Issues aside from regulatory, governance, and accounting, a company can receive huge benefits from an independent, objective Board of Directors in the likes of strategies, new ideas, advances to resolving issues, and established business and community relationships. At times when hardships in the economy and marketplace arise, this input can be crucial for the growth and success of the company.
Some questions to consider when evaluating the composition and contributions of your Board should include:
- Is your Board capable of leading the company to the next level of success and tackling the planned direction of the company?
- Does your Board have an assortment of viewpoints and skill sets which will provide a wide range of opinions and ways to deal with problems?
- Does your Board have expertise in the accounting, audit, risk management and financial areas to address these issues in today’s market?
- Does your Board have sufficient knowledge of the current and future interests of your owners, employees, and customers?
- Is your Board addressing the diversity issues, including gender, ethnic and even geographic, which may represent critical elements of your company’s business environment?
When replacing a Board member or adding to your existing Board, you will want to make sure that the individual you add has the time and capability to provide a significant contribution to the success of your company. A number of Board members resign from their positions due to the increased time that is required of them to carry out their duties in addition to their other professional obligations.
Recently, Carl J. Taylor & Co. (http://www.carltaylorco.com) was tasked to help an employee owned construction and manufacturing company in the hiring of two new independent Board members. In the company’s words, "In expanding our Board, we were seeking to add diversity candidates with a variety of very specific business, industry, and functional capabilities. Carl Taylor did an outstanding job of completing these very difficult searches."
All companies need to make an assessment of their Board composition from time to time; the present and future needs of the company and the types of skills and experiences needed to allow the company to most efficiently attain and surpass its success objectives must be kept in perspective. Remember that during economic difficulties, the addition of a new Board member may be one of the most productive and relatively low cost actions that you can pursue.
