This Fast Company article includes two subjects. One is about what it takes for a founder to succeed. The second is what it takes to build a board that contributes positively. The topics are not mutually exclusive in either subject or solution but to be honest I am not so sure there is all that much "there" here. And, because the title and a few references in the article speak about a "rock-star" board I am left considering more the subject of exactly what is a "rock-star" board. I don't believe the article specifically answers this question nor even asks and answers the why this is even a goal.
But is having a rock-star board a goal? First of course we must discuss the rock-star title. Rock stars are just that - folks who have a public that loves or admires or at least listens to. A founder certainly wants a board that can be admired certainly from the outside (e.g. funders). But do they want a board that they will listen to? My experience says "not-so-much". As a matter of preference, I find founders mostly want head-nodders in the affirmative of them and individuals who might go raise resources to serve the founder's interest. Still then a rock-star? I think this a misdirected goal. Something to consider.
Anyway, here's the Fast Company article. Oh, and "Anchor Method? Well, if this helps ok but I'm not super-impressed - not really news or a method for that matter.
Six ways to build the best board of directors and boost your business
Embrace the opportunity to grow the surround sound of support for your business as it grows with a rock-star board of directors!
I am lucky enough to live in Silicon Valley and there is a myth here that all it takes to build the next multi-million dollar success story is a visionary leader and a blank check. The truth is that the process of building a business is difficult to navigate without the right advisors in your corner. In my experience, investors know that behind every successful founder is often a stellar board of directors guiding them. You’ll likely need to show that you have strong advisors in your corner before they sign that first check.
A great board of directors can be the difference between you building a successful operation and a downright disaster. If you think I’m being hyperbolic, here are three examples that showcase the side effects of a poorly assembled advisory team: Meta, WeWork, and Theranos.
As a seasoned board member and startup founder myself, I know the idea of establishing or changing the makeup of your board can be daunting. There are so many myths surrounding the board-building process that it can be hard to know where to begin. For example, founders sometimes tell me that they’re afraid of eventually getting ousted by their board, or that they don’t have access to the right people willing to serve on a board—I believe these are all concerns that arise in part due to misinformation.
DEMYSTIFYING THE BOARD-BUILDING PROCESS
The overwhelming need to demystify this process is one of the reasons why I co-launched The Impact Seat Foundation with our Founder and Board Chair, Barbara Clarke. As a seasoned economist, advisor, board member and investor, Barbara decided to create her own comprehensive guide for founders who need and/or want a support system: the ANCHOR method, featured in her book Build Your Board, Build Your Business. The ANCHOR Method is a string of assessments designed to guide you through the process of examining your business goals, your own strengths as a leader, and the makeup of your board of directors or advisory board.
GET IT TOGETHER WITH THE ANCHOR METHOD
The ANCHOR method is broken down into six subjects, each addressing a key element of board-building success: (self) assessment, networking, communication, honoring legal duties, organization, and refreshing your board.
What’s the ANCHOR method, you ask? Here’s the 411—It’s all about:
Assessing your identity in leadership. When you build your board, make sure you know yourself and your leadership style first so you can include board members who have complementary skill sets. For example, I tend to be more of a visionary and “big ideas” person—I might source people who are more analytical and administrative. I make decisions quickly; others need more time. Understanding what you bring to the equation of the board means you can make beautiful math together as a new addition.
Networking to establish your board. Diversity is not just a buzzword. Studies show that diverse-led firms are more innovative and profitable. Ideally, your board will bring more perspectives to the table. I’ve found when you have folks from different walks of life, different ages, different geographic locations, and so on, you can generate more ideas and problem-solve more effectively.
Communicating with your team. Board members can sense if your team is not sharing data regularly enough for them to parse. I’ve also certainly been on boards where attendance became an issue. It’s important that your board shows up for you when and where you need them. I like to mix it up and have both individual conversations with board members as well as establishing a regular (quarterly at a minimum) formal meeting.
Honoring your legal duties to keep your business protected. Every board has bylaws and it’s important that folks understand the legal requirements of participation. I’ve seen board members use the bylaws to manipulate the outcome of conversations. My rule of thumb in general is to keep your business on the up and up because trouble will catch up with you eventually if you aren’t careful.
Organizing your team and getting your ish together can make all the difference. What do your board processes look like? Does the board only speak with the CEO, or are there opportunities to hear from other staff members? I find it’s helpful to send board materials for review at least a week or two in advance and to pre-schedule board meetings at least a quarter ahead.
Refreshing your business and renewing your outlook. Serving on different kinds of boards can give you ideas to share with colleagues. I have served on both non-profit and for-profit boards. While there’s a lot of overlap, each board’s composition and behavior can give you insights that can help on other boards. I always recommend that those in the c-suite join other boards.
Whether you’re a nonprofit, for-profit, early stage, or anywhere along your journey, here are a few resources I highly recommend to help level up your board and business:
- Boardsource provides tactical support and resources on board governance for nonprofits
- World Class Boards helps with the onboarding process for new board members with their comprehensive video guides
I know from personal experience how powerful a board can be in helping founders and CEOs accelerate revenue and reputation. Embrace the opportunity to grow the surround sound of support for your business as it grows with a rock-star board of directors!
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