One of the toughest challenges private company management teams face is building their first board.
An engaged and effective board of directors can add a huge amount of value, create a competitive advantage and help a company flourish. How, though, do you go about assembling a qualified team of outside directors, and what should you expect along the way? We’ve broken down the process into three steps to jump-start your board member recruitment campaign.
Know Your Needs
Before you start the recruitment process, priority three key criteria:
A recent Deloitte look at individual perspectives. “Many private companies recruit candidates from multiple industries both to broaden board perspective and to help identify opportunities for expansion with experience that includes mergers and acquisitions, marketing and sales, finance and law.
But as you look for the right, watch out for the wrong ones, too. Tech innovation resource VentureBeat names appointing the wrong people to the board as a top mistake made by start-ups. According to VentureBeat , businesses should “carefully consider board nominees and ask for feedback from people who have worked with them”, “as well as appoint at least one director who is loyal to the company only.” In a way of positive progress.
While it’s time to take a look at what it takes to meet your needs. Author and corporate governance expert Julie Garland McLellan told Entrepreneur that businesses should “use a crystal ball.” Think long term and plan ahead.
Give and take
Once you’ve got a staffing strategy in place, it’s time to get to know your candidates. Suss out potential conflicts of interest;
Understanding your candidates’ a must when building a functional board. The non-profit Robin Hood Foundation ‘s governance and board placement team advises to create a board prospectus to “facilitate necessary – and sometimes awkward – conversations about time and financial commitments” While some board-related activities, candidates should be well aware of their responsibilities and the required level of engagement.
Deloitte recommends that they evaluate their board members every year “so that they can continue to meet their expectations.” public trade analysts, financial statements and organizational charts investor trade publication there is little precedent for what you are looking for and what you would want to know yourself is a good place to start.
Immerse Your New Board in Your Business
When the screening phase of the recruitment process is complete, it’s time to become your new board member in your company’s world. Pull back the curtain as you would for a new member of staff so that directors can familiarize themselves with company culture. The Robin Hood Foundation recommends a “robust orientation process” to get you up to speed, and highlights the importance of providing guidance on the subject So Building Loyalty and Trust Your board’s success will depend on its commitment to your company, and witnessing the business’s inner workings.