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BOARDS AND HOW TO
MAKE THEM
BETTER!!!!!!!!
©2014lescharm 1
WE NEED TO BE CLEAR
Public, private, family owned, venture-backed, etc?
©2014lescharm 2
In my belief, they are
fundamentally
different!!!!!!
©2014lescharm 3
And the answers to many of the questions I would
ask, would be different for each.
©2014lescharm 4
ADVANTAGES
 1.
©2014lescharm 5
DISADVANTAGES
 1.
©2014lescharm 6
THINGS TO WATCH OUT FOR
 1.
©2014lescharm 7
©2014lescharm 8
©2014lescharm 9
Is the board meeting or the dinner the night before?
©2014lescharm 10
Why Build a High-Impact Board?
©2014lescharm 11
Sounding Board
 For you and your senior managers, helping you set your
company’s top strategic goals and challenges and advise
management about execution
©2014lescharm 12
Forum
 For problem solving and management support
©2014lescharm 13
Source
 Of critical market and operational expertise
©2014lescharm 14
Resource for Identifying
 Recruiting, and onboarding top managerial talent
©2014lescharm 15
Resource for Networking
 With the key people outside your company who can help
your company succeed
©2014lescharm 16
Bad board
dynamics result
when:
©2014lescharm 17
Bad…….
 1. The board is set up for “control” or other “non-
impact” purposes.
 2. Board members are not committed to spending the
appropriate time and energy to participate and be
helpful.
 3. One or more board members monopolizes the board
discussion.
 4. Board members are not aware of or not held
accountable for what’s expected of them.
©2014lescharm 18
BAD……Part 2
 5.There is poor alignment between various board
members around the company’s short-and long-term
goals and aspirations.
 6. The management team does not properly prepare
the board to have a meaningful conversation about the
company and its markets.
©2014lescharm 19
Charm’s Main points
 The more time spent on financial statements, the less
the meeting accomplishes
 The more the board understands the metrics of
prediction, the better the discussion .
 Running the meeting is very important
 Term Limits are critical
 The board needs to be involved in the strategy
discussions way earlier than CEO’s allow or think about
 If there are outside investors, every meeting can not be
a scorecard on the CEO
©2014lescharm 20
Directors
©2014lescharm 21
AGENDA
 1. #####
 2. Issues that concern CEO
 3. Issues that the board thinks are
important
 4. Senior management team rotate
throughout the year
 5. Other…….
©2014lescharm 22
What one factor will most
influence whether or not a board
succeeds?
©2014lescharm 231%
10%
17%
18%
23%
31%
creating the board at the right time
other
Having the right mix of management,
independent, and investor board
members
Having effective board meetings
Having a cohesive board
Having diverse board members with
the right skill sets and experience
Setting Clear
Expectations,
Demanding Full
Accountability
©2014lescharm 24
 Four to eight hours per month for board-related
activities and responsibilities
 One day per quarter for on-site board meetings
 A couple of hours per month to provide ad hoc
operational or strategic advice
©2014lescharm 25
Charm’s point of view
 For private and family-owned, there are no votes….
 whether formal or informal
 Major job, help the CEO with what he or she thinks is
important at the moment and ( sometimes point out
other issues that should be discussed)
 Running the meeting is most important along with
boards expectations.
©2014lescharm 26
SOURCES:
Many, many…….
 Many materials written on the subject
 Many discussions with experienced CEO’s and Directors
©2014lescharm 29

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TCN on Air: Everything You Were Told about How to Build a Board was Wrong

  • 1. BOARDS AND HOW TO MAKE THEM BETTER!!!!!!!! ©2014lescharm 1
  • 2. WE NEED TO BE CLEAR Public, private, family owned, venture-backed, etc? ©2014lescharm 2
  • 3. In my belief, they are fundamentally different!!!!!! ©2014lescharm 3 And the answers to many of the questions I would ask, would be different for each.
  • 7. THINGS TO WATCH OUT FOR  1. ©2014lescharm 7
  • 9. ©2014lescharm 9 Is the board meeting or the dinner the night before?
  • 10. ©2014lescharm 10 Why Build a High-Impact Board?
  • 12. Sounding Board  For you and your senior managers, helping you set your company’s top strategic goals and challenges and advise management about execution ©2014lescharm 12
  • 13. Forum  For problem solving and management support ©2014lescharm 13
  • 14. Source  Of critical market and operational expertise ©2014lescharm 14
  • 15. Resource for Identifying  Recruiting, and onboarding top managerial talent ©2014lescharm 15
  • 16. Resource for Networking  With the key people outside your company who can help your company succeed ©2014lescharm 16
  • 18. Bad…….  1. The board is set up for “control” or other “non- impact” purposes.  2. Board members are not committed to spending the appropriate time and energy to participate and be helpful.  3. One or more board members monopolizes the board discussion.  4. Board members are not aware of or not held accountable for what’s expected of them. ©2014lescharm 18
  • 19. BAD……Part 2  5.There is poor alignment between various board members around the company’s short-and long-term goals and aspirations.  6. The management team does not properly prepare the board to have a meaningful conversation about the company and its markets. ©2014lescharm 19
  • 20. Charm’s Main points  The more time spent on financial statements, the less the meeting accomplishes  The more the board understands the metrics of prediction, the better the discussion .  Running the meeting is very important  Term Limits are critical  The board needs to be involved in the strategy discussions way earlier than CEO’s allow or think about  If there are outside investors, every meeting can not be a scorecard on the CEO ©2014lescharm 20
  • 22. AGENDA  1. #####  2. Issues that concern CEO  3. Issues that the board thinks are important  4. Senior management team rotate throughout the year  5. Other……. ©2014lescharm 22
  • 23. What one factor will most influence whether or not a board succeeds? ©2014lescharm 231% 10% 17% 18% 23% 31% creating the board at the right time other Having the right mix of management, independent, and investor board members Having effective board meetings Having a cohesive board Having diverse board members with the right skill sets and experience
  • 25.  Four to eight hours per month for board-related activities and responsibilities  One day per quarter for on-site board meetings  A couple of hours per month to provide ad hoc operational or strategic advice ©2014lescharm 25
  • 26. Charm’s point of view  For private and family-owned, there are no votes….  whether formal or informal  Major job, help the CEO with what he or she thinks is important at the moment and ( sometimes point out other issues that should be discussed)  Running the meeting is most important along with boards expectations. ©2014lescharm 26
  • 27. SOURCES: Many, many…….  Many materials written on the subject  Many discussions with experienced CEO’s and Directors ©2014lescharm 29