When it comes to accelerating the growth of a business, a well-chosen advisory or governance board can be a game-changer. But not all boards deliver the value CEOs and shareholders are looking for.
In fact, over the years, I’ve seen boards that have dramatically shaped the trajectory of companies—and others that have, unfortunately, fallen flat.
So, what separates the impactful boards from the rest? It really boils down to two critical factors: the people at the table and the quality of the conversations.
Here’s how to ensure your board delivers the insights and accountability your company needs to thrive.
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Get the Right People on Board
The people you invite onto your board can either elevate your company to new heights or hold it back. Experience is the key ingredