Looking for Board Members? Forget
Credentials--It's What They Can Bring to the Table That Counts
Young companies get too caught up in
trying to lure high-profile types to their boardrooms. But you don't need hood
ornaments; you need time, expertise and an ability to help you drive the
company forward.
Budding builders of businesses and big-city mayors often seem to
have the same problem when it comes to putting together boards, whether they're
boards of directors, advisors, or industry experts. They tend to go for the
gold and the glitz and they end up getting too little time, no real help, and
nothing else of any actual value in the bargain. They consistently emphasize
and over index on people's titles and credentials and forget that-; unless
you're only concerned with window dressing and PR-;the object of the
board-building exercise is to get some regular help, a sympathetic ear or two,
and some people on your team who've been there before, who will tell you the
truth when necessary, and who share your vision for the business. Having a
couple of board members who have
your back is the best feeling in the whole world and makes for
a much better business as well.
Being an effective board
member is a serious job, not a sinecure, and selecting the right people for
these roles is just as important as any other hire you might make. You don't
want planners and report writers; you don't need performers and pontificators;
you want doers who can help drive results. I realize that some of these guys
can end up coming with the deal, being a necessary part or necessary evil as
the case may be in securing your funding or for other historic reasons. The
trick is to make the smartest possible choices in those cases where you
actually do have a choice.
Don't confuse someone's credentials with the kind of proper
concerns and concrete commitments that it takes to do this very critical job
correctly. Some people collect board seats like they were baseball cards or
souvenir buttons. Stay away from these professional self-promoters because, in
the end, it's always about them and not worth your time or wasting a seat that
could go to someone with something real to contribute instead of some blowhard
looking to bulk up his or her resume. We see the same kinds of issues
with some of the unsuccessful
mentors at 1871. You just need to invest the time to do
this crucial job right.
There's no single or
simple way to get the process going, but as you begin to evaluate the various
candidates-; some you'll seek out and some will appear or be suggested and
introduced by people you trust-; there are six basic questions/concerns that
you should be addressing in your evaluation. There may be others and special
circumstances may dictate additions, but the ones that I have found always to
be relevant are the following:
(1) Do they have the time to do the
job and will they make the time? Some of the busiest people you know still make the best
board members because it's a matter of their commitment, not their calendar.
(2) Are they willing to show up and
not just phone it in figuratively and literally? It's very easy to lose the energy and
momentum at a board session when half the group isn't paying attention. If they
can't really be there, in the moment, they shouldn't be there at all. Posture
is actually pretty important and you want the folks leaning in and engaged, not
sitting back, looking at their phones, and contemplating their cuticles.
(3) Are they able to do the work-;
board materials reviews, meeting preparation and participation, job candidate
interviews, your spur-of-the-moment conference calls, etc.? Entrepreneurs aren't patient people and
spending a day a month or a quarter in a board meeting is almost always a
painful process, but it's made unbearable if the board members don't take the
time (and give management the courtesy) of doing their homework and coming to
the meeting prepared. We're all busy people, but the real value of bringing the
board together is the interactivity and the exchanges between smart and
successful outsiders with important perspectives that might not be represented
within the business. The worst board meetings are repetitive dog-and-pony shows
by management where the biggest challenge isn't a corporate conundrum, it's
trying to stay awake.
(4) Are they engaged and passionate
about your business? It's just as bad
to be a sycophant as it is to be a sarcastic know-it-all. It's important for
board members to tell it like it is and to tell the harsh truth to the CEO and
others when necessary, but it's even more important that they come from the
right place-; a sincere and heartfelt desire to see the business succeed for
the right reasons. These aren't smooth or easy journeys, but a little heart and
a lot of good faith makes the medicine go down more easily.
(5) Are they good and additive
collaborators-team players? A good board leaves its own desires and its selfish
concerns at the door and works together to reach the best decisions for the
company rather than pushing or promoting choices that serve other outside
interests-; including, sometimes, a board member's own investment
objectives.
(6) Do they have a relevant
something? It might
be:
(a) Skill;
(b)
Knowledge;
(c)
Experience;
(d)
Network/Connections; or
(e) Money
The bottom line is the
same rule as in football. You don't want the 11 best people you can
theoretically get. You want the best 11 people who can come together to help
you build a better business, through thick and thin, and with only that desire,
that agenda, and that goal in mind.