CEO Advisor Newsletter February 2021
The Value of A Board of Directors
CEOs of privately-held companies typically want a Board that they can trust to support their decisions and help maintain their control over the business. However, as businesses grow, CEOs need more than just loyalty from Board Members. Recruiting a strong Board that fulfills its fiduciary duties, with extensive experience in multiple disciplines, while diving in and playing a key role in driving the business forward is a critical step that requires special expertise.
We've identified seven capabilities and contributions that Board Members should bring to a business:
1. Strategic FocusWhile it may not be the task of a Board of Directors to actually produce the company's Strategic Plan, it certainly is the responsibility of the Board to approve and support it. Too many CEOs try to tackle far too much and need to be kept on focus within the Strategic Plan and Forecast, while driving innovation that will generate a true return on investment.
2. Recruiting TalentIf your Board Members are well-connected, especially within your industry, they will be familiar with top talent. Board Members should introduce, advise and assist you in seeking out top management talent across your business. Nothing is as important to the success of a business as the quality of its management team. 3. Key Business Relationships Board Members should be acquainted with executives and key managers in your target markets. Introductions to potential clients, vendors, resellers, distributors and funding sources is an important factor that helps determine the success of many businesses.
4. Fundraising / Access to Growth CapitalBoard Members should be integral to the fundraising process and should represent real dollar value (by increasing the value of the company in the many millions of dollars in some cases). This includes formal introductions to growth capital sources, attending meetings or conference calls for fundraising, and helping the CEO close rounds of growth capital by connecting with targeted prospective investors, assisting in negotiating Term Sheets, and speaking with investors during aspects of the Due Diligence process.
5. Board Member ExpertiseWhen selecting Board Member candidates, many CEOs look to executives from within their own industry. It is very important that you recruit and maintain Board Members from multiple disciplines, with expertise in your industry, as well as, fund raising, finance, operations, sales and marketing to have a well-rounded Board in order to assist the CEO in critical decision-making.
6. Short and Long Term PlanningWhile it is the responsibility of the Board and top executives to prepare the company for the future, it is also the responsibility of the Board not to lose track of the present. Planning and execution are a critical aspect of every CEO’s role, and the Board of the Directors is instrumental in maintaining that focus on the company’s one-year and three-year plan. Board members must be involved in achieving results today that will support both present and future goals and position the business for an optimal exit. 7. Succession PlanningVery few businesses have a succession plan, whether it is the selection and grooming of a follow-on executive or the identification and planning of an exit strategy. Unfortunately, most CEOs and business owners choose Board Members based on expected loyalty or accept Board Members appointed by investors/stockholders. In doing so, they squander a chance to form and utilize a powerful business asset. Board Members should ensure the CEO’s focus remains on the execution of the current Strategic Plan and a truly optimal exit in the future.
In summary, seek advice in recruiting a Board of Directors as a useful force for achieving the business' goals rather than being a hindrance to success. There are other pitfalls to avoid, so seek experienced, professional help to take your business to the next level. CEO Advisor, Inc. can research, formulate and recruit a Board of Directors that can create tremendous value, while adding depth to your senior management team.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc., for a free initial business consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us today at www.CEOAdvisor.com for more information.
CEO Advisor, Inc. Expands Board Advisory and Board Recruitment Services
For seventeen years, CEO Advisor, Inc. has provided a full range of business advisory services for CEOs, presidents and business owners of small and mid-size companies. A critical aspect of growth and building value is solidifying a strong Management team.
To facilitate the needs of CEOs of small and mid-size businesses in building a stronger Management team, CEO Advisor, Inc. is providing three primary services:
Mark Hartsell, MBA, President of CEO Advisor, Inc. is joining the Board of Directors of software, technology and other companies where he can provide the greatest value.CEO Advisor, Inc. is providing Board Member and Advisory Board Member recruitment services, which are in great demand given the need for stronger management and to ensure adherence to AB 979, the new law requiring diversity at publicly-held companies in California.CEO Advisor, Inc. is also providing Management team recruitment services to assist CEOs in growing their businesses to the next level.
Mark Hartsell, President, states, “The greatest indicator of growth and success is the quality and depth of the company’s Management team. Throughout America, small and mid-size businesses are lacking the needed quality of management, and a strong Board and complete Management team are paramount to a growing company.”
CEO Advisor, Inc. is not only excited about assisting companies with building stronger Boards and Management teams, Mark Hartsell is equally excited about joining Boards to grow small and mid-size companies hands-on. Mark’s qualifications include:
- Advisor to CEOs for 17 Years on all Aspects of Growth, Funding and M&A
- Former Founder and CEO of a Software Company with a Successful Exit
- 39 Years of Business and Management Experience
- 30 Years of Experience in Mergers & Acquisitions
- 25 Years of Experience in Raising Growth Capital; PE Firm / VC Relationships
- Turnarounds, Cost / Expense Reduction; Interim, Fractional CEO and CFO
- Expertise in Management Team Building; Incentive Bonus Plans; Retention
About CEO Advisor, Inc.CEO Advisor, Inc. provides business advisory, growth capital and mergers and acquisition advisory services to effectively meet the specific needs of small to mid-size companies in a wide range of industries. CEO Advisor's mission is to advise CEOs, presidents and business owners with the expertise and focus, coupled with hands-on advice to grow your business to the next level and realize your life’s dream through a successful exit.
Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. to discuss your Board of Director and Management team needs at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.