survival. Discussion around progress towards the rolling fiveyear plan must always be on the agenda, as should the review
of standard reports such as accounting matters, monitoring of
marketing activities and non-financial performance indicators.
Running the initial board meetings
Those first meetings will be untidy and slightly unstructured
as the board finds its feet and builds a structure that’s
meaningful to your organisation. At different times, the focus
will be on current ‘hot issues’ such as marketing, liquidity,
R&D, personnel matters, strategic growth etc. At initial
meetings energy must be put into developing and agreeing
on the company vision, creating a ‘brand map’ and building a
five-year plan everyone will buy in to. Where there are several
owners in a business, identifying shareholder/director values,
reviewing a commercial remuneration model and setting a
valuation methodology for an eventual exit may also be involved.
A common hurdle owners must get over when establishing
a board is the recruitment of the optimal team. Reluctance
to remunerate for board positions can prevent owners from
attracting the best members.
Not all positions will be remunerated, so ‘paid for’ positions
could be limited and cost effective. Given the purpose and
role they perform, a director’s fee should be considered an
investment, not a cost. The proviso is that any external party
joining the board must be passionate about building a better
business and making it stronger. Members must appreciate
that their role extends beyond turning up for a monthly
meeting. The position requires varying time input and topical
issues will determine which board members need to offer
more of their skills between board meetings.
Most businesses never reach their potential due to a lack of
skill, capital and resources. A tailored, low-cost governance
programme may not solve the world’s problems, but it’s
certainly a step in the right direction.
Aaron Wallace is the co-founder
of Bellingham Wallace; an
accounting and advisory firm
that promises fresh thinking,
expansive strategies and the
insight you need to make positive
change.
www.bellinghamwallace.co.nz
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