Whether you are sure you want to work in the radio industryAndB) in what capacity within the industry you would like to work.These seem like basic principles but a confident response to both will most certainly make career progression easier. We’ll look at part A) first.I guess it’s most important to point out that careers in radio, like other media industries, and not always well paid and can incorporate long hours (including weekends). Whilst not sufficient to say it is always a labour of love, a job in radio is certainly a consuming vocation that will most certainly develop your knowledge of certain subjects and how they are conveyed in the public sphere.If you are still thinking a career in radio sounds good to you then experience is the next step is experience. Once again this is echoed across the media industry that it can often be the case that a job will require experience but an individual can’t gain experience without a job!Although we are all not lucky enough to be able to work for free its certainly comes as an advantage in terms of gaining experience of careers in radio. If you’re thoughtful enough to have been involved in university, hospital or community radio wh
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with indiGoogle Still King Of Pay Per Click?In today’s rapidly changing and highly competitive markets, many privately held companies are creating outside advisory boards to give owners and CEOs fresh, knowledgeable advice.
You know that Google has a corner on the market when people refer to pay per click advertising as Adwords campaigns. This is a testimony to the Google empire. But while Google Adwords may be the biggest game in town they're not the only game in town. Some say there is a good chance that Google may very well be knocked off their thrown. This article is going to look at some problems with Google Adwords that could lead to their downfall. Sometimes, when a company gets big gets too big for their own good, they think that they can do and get away with just about anything. That may hold true for a while, but anybody who thinks that a giant can't be knocked off its thrown, should take a look at what happened to AT&T and IBM. They are both no longer the monopoly that they once were. And in the case of IBM, they're not even number 1 anymore.One big consideration with Google pay per click is that you can no longer send customers to a sales page that isn't yours. Well, you could, but you won't get very far. The search engines can penalize you heavily if all you're doing is sending people to a landing page of somebody else's product as an affiliate. The reason, they say, is that customers would click on ads and each one would take them to the same page. This has driven costs for some keywords through the roof.A second big consideration is how strictly they hold you to the targeting of keywords and the pages they apply to. This is understandable if you are targeting keywords that don't at all apply to the pages you are sendi
Even for small businesses, setting up an advisory board can give you a significant advantage over competitors that are relying solely on internal talent. An experienced and well-connected board of advisors can help your business grow and prosper in ways you’ve never imagined.
What is a Board of Advisors?
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.
Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:- An unbiased outside perspective.
- Increased corporate accountability and discipline.
- Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
- Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
- Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with indivHelp Save Your Local Pool Company!mmerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
It’s clear that major market buyers such as Wal-Mart, Home Depot and BJ’s, your typical wholesalers, are starting to infiltrate the pool industry by selling large quantities of pool chemicals. The Problem with these companies is the lack of knowledge, plain and simple. Try asking John Doe behind the counter at Sams Club how many bags of shock you should put in your pool to get rid of the algae. Try asking Jane Doe stocking shelves if Chlorine or Baquacil is right for you. It’s a waste of time and can also be a waste of money.Other Department stores such as Target are starting to dive into the pool business by selling pool toys and inflatables. Which how can your blame these distributors, they are making tons of money by selling in such large quantities. It makes it very hard for the local pool store to gain an edge on the market. The pool industry starts to ask questions like “what can we do to set ourselves apart from the rest.” Chemicals are chemicals but knowledge is right now about the only thing these big retailers and wholesales don’t have. As I mentioned before, try asking someone at BJs the use for Chlorine stabilizer or calcium hardness. A guaranteed dumb look will appear.The average customer will always try and save money (thats what coupons are for.) Everyone knows that and know one knows it better than Wal-Mart. Unfortunately for small business owners, Wal-Mart has the power to sell things lower than the suggested retail price because of their buying power. That puts small businesses at a lost. They do
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
- Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
- Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with indiDespite Illusions on TV, Quality Takes Timerom a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
In the consumer marketplace, people may pay extra for a designer label, a recognized brand or products with celebrity endorsements. When a business invests in capital equipment, however, all the above becomes meaningless unless the equipment performs, meeting or exceeding expectations. While price, delivery and aesthetics are the usual factors people claim as the primary criteria when making a purchase, reliability, in my view, has slowly taken over the No. 1 spot as the key to customer satisfaction and repeat business.By reliability, I mean confidence that the purchased equipment will perform as advertised over a reasonable amount of time.Manufacturers will tell you that they are responsible for building the reliability into their products through a combination of good design, quality materials and careful manufacturing techniques.This is true to a point. However, manufacturers today are not only under the gun to produce quality products, but are being challenged to do it in record time. America has long been a society that wants to have its cake and eat it, too. As if demanding things great but also cheap was not challenge enough, today the bar has risen to include great, cheap, and delivered in 24 hours.One only needs to turn on television to see how this phenomenon is running rampant. Is "reality TV" changing the way we conduct business? Is it entertainment or a sign of things to come? Everything from building custom $100,000-plus motorcycles in a week to doing a full home renovation while the ow
