Advice for small companies on how to develop and manage a board. A primer for new venture companies and entrepreneurs.

1. Building your board
A PRIMER FOR NEW VENTURE COMPANIES
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2. 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
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3. 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)
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4. 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.
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5. 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.
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6. 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
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7. 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.
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8. 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
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9. 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.
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