The 7 P’s of an Effective Private Company Board

Boardroom practices must remain flexible and dynamic for companies to thrive in today’s rapidly changing markets. High-performing Boards are experienced, nimble, engaged, strategic and relevant.

Navigating uncertainties will require a sharp focus on talent, resources, workflow, risk, and crisis management. In 2020, how effective was your Board in helping your organization stay nimble, operate effectively, and remain competitive?  Do you have the right expertise in your Boardroom to fulfill its role of proper oversight and foster short and long-term success?

Effective Board of Directors need to be transformative thinkers helping their companies survive and succeed. We highlight seven topics the Private Company Board should be discussing as they carry out its Company’s 2021 agendas:

1. People –
   1. Have we recruited the right executives in our Boardroom around the company’s strategy and future needs?
   2. Have we made CEO and Executive Leadership succession planning a priority?
   3. What is our strategy to take care of our employees, customers, clients and vendors?
2. Principles –
   1. Are we adhering to our corporate core values as an anchoring device when making strategic decisions?
   2. Should our Board be taking a more proactive approach to understanding, shaping and assessing corporate culture?
   3. Is the Board evaluating our corporate mission, vision and values of today so they are a strong enough guide to support the strategies of the future?
3. Pace –
   1. Are we agile, nimble enough to adapt or innovate?
   2. How do we keep up with technological changes and challenges in our industry?
   3. Does our Board bring the right risk oversight for crisis preparedness and management?
4. Profitability –
   1. Does our Board really know the financial stability of the organization?
   2. Does Audit have a handle on our financial reporting and disclosures?
   3. How is our Board supporting the company’s contingency planning and looking at cash flow?
5. Position –
   1. Is the credibility and character of our Board positively effecting our market position?
      1. Bad corporate governance can cast doubt on your company’s reliability, integrity and transparency which can impact its financial health.
   2. Is our Board providing value by helping our company improve corporate credibility, governance standards and effective financial reporting?
   3. Should we be looking more strategically at board refreshment?
      1. The executives who serve on your Board and the professional network they bring can provide additional resources, advantages in the marketplace and an overall positive company image/position in the marketplace or industry it serves.
6. Posture –
   1. Did our Board provide clear communication and a prompt response to the COVID-19 crisis and social justice movements?
   2. Is our Board having conversations about environmental and social impact?
   3. Is our Board providing proper oversight on racial diversity, equity and inclusion?
7. Pulse –
   1. Is our Board keeping in touch with our Company’s niche market/s, competition or market trends in general?
   2. Is our Board proactive in staying relevant, by expanding their skills as the company continues to evolve?
   3. Is our Board staying connected to our company, its stakeholders, people and community?

Who is on your board and why? Is it time for a more effective, high-performing Board of Directors to support the success of your organization?

Contact HurdMcNally, your trusted source for Board of Director search, selection and placement for privately owned companies in the upper Midwest. Email us at [email protected].