Boards of directors have a number of important functions, both legal and structural.\u00a0 Boards provide or see to it that there are resources for the company (especially money) to operate.\u00a0 The board selects, monitors, helps, and oversees compensation for the CEO.\u00a0 The board can replace an underperforming CEO.\u00a0 The board is responsible for approval of all deferred compensation for all employees at all levels, such as stock option grants, and is responsible for the vision and strategies for growth and protection of the corporate asset.<\/p>\n
The CEO has every right to expect his or her board to help with issues when asked, particularly when board members have associates, friends, or contacts that they believe would be able to help solve a problem or provide a service requested or needed by the CEO.<\/p>\n
We used to call these contacts collectively the \u201cgolden Rolodex,\u201d but long since have had to replace the name since there is an entire generation of management unfamiliar with the circular Rolodex.\u00a0 (No, that is not the watch company, if you are one of those.)\u00a0 Board members each have a collection of associates who, because of their relationship to the board member, usually would be willing to help provide a solution to a problem when called upon.<\/p>\n
[Email readers, continue here…]<\/em><\/span>\u00a0 It is one of the most useful services some board members perform in any organization.\u00a0 Because of the value of these contacts to the board member, it is important that these contacts not be misused by the CEO, and that each offer is followed up with at least a first contact when a name is offered.<\/p>\n Some of your board members will have and offer more relevant contacts than others, and you will soon learn the importance of keeping those board members in closer contact and better informed between meetings.\u00a0 The intangible resources they provide can easily lead to finding ways to reduce time and cost to market, to find valuable new employees, and to find new customers who will listen to your pitch because of their relationship with the board member.\u00a0\u00a0 People you could not reach yourself are sometimes quite willing to listen and help because of those relationships.\u00a0 So use the board for outreach.\u00a0 As long as not overused, your board members expect to be asked, to offer and to encourage use of their valuable contacts.<\/p>\n","protected":false},"excerpt":{"rendered":" Boards of directors have a number of important functions, both legal and structural.\u00a0 Boards provide or see to it that there are resources for the company (especially money) to operate.\u00a0 The board selects, monitors, helps, and oversees compensation for the … Continue reading