What are your objectives for having a board?
Why do you want a board? What made you decide to find non-executive directors? How were you imagining your board process would impact your business?
Understanding the reason why you have decided to implement a board process is critical to its success. Yes it is extensively recognised that boards add value to shareholders and other stakeholders. Yes boards can have a hugely positive impact on your company and your company’s performance. However if you do not understand why you decided to impact on creating a board in the first place, you could end up being very misaligned.
While not a reason we believe you should be appointing a board, some people are blatantly looking for directors who will bring them in business. Others are looking for directors who bring specific industry knowledge or insight. Many companies are looking for directors who bring a specific perspective or element to the board table that would not otherwise have been present.
If this blog is your first exposure to the concept of appointing a board in your own company then we would highly recommend you invest in understanding the role of a board before trying to determine your objectives for appointing one. If you have already developed a good understanding of a board for a privately-held company or family business then invest some time in considering why you want to appoint a board before you start to do so. List down the three, four or even five main reasons you want to appoint non-executive directors and consider if a board will be able to effectively deliver on these. If you are struggling to work out what they might be or are unsure if a board will be able to deliver on them, have a conversation with professionals like us.
Either way, do not end up half way down the process realising that there is misalignment between your desire and the reality. Calibrate this before the process begins and you will increase the likelihood of success of your board process.
Group Chief Executive