Once I was asked by an SME owner to help set up a board of directors. When I asked why the board was needed at the time, his answer was revealing. “I want to apply for funding. I have been informed when you have the board of directors, you stand higher chances.”
A board should not merely be ceremonial. It must be progressive and value-adding. In today’s technology-driven business models of ecosystems, platforms and
A ceremonial board cannot win. It is for mere window dressing – to the public and partners, the company has aboard. However, in reality, the board is not adding value instead it is a cost driver in terms of sitting allowances. Don’t establish a board of directors as a necessary nuisance.
Good boards aim at governance excellence. To add value. To empower and support the CEO and the executive team to win. To mentor. To see and provide insights which the executive does not have due to lack of experience and over-focus on the internal issues. Boards help the executive remain to focus on the bulls-eye – the business strategic outlook for long-term success.
Copyright Mustapha B Mugisa, 2020. All rights reserved.