180 likes | 313 Views
SCALE Your Business with an Advisory Dream Team. My Credibility What is a Board of Advisors ? Beginning the Process The SCALE™ MODEL Selecting your Board Compensating your Board Associating your Board into your organization
E N D
My Credibility • What is a Board of Advisors? • Beginning the Process • The SCALE™ MODEL • Selecting your Board • Compensating your Board • Associating your Board into your organization • Leveraging your Board for maximum growth, effectiveness, and ROI • Evaluating, Evolving, and Exiting your Board • Mistakes to avoid with your Board of Advisors • Be careful what you wish for • Connect with Marissa
My Credibility • Information Experts: 2012 • Office-based • Approx. 50 FTEs, as well as PTEs and consultants • Full suite of strategic communications, education, HC services, interactive, and conference planning/event mgmt services • Tactical and strategic • 17 agencies; commercial presence • Sales = $15 million (approx forecast) Information Experts: 1995 Home-based One employee Instructor-led training Documentation Online help Tactical Small telecom client base Sales = $34K
What is a Board of Advisors? A group of people you rely on for unbiased advice, insight, opinion, expertise, & accountability. NO FIDUCIARY RESPONSIBILITY. 5 Stages of Boards Assembly of professional advisors Assembly of friends and family (not recommended) A shared Board Hand-selected Board Extension of #4
Beginning the Process • Reach out for help from those with experience • Solicit recommendations for Board members • Identify your desired outcomes • Accountability • Business development • Mentorship (for CEO and for team) • Process implementation or development • Gateway to contracts and introductions otherwise unreachable • Expertise in specific programs, certifications, or set-aside programs • The Board is an extension and representation of your brand.
The SCALE™ Model 5 Phases of SCALE™ Selection of your board Compensation of your board Association of your board Leveraging of your board Evaluation, evolution, and exiting of your board • “I don’t know how to find good candidates.” • “I don’t know what or who I need.” • “I don’t know how to pay my Board.” • “I don’t know what to expect from my Board.” • “I don’t have time.” • “My business is too small for a Board.” • “This is going to cause waves in my company.” • “I get plenty of good advice from lots of other people.” • “I’m not ready yet.”
Selecting Your Board Who exactly do I need? What should I look for in a Board member? What should I avoid? Where can I find my candidates? What should my mindset be? How do I vet, connect with, and recruit my candidates? • Narrow your selection to no more than 6 participants. The more you have the more you need to manage and compensate. • A Board is fluid and will change depending on what your company needs at any given time. This is why short-term agreements are best. • Map your needs to your desired solution, and then to potential Board members that can help you implement that solution.
Compensating Your Board • Don’t recommend giving equity away. • Stay away from potential Board members who insist on equity. Your needs should be first in their mind – above their own needs. • Want to compensate fairly and in alignment with the size of your firm. • Their time, experience, and reputations are valuable. If leveraged correctly, they can make a quantifiable impact on your bottom line. • This is an investment, not an expense.
Compensating Your Board - Monetarily • Per-Meeting Fee • Annual Retainer • Commission structure for business development efforts • Other direct costs (ODCs)
Compensating Your Board – Non-Monetarily • Reciprocal Board service • Provision of products or services in exchange for Board service • Donation to a charity, participation in a charity event, commitment to a Board position for a non-profit/philanthropy organization
Compensating Your Board – Equity • Risky • A Board is fluid/dynamic • May jeopardize current certifications or eligibility for certifications • Raises red flags for certifications • Dilutes your ownership which may impact ability to do profit sharing with employees • Expensive • Significant legal and tax implications
Associating Your Board – Making It Official • Required • Board Member Letter of Commitment • Non-Disclosure Agreement • Optional • Board Manual • Non-compete agreement
Associating Your Board Into Your Company • Board implementation requires a strong change management strategy. • Although external, it impacts internal operations. • The CEO must communicate often and clearly about the progress of the Board, and how it will impact the company. • The CEO must anticipate reactions and resistance. • Important to allow access to the meetings, as well as mentorship opportunities for the leadership team. • Goals: • Make the company as comfortable and as trusting as possible with the board. • Make the board feel like a true extension of the company.
Leveraging Your Board • Providing mentorship • Expanding business development/sales team • Accessing people and customers • Using their name as a competitive advantage • Standing up new offices, functions, or practice areas • Pursuing certifications, grants, set-asides • Overhauling or implementing key processes • Connecting with other strategic partners • Evaluating whether to outsource core functions or keep in-house • Making recommendations for service providers, and evaluating proposals
Evaluating, Evolving, & Exiting Your Board • Evaluate • Set performance benchmarks and measure against them • Implement standard assessments and self assessments • Evolve • Constantly scout and recruit Board members (like employees) • Exit • Roll off Board members with exit interviews • Always keep an open door • Board service is a gift. Always show appreciation and keep all doors open. • Treat the Board process as an employment recruitment and exiting process.
Mistakes to Avoid with Your Board • Understand the difference between leveraging and exploiting. • Don’t waste their time. If you aren’t ready, don’t engage. • Don’t fail to follow through. They’ll give you action items. You will be on the hook to deliver.
Be Careful What You Wish For • Are you really ready for the changes? Are you braced for what’s coming? • What will change: • Your personal role • Your employees • Your customers • Your marketing strategy • Your BD strategy • Your IT infrastructure • Your financial infrastructure • Your recruiting strategy & HR infrastructure • Your culture • Your advisors
Connect with Marissa • http://www.linkedin.com/in/marissalevin1 • www.twitter.com/marissalevin • www.twitter.com/Success_Culture • www.twitter.com/InfoExperts • www.facebook.com/marissalevin • www.facebook.com/InformationExperts • www.klout.com/marissalevin • Find me on www.plus.google.com • PLEASE OPT IN FOR MY COLUMN ON CULTURE & LEADERSHIP: www.successfulculture.com