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Answer Upon - How to Develop a Successful Board of Advisors (...and Why You Should!)
Yes - You CAN Compete with Offshore - Part I
American companies historically are driven to look at the bottom line. This is in contrast to German companies, which tend to focus on technology; or Japanese companies, which tend to focus on geography. While the bottom line focus does show a snapshot of company performance, it reveals nothing of what generated that final number OR what can be done to improve it. BUT we use it anyway to make many decisions, and we can be fooled by what it seems to be telling us.MORE THAN THE BOTTOM LINEHow’s that…you ask? Well, let’s get really simple. Why do people buy from us in the first place? It can be for a number of reasons, among them quality of the product, friendliness of the service, alignment to particular requirements, responsiveness to needs, ability to deliver to a schedule, and…oh yes! Cost of the product!Now our purpose here is to find ways to be more competitive, so let’s bust up that list and look at it systematically.QUALITY OF THE PRODUCTIf you come right down to it, what IS quality? It could mean that the product will last a long time. It could be that it is particularly suited to the job it’s supposed to do. It could mean that it really looks good and is pleasing to handle. Putting all of these in a nutshell: quality means the product is well made. The customer buying your product is really the one who makes the final judgment on the quality of your product, even though he may have initially heard about it from someone else. That judgment takes a period of time to develop,
est assessment of the situation. American companies historically are driven to look at the bottom line. This is in contrast to German companies, which tend to focus on technology; or Japanese companies, which tend to focus on geography. While the bottom line focus does show a snapshot of company performance, it reveals nothing of what generated that final number OR what can be done to improve it. BUT we use it anyway to make many decisions, and we can be fooled by what it seems to be telling us.MORE THAN THE BOTTOM LINEHow’s that…you ask? Well, let’s get really simple. Why do people buy from us in the first place? It can be for a number of reasons, among them quality of the product, friendliness of the service, alignment to particular requirements, responsiveness to needs, ability to deliver to a schedule, and…oh yes! Cost of the product!Now our purpose here is to find ways to be more competitive, so let’s bust up that list and look at it systematically.QUALITY OF THE PRODUCTIf you come right down to it, what IS quality? It could mean that the product will last a long time. It could be that it is particularly suited to the job it’s supposed to do. It could mean that it really looks good and is pleasing to handle. Putting all of these in a nutshell: quality means the product is well made. The customer buying your product is really the one who makes the final judgment on the quality of your product, even though he may have initially heard about it from someone else. That judgment takes a period of time to develop,
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:
- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your neThe Art of Building a Successful TeamIn today’s rapidly changing and highly competitive markets, many privately held companies are creating outside advisory boards to give owners and CEOs fresh, knowledgeable advice.
In order for your career to grow, you must demonstrate effective leadership skills. Organizations are finally beginning to realize that soft skills are just as important as technical skills and therefore, are placing more emphasis on developing and rewarding effective leaders. One important skill for leaders to master is the ability to recruit high-potential talent into the organization.The responsibility of recruiting these candidates doesn’t fall solely on the shoulders of your recruiter. There are many ways that you can enhance their efforts to attract the most sought after candidates. Recruiting shouldn’t be reactive – performed only when you have an opening on your team. It should be an ongoing activity so that your pipeline of candidates is full and you can start interviewing shortly after a need has been established. Follow these tips to make the most of your efforts:1. Look to your existing employees for a promotional opportunity, first. You should always look within the organization before you consider external candidates. Reward employees who are actively developing their skills and are loyal to the company. Is there someone who is ready to take on new responsibilities?2. If you are an active member of your professional community, start building a rapport with prospective candidates. Recruiting is a lot like marketing – the more positive contact you have with prospects, the more receptive they will be to talking to you about making a move to your organization. Keep in contact with those
Even for small businesses, setting up an advisory board can give you a significant advantage over competitors that are relying solely on internal talent. An experienced and well-connected board of advisors can help your business grow and prosper in ways you’ve never imagined.
What is a Board of Advisors?
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.
Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:- An unbiased outside perspective.
- Increased corporate accountability and discipline.
- Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your neeManagers: Your PR Working for You?i>Increased corporate accountability and discipline.
If all you want are brochures, press releases and broadcast plugs, and you’re getting them, good show!But, as a business, non-profit, government agency or association manager, if you want the very best that public relations has to offer, you may want to think about PR a little differently. Say, like this: I really need to do something meaningful about the behaviors of those important outside audiences that MOST affect the group, department, division or subsidiary I manage.Thus, you might conclude that you need to create the kind of external stakeholder behavior change that leads directly to achieving your managerial objectives. And then, follow through by persuading those key outside folks to your way of thinking by helping move them to take actions that allow your unit to succeed.The good news is that public relations is based on a highly proactive premise that can easily go your way: people act on their own perception of the facts before them, which leads to predictable behaviors about which something can be done. When we create, change or reinforce that opinion by reaching, persuading and moving-to-desired-action the very people whose behaviors affect the organization the most, the public relations mission is usually accomplished.What it will mean to you as a manager is that the right public relations planning really CAN alter individual perception and lead to changed behaviors among your key outside audiences. But your PR effort must demand more than - Enhanced CEO and management effectiveness.
