I started this blog because I found myself in a position where a business relationship that had been going rather well was summarily terminated. I don't have the best knowledge of html and web design so I opted for a blog. My inspiration for the blog came from Fred Wilson's blog. Fred is a tech VC based in New York City and he is incredibly prolific. Fred showed me that you could mix business and personal interests in a blog and I started out trying to do that. I don't have the same posting ethic that Fred has, so I typically write about BEE-related issues, but I might throw in a few other things, like my family, music or myself into the mix on occasion.
I'll come back to Fred at the end of this post.
I come from a strong public relations background and learned from working with Lesley-Ann van Niftrik at Image Communications that PR is often more effective than advertising. So I tend to go for press releases and I have been quite successful in the last few years.
Yesterday I achieved the zenith of my PR programme - I was quoted by the Business Times in their headline article Vodacom cuts off Ngcuka. This is a result of a structured PR campaign that Lesley-Ann designed for me.
Thank you for allowing me this little indulgence - now back to Fred.
Fred has been in the VC world for many years and has a very mature insight into all sorts of businesses, and he is not shy to share his experiences. He posted this on what he looks for in board members - I think these principles are very applicable to the South African environment.
There are a few comments at the end of Fred's post - I recommend you read the original post and also subscribe to the blog.
Thoughts On Choosing Board Members
I am a professional board member. I've been sitting on boards for almost 20 years and I've seen a lot. I've seen some of the best board members in action and have tried to copy them. I've seen some of the worst board members in action and have tried hard to forget them.
Here are some thoughts on choosing board members. This advice is for everyone, but it's of particular use when you are a bigger company, maybe public, and need to fill your board with good people.
- Avoid "big names" For the most part, they are useless.
- Select people who will attend each and every meeting, who will pay close attention to the business
- Select people who have an affinity for your business, who understand your challenges and your opportunities
- Avoid putting someone you can control on your board. In tough situations they will have a fiduciary duty to do what's right and you won't be able to control them when it matters most to you.
- Don't let conflicts get in the way of selecting the ideal board member. Conflicts will be disclosed and can be managed. Many times the people who will understand your business best are conflicted in some way. There are ways to deal with this problem.
- Make sure to have an experienced accountant/auditor on your board and have them run the audit committee. That is no place for amateurs.
- Make sure to have at least two or three CEOs of comparable companies on your board. Make sure they are on the comp committee. Compensation issues are best handled by people who understand the talent market.
- Select people who have the time to do the job right. Being a board member is a job. It's not a retirement perk. If someone cannot commit to attend each and every meeting and to spend at least several hours a week on your company, they are not the right choice.
- Select people who will get along with each other. The very best boards I am on are friendly social active groups. Serious business doesn't have to be stilted and formal. It can and should be fun.
- Above all else, look for great judgment and ethics.
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