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TCN on Air: Everything You Were Told about How to Build a Board was Wrong


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Your Board is one of the most valuable parts of your company. They help you steer, make decisions, and could get you that first investment. Or they can push you off a cliff, vote incorrectly, and cost you your company. We will help you get to Plan A.
The revered Professor Les Charm will talk you through how to know who to put on (and keep off) of your Boards, and much more.
Expert -
Les Charm, Babson University

Published in: Business
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TCN on Air: Everything You Were Told about How to Build a Board was Wrong

  1. 1. BOARDS AND HOW TO MAKE THEM BETTER!!!!!!!! ©2014lescharm 1
  2. 2. WE NEED TO BE CLEAR Public, private, family owned, venture-backed, etc? ©2014lescharm 2
  3. 3. In my belief, they are fundamentally different!!!!!! ©2014lescharm 3 And the answers to many of the questions I would ask, would be different for each.
  4. 4. ©2014lescharm 4
  5. 5. ADVANTAGES  1. ©2014lescharm 5
  6. 6. DISADVANTAGES  1. ©2014lescharm 6
  7. 7. THINGS TO WATCH OUT FOR  1. ©2014lescharm 7
  8. 8. ©2014lescharm 8
  9. 9. ©2014lescharm 9 Is the board meeting or the dinner the night before?
  10. 10. ©2014lescharm 10 Why Build a High-Impact Board?
  11. 11. ©2014lescharm 11
  12. 12. Sounding Board  For you and your senior managers, helping you set your company’s top strategic goals and challenges and advise management about execution ©2014lescharm 12
  13. 13. Forum  For problem solving and management support ©2014lescharm 13
  14. 14. Source  Of critical market and operational expertise ©2014lescharm 14
  15. 15. Resource for Identifying  Recruiting, and onboarding top managerial talent ©2014lescharm 15
  16. 16. Resource for Networking  With the key people outside your company who can help your company succeed ©2014lescharm 16
  17. 17. Bad board dynamics result when: ©2014lescharm 17
  18. 18. Bad…….  1. The board is set up for “control” or other “non- impact” purposes.  2. Board members are not committed to spending the appropriate time and energy to participate and be helpful.  3. One or more board members monopolizes the board discussion.  4. Board members are not aware of or not held accountable for what’s expected of them. ©2014lescharm 18
  19. 19. BAD……Part 2  5.There is poor alignment between various board members around the company’s short-and long-term goals and aspirations.  6. The management team does not properly prepare the board to have a meaningful conversation about the company and its markets. ©2014lescharm 19
  20. 20. Charm’s Main points  The more time spent on financial statements, the less the meeting accomplishes  The more the board understands the metrics of prediction, the better the discussion .  Running the meeting is very important  Term Limits are critical  The board needs to be involved in the strategy discussions way earlier than CEO’s allow or think about  If there are outside investors, every meeting can not be a scorecard on the CEO ©2014lescharm 20
  21. 21. Directors ©2014lescharm 21
  22. 22. AGENDA  1. #####  2. Issues that concern CEO  3. Issues that the board thinks are important  4. Senior management team rotate throughout the year  5. Other……. ©2014lescharm 22
  23. 23. What one factor will most influence whether or not a board succeeds? ©2014lescharm 231% 10% 17% 18% 23% 31% creating the board at the right time other Having the right mix of management, independent, and investor board members Having effective board meetings Having a cohesive board Having diverse board members with the right skill sets and experience
  24. 24. Setting Clear Expectations, Demanding Full Accountability ©2014lescharm 24
  25. 25.  Four to eight hours per month for board-related activities and responsibilities  One day per quarter for on-site board meetings  A couple of hours per month to provide ad hoc operational or strategic advice ©2014lescharm 25
  26. 26. Charm’s point of view  For private and family-owned, there are no votes….  whether formal or informal  Major job, help the CEO with what he or she thinks is important at the moment and ( sometimes point out other issues that should be discussed)  Running the meeting is most important along with boards expectations. ©2014lescharm 26
  27. 27. SOURCES: Many, many…….  Many materials written on the subject  Many discussions with experienced CEO’s and Directors ©2014lescharm 29