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Do You Have a High-Impact Board of Directors?

DO YOU HAVE A HIGH-IMPACT BOARD OF DIRECTORS? OpenView recently surveyed a wide array of expansion-stage CEOS and board members to find out how the best boards deliver value, what damage bad boards can cause, and how CEOS can ensure that their boards work together as a high-impact team. Find out if you have a high-performance board and, if not, what it takes to create one. DOES YOUR BOARD ADD VALUE BY... These are the top six DOES YOUR BOARD DO HARM BY CAUSING... These are the top three answers, representing 97% of survey responses. answers, representing 83% of survey responses. Recruiting top talent? The CEO's departure or removal? Providing governance? Internal confusion? Connecting you to industry contacts? Reputational damage? Helping set and evaluate strategic goals? YES? READ ON! Providing marketing and operational expertise? Solving problems/supporting your management team? If your board isn't adding value, or worse, is causing harm, NO? READ ON! it may suffer from bad board dynamics. What causes BAD BOARD DYNAMICS? HERE ARE 6 FACTORS TO CONSIDER: 99999 1 4 5 A lack of accountability A lack of alignment with the A lack of Having the wrong Members Members commitment monopolizing/ distracting others are not members prepared company What can you do to overcome bad board dynamics and help ensure your board succeeds? ACCORDING TO OUR SURVEY, THE TOP 4 SOLUTIONS“ ARE: 1 1 ENSURING BOARD MEMBERS HAVE THE RIGHT SKILLSETS AND EXPERIENCE |31% Here are 7 board member personas to consider: THE CHAIRMAN OF THE BOARD 7| 2| Typically the CEO or an independent board member, this person must keep all board THE PERSONIFICATION THE HEAD OF THE AUDIT & members on the same page, run good board OF THE COMPANY'S COMPENSATION COMMITTEE meetings, and foster board cohesion. TARGET MARKET Has previous financial experience and An independent board member who can work with the CFO and board possesses a keen understanding of a business's target market members to ensure the financial well-being of the business. and buyers. ULTIMATELY, aligning board candidates who possess diverse 6| 3 qualities with your company's greatest THE YING needs is the key to building a board THE CEO TO YOUR YANG that will drive success. A company's CEO is not just the Compliments and broadens the CEO's skills and encourages him business's internal leader, he or she must also be a critical board persona, leading and managing the board's involvement and engagement. or her to think outside the box. 5 4| THE CEO THE EXIT STRATEGIST ADVISOR & MENTOR Usually an investor board member, A retired CEO who has guided a company this person can analyze the company's through the expansion stage and can strategic direction and exit plan. provide the CEO with relevant insight, expertise, and feedback. 2 CREATING BOARD COHESION | 23% HOW CAN YOU ENSURE THAT YOU HAVE BOARD COHESION? © Assemble a diverse team that's aligned around a shared set of goals and priorities If your company fails to create strong board cohesion, the vocal O Establish a culture of mutual minority will dominate, board respect among board members meetings will become inefficient, and Hold board members accountable the board will struggle to achieve to their commitments and actions anything meaningful. © Empower board members to share feedback and insight RUNNING EFFECTIVE BOARD MEETINGS | 18% ESTABLISHING THE RIGHT MIX OF 4 MANAGEMENT, INDEPENDENT, AND INVESTOR BOARD MEMBERS | 17% Board meetings should be a fantastic opportunity to conduct a well-rounded, insightful retrospective of the While boards can vary by size depending on company's performance over the prior quarter, and set a company's stage, financing, and skill set gaps, the company's mission, vision, and goals. expansion-stage companies should ideally have a five-seat board that consists of: According to our survey, the most important steps to running effective board meetings include: © Management board members (one seat occupied by the CEO) Ending meetings with a clear Distributing meeting materials in advance © Pure investor board members consensuS 38% 9% (as few as possible) 2% Surveying board members in advance O Outside board members (three to four high-impact people who have high-impact personas) 34% 16% Engaging board members Developing a consistent individually meeting agenda BUILDING A HIGH-IMPACT BOARD OF DIRECTORS Find out how you can create a successful board by downloading our FREE E-book, LEARN MORE "BUILDING A HIGH-IMPACT BOARD OF DIRECTORS: A Guide for Expansion Stage CEOS." More than 80 expansion-stage CEOS and board members were surveyed in January 2013. 2The remaining 3 percent of respondents selected other options, including setting compensation and managing CEO transitions. openview The remaining 17 percent of respondents selected other options, including short-term focus, micromanaging, and infighting. "The remaining 11 percent of respondents selected other options, including the time at which a board is created.

Do You Have a High-Impact Board of Directors?

shared by OpenViewPartners on Apr 11
OpenView recently surveyed an array of expansion-stage CEOs and board members to find out what it takes to create a value-adding board. The results are presented in this board of directors infographic...


OpenView Labs


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