- Greater credibility with investors, vendors and customers.
- Help in avoiding costly mistakes.
- Rounding out skills and expertise lacking in current management team.
- A sounding board for evaluating new business ideas and opportunities.
- Enhanced community and public relations.
- Improved marketing results and effectiveness.
- Strategic planning assistance and input.
- Centers of influence for networking introductions.
- Crisis and transition leadership in the event of the death or resignation of the CEO.
- Help anticipating market changes and trends.
Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your neSales Training Programmesany is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.
Sales training programs help determine the size of the sales force. The size of the sales force has to be fixed at the optimum level. A number of interrelated considerations are involved like the level of sales expected and the number of sales people needed for generating this sale. Also, there are a minimum number of salespeople needed regardless of the level of sales. A minimum number of salespeople are needed to furnish the required marketing intelligence and costs involved in maintaining the sales force.Some firms try to fix the sales force size first and then structure the territories suitably and allot them to available salespeople. Other firms attempt an integrated exercise of determining the number of territories and the number of salespeople and arrive at the optimum. The latter practice has greater merit.A sales territory is a geographical grouping of customers and prospects. Accordingly, designing sales territories means the division of the total marketing area into a number of territories, with the objective of servicing the territory effectively, economically and profitably. Two methods are employed commonly in designing sales territories: the equal workload method and the equal potential method.The equal workload method aims at equalizing the workload of all salespeople. The territories are formulated so that they are equal in workload rather than in potential. The workload is considered in terms of the time required for the salesperson to service all the accounts in a territory. On the other
Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.
Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:
1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?
Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your neTake the Temperature Before You Launch Your PR Campaign: Are You Sizzlin' or Fizzlin'?s, such as your company’s size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.
There is only one thing in the world worse than being talked about, and that is not being talked about." - Oscar WildeEvery growing company has a story to tell, yet not every growing company has the budget to retain a public relations firm to tell it. This article is the first of a series that will show you how to tell your own winning story without breaking the bank. Step-by-step, month by month, you’ll learn how to prepare your news, share your news and/or expertise, and earn the headlines you need to spread your story far and wide. Plus, you’ll learn about plenty of useful and often free resources to help you get the mission accomplished. When you get into action, your brand, reputation, and business will grow. You’ll soon learn that good publicity can last forever, and you’ll wonder why you didn’t begin sooner.But don’t just start writing and sending press releases all over town, the Internet, or the world without first determining the current “buzz” about your company and what you most want to accomplish as a result of your publicity efforts. First take the temperature to see if you are sizzlin’ or fizzlin.’ Visit www.Google.com to discover the current “buzz” about your name and company. Better yet, visit www.linkpopularity.com to learn how popular your Website is according to Google, MSN.com, and Yahoo.com. If the only thing that comes up is the 5K race you ran three years ago, you’ve got some work to do. And, if you don’t yet have a Website, add that to your list of essential tasks to accomplis
Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner’s first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.
Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your nePoint Of Sale Hardwareest assessment of the situation.
The systems model of management demonstrates that communication is what is needed for executing managerial functions and for integrating the organization with the outside world. Point of sale hardware exactly performs this function with the help of Management Information System (MIS).MIS can be defined as a formal system of gathering, integrating, comparing, analyzing and dispersing information internal and external to the enterprise in a timely, effective and efficient manner. MIS has to be tailored to specific needs and may include routine information, such as monthly reports, information that points out exceptions, especially at critical points and information necessary to predict the future.Electronic equipment allows speedy and inexpensive crunching of gigantic quantities of data. The computer can, with proper programming, process data toward logical conclusions, classify them and make them readily available for a manager’s use. In fact, data do not become information until they are processed into a usable form that informs.Information needs differ at various organizational levels. Therefore, the impact of point of sale hardware will also be different. At the supervisory level activities are usually highly programmable and repetitive. Consequently, the use of hardware is widespread at this level. Scheduling, daily planning and controlling of the operation are just a few examples.Middle level managers, such as department heads are usually responsible for administration and coordination. But much
Using professional advisors such as your lawyer, banker or accountant as board members has it’s own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.
Some critical action steps for recruiting a dynamite board of advisors are:- Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
- Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
- Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
- Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
- Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
- Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
- Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for “yes men” and that you want advisors who will challenge you and hold you accountable for your businesses growth.
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.
Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.
Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:- Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
- Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
- Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member’s personality is “too strong” and becoming disruptive.
- Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
- Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.
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