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
- Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
- Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with indiElectronic Product Developmentperspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
Electronic product development includes a highly developed theoretical and practical management of all features relevant to the design, development and manufacture of modern compound electronic systems and sub systems.Electronic product development involves design methodologies and procedures that are established by making use of sophisticated industrial standard computer aided design software. The other electronic product development activities include thermal analysis, electromagnetic field plotting, advanced PCB design and simulation.Companies offering courses on electronic product development also concentrate on how health and safety and other lawful issues focused on electronic based products can be integrated into the product development, along with guidance on all other matters related to electronic product development. These courses have been formulated for system designers, circuit designers, PCB designers, technical managers, technical sales and technologists in addition to mechanical and production engineers working in an electronic atmosphere. Most of these courses take place over the Internet. These courses are a great way to investigate business and management issues that are above all relevant to electronic product development, together with project management and lead-free execution. These companies also provide a wide variety of consulting services for producers of electronic products. They help at any stage of product development, from inception to installation, or act as a support team or can ev
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with indiESCAPE the Pitfalls and Keep Your Organization Productive During the Holiday Seasoniders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
It’s that time of year again.Shopping, parties and long lines everywhere. More vacations, more family commitments, and more stress. These are a few of the challenges we all face during the holiday season. The holidays are a wonderful time of the year, and we will enjoy them more as leaders when we learn how to help our organization revel both in the season and their results.Following are some suggestions to keep the focus and results high as the bells ring louder and the shopping days disappear. Rather than avoiding the challenges or denying the distractions the season offers, ESCAPE the problems by applying the suggestions below.Expect good results. As a leader, one of your responsibilities is to set clear expectations and goals for others. However successful you have been at communicating and gaining understanding on these expectations, the holidays require some additional expectation setting. Give people a sense of where they are on their annual goals, and encourage them to finish the year strong. As you set and reinforce these expectations, remember to give people the support and resources they need to succeed.Share spirit. While some people have a bit of a cynical, stressed out, scrooge attitude towards the holidays, most find their spirits lifted and thoughtfulness is at an annual high. Encourage people to show their spirit and sense of goodwill when communicating with others inside the organization. Even more importantly, encourage those sales people, Customer Service professionals
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
- If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
- Value their input, even when they disagree with what you want to do. Sometimes a board is at it’s most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
- Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with individual members on the phone at least monthly and send them information well in advance of your meetings, to help them prepare and keep the meetings productive.
- Hold regular meetings. Most boards meet once per quarter. However, boards should meet more often during times of rapid growth or if company needs merit additional oversight and guidance.
- Have an objective for each meeting. Your board members are busy people and their time is valuable. Make the most out of your meetings with them, by having a clear agenda and objectives for each meeting. Make sure to cover the most important items of business first, in case the discussions take longer than planned or some members have to leave early.
Periodically assessing the board’s effectiveness is a critical factor in ensuring a good return on investment. Each year the board should set performance goals and define their criteria for success. At the end of the year the CEO and the board should assess it’s performance, compared to its goals and criteria for success.
Over 80 percent of all private companies are operating without a board of advisors or board of directors. Odds are your competitors do not have one. Because of this, developing a board of advisors can give your company a distinct advantage over your competition. This is particularly true for start-ups and family run businesses.
There is tremendous value in receiving objective, knowledgeable advice from a board of advisors who share in the financial and equity growth of your business. I encourage you to begin recruiting your advisory board today!
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggitup.net/article/45310/diggitup-How-to-Develop-a-Successful-Board-of-Advisors-and-Why-You-Should.html">How to Develop a Successful Board of Advisors (...and Why You Should!)</a>
BB link (for phorums):
[url=http://www.diggitup.net/article/45310/diggitup-How-to-Develop-a-Successful-Board-of-Advisors-and-Why-You-Should.html]How to Develop a Successful Board of Advisors (...and Why You Should!)[/url]
Related Articles:
When Are Background Checks A Good Idea?
Great Marketing is Like Making a Great Movie
The Brothers Knew How To Win New Business
Bookmark it:
|