Boardrooms are facing great unpredictability and a breakdown of business models in their industries, which changes the role of directors today. We need directors who are synthesizers of information—who can see the smoke over the horizon and bring this insight into their companies.
Entrepreneurs are often advised that they should have a board of directors; but due to their lack of familiarity with such groups, they don’t understand why they need one, what they’ll get from having one, and what it will cost to assemble it.
While private companies are not required to have boards of directors, some may want to. Here are 6 reasons why having a board in a private company is a good idea.
Chief executives run the company, but the board of directors must also lead the organization on the most crucial issues. Monitoring is still important. Governance matters. But the time has come for boards to rebalance their responsibilities. Directors need to know when to take charge, when to partner and when to stay out of the way.
Need to overcome an embarrassing situation, rescue your brand from financial disaster, shift the company in a new direction or shore up some expertise in a currently weak area? It may be time to make a change to your board, as these companies are.
Boards of directors are finding themselves in a position of having to shore up their tech skills in an area where, a year ago, they didn’t have any skills at all beyond simply asking the CTO, “Is our data security working? Great. Good. Have a nice day.” Now they’re struggling simply to understand the right questions to ask.
Recent history shows that directors who take more active roles—particularly in CEO selection—are fundamental to the long-term health of their companies.
People set strategy. Directors and executives who know where the company should be going will be best equipped to get it there.
Boardroom insider Ralph Ward says describing a board meeting “would be like telling me what a swell time you had at your last dentist appointment.” Here is his roundup of ideas you can try to make your next board meeting go faster, work better and achieve more.