How to Build a Strong Board of Directors

Posted by Blog Post on January 31st, 2021

To maintain the rapidly growing business and to up-raise a burgeoning startup to the top level, building a board is important. Every board member is gifted with different skills or expertise. And, if worked together towards a mission and vision of a corporation then it creates synergy and the success can be celebrated. Now building up a board of members for any company can be extremely challenging because they are responsible to govern an organization. They look after many things from creating the organization’s mission statement, selecting executive director, monitoring financial resources to developing and accessing skills, recruiting new board members and maintaining integrity.

Below are a few important steps which you should take in order to build a strong board of directors which can help elevate a company’s business.

Look Beyond Your Investors

The foremost thing to do is to look for board members beyond your investors. Always remember that if your investors are good at contributing, it doesn’t mean that they are suitable for the seat of your board members. And this happens a lot of times when it comes to selecting members of the board. Your board should represent your market, be it current or future strategic plans and there are people better than your investors for such a role so consider someone beyond that.

Find an Experienced Chairman

Finding an experienced chairman who has been in a similar role before can benefit the organization in so many ways. Choosing a chairman without previous work experience is a grave mistake. The reason behind choosing a person with at least five to 10 years of experience is that he will be able to manage diverse stakeholder interests from the inside as well as the outside.

Be Transparent

Another step that you can take in order to build a vigorous team of board members is to stay transparent and be open to communication. Include your board members when you’ve to make a decision of changing a member. By doing so, your board members are not blindsided. This also applies when you are to select a new member for the board.

Best CEOs are always transparent and include his/her team members in important decisions.

Board’s Size

There is no ideal board size. The size of the board varies from organization to organization. But for many companies, the ideal size is 5 or it can grow up to 7 members. Keeping the number low ensures diversity, retains discipline, engagement, focus and commitment.

Plan for the Long Run

One significant step to consider to choose the right set of board members for any organization is selecting your board members for the long run. They are the ones who are going to shape your company’s future and culture and who are responsible for your organization’s growth. Keep this thing in mind that you’re selecting a member to work with him for at least five to seven years. It’s better to choose wisely and thoughtfully keeping long term work relationships in mind.

Avoid Applicants Actively Seeking for the Position

Another thing to consider here is to avoid those applicants who are frequently looking for the board member position. These people are interested to grow more as an individual and less focused on the company’s mission and goals. It’s better to attract the position and convince those who are too occupied to worry for their next board position. Convince the busy one’s to work with you, it’s worth it.

Set Expectations, Communicate Well and Build Trust

Now once you have selected the board members, for their stability and in order to make the board work, there are a few things you should do. Transparency, clear communication is the key to building trust and effectively managing the board team.

Meeting with your board members outside the board and workplace is essential in making the relationship strong and generating trust. Setting up occasional, informal meetups and dinners is also a good option to strengthen the board.

This is how you can build a strong and reliable board. To fill the positions, you can also hire a board placement firm, which is experienced in hiring board members.