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value to you and the company.<\/p>\nSome of you have gotten along forever without a board of directors, or used your spouse as the \u201cother\u201d board member from the start.\u00a0 But there are some very good reasons to build a great board composed of some outside members.\u00a0 And good board members can add real\u00a0value to you and the company.<\/p>\n
Where to learn more…<\/strong><\/p>\n In other posts (and in our book, “Building Great Boards” – available on Amazon and other booksellers)<\/em> we cover legal responsibilities of a board, how to pay board members, the limits of their responsibilities, dealing with under-performing or \u201cnoisy\u201d board members, and more.\u00a0 Today, we cover an ideal board\u2019s collective mindset<\/em>.<\/p>\n If you are responsible for forming a board, managing it, or evaluating its collective performance, consider these three important modes of engagement as you guide\u2026<\/p>\n Generative thinking:<\/strong>\u00a0 Do you have board members who often ask \u201cwhy?\u201d or \u201cWhat if\u2026\u201d Or \u201cWhat are the alternatives?\u201d Or the important one: \u201cIs this idea on mission?\u201d\u00a0 These are generative thinking questions.\u00a0 Hmm. Generative. Now there\u2019s a word perhaps you have never heard, and should be added to your corporate toolset and vocabulary.<\/p>\n [Email readers, continue here\u2026]<\/em>\u00a0Generative thinkers are relentless in asking questions that get to the core of an idea, often making the originator think more deeply about the effects over a longer period of time.\u00a0 Some ideas sound unbelievably creative \u2013 and may be that.\u00a0 But sometimes there is a barrier, an impossibly high cost not considered, a social backlash never thought of, or competition already covering the idea that is unknown to the originator.\u00a0 Which leads us to the second class of creative board thinking\u2026<\/p>\n Strategic thinking:<\/strong>\u00a0\u00a0Board members who ask: \u201cWhat is the competitive landscape?\u201d or \u201cHow about the public relations impact?\u201d or \u201cDoes this idea move us toward our goals?\u201d or\u00a0 Most of us in management have too little time for strategic thinking.\u00a0 \u201cAh ha\u201d moments are too few when there are lists of urgent things to do that never seem to be completed.\u00a0 Good board meetings allow time, and the chairman encourages members to ask strategic questions to help focus the board on its best use of that time.<\/p>\n Fiduciary thinking:<\/strong>\u00a0 Most board members, especially those composed of members from larger businesses, are good at the fiduciary questions.\u00a0 \u201cIs this legal?\u201d \u201cIs it feasible (financially, with our resources, with our capabilities?)\u201d \u201cCan we afford to do this?\u201d \u201cIs this idea sustainable?\u201d\u00a0 These are typical fiduciary questions.\u00a0 Importantly, these also help a board to cover the legal \u201cduty of care\u201d for the health of the company. But that, too, is the subject for another time.<\/p>\n The punch line:<\/strong><\/p>\n Investing in the creation of a governance board is not enough.\u00a0 We must encourage a constant use of\u00a0generative, strategic and fiduciary thinking\u00a0<\/em>from \u00a0board members, encouraging this most appropriate mindset.\u00a0 And we must present our ideas in board meetings or documents in such a clear manner that such questions will be asked, and discussion allowed.<\/p>\n Most importantly, we must leave enough time in a board meeting for these discussions. Which means reducing the time spent in routine reporting, delivering materials well in advance when possible, and encouraging participation from all board members.\u00a0 This is not easy. But the potential for great results leads to the board giving \u201cmacro governance\u201d and not delving into the micro details that management deals with on a daily basis.\u00a0 A better company is the goal.\u00a0 And what CEO or board wouldn\u2019t want that?<\/p>\n","protected":false},"excerpt":{"rendered":" Some of you have gotten along forever without a board of directors, or used your spouse as the \u201cother\u201d board member from the start.\u00a0 But there are some very good reasons to build a great board composed of some outside … Continue reading ![\"\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2018\/01\/Boards-of-directors-300x234.png\")
\u201cIs this just too little value for too much money?\u201d \u2013 are adding to the dialogue in valuable ways and should be encouraged, not just tolerated.<\/p>\n