Unique Original Articles » Building a Better Board of Directors/Advisors

I had the pleasure of attending the Owen Entrepreneurship Breakfast hosted by Vanderbilt's Owen School of Management this morning. The panel was fantastic; made up of Bruce Lynskey, Jim Usdan, and Debra Fish. The open floor discussion covered the process and ideas behind building a better Board of Directors or Board of Advisors for your company.

Of course, there were a lot of things discussed that can be passed off as common knowledge but listening to real stories and experiences solidify those thoughts with me.

Below are my bullet-point notes:

Build a board based upon your company's weaknesses
Do not rush building a board with a startup
Members should have real world experience in your industry and specifically with the weaknesses that you are trying to fill


Do not fill your position with people who gained their "experience" from serving on similar boards
Advisory Board seats are most effectively filled by "connectors"


There is little difference between an AB member and a paid consultant. The AB member is will to accept stock options as payment :)


Make finite relationship rules very clear from the on-set
Get a commitment from them for a certain number of hours per quarter, so their expectations are in line with yours
For both types of boards, be clear at the beginning and continue to reinforce your original message throughout the relationship. This includes items that would end the relationship.


Prior to a board meeting, have a preparation meeting for any management that will be present to make the board's time effective


The main tasks for a board is to hire, develop, and/or fire the CEO

...thus protecting the shareholders
KEY POINT: The best companies are the ones that have the absolute intention to be a great independent company.
Let the VC's/Investors worry about your exits
Simply concentrate on building and sustaining the best company in your industry


If something else happens: great! But don't build your company around that.

The panel was made up of three diverse viewpoints on this topic and it made for a great discussion.

Ms. Fish is a corporate psychologist who helps companies plan for building their boards.

Mr. Usdan is a former serial entrepreneur, serial board member, and currently venture capital partner.

Mr. Lynskey is a Clinical Professor of Management in Entrepreneurship at Vanderbilt's Owen School as well as an experienced start up entrepreneur.
BigWebApps HelpDesk solution provides help desk solutions
Article Source: JS2 Article Submission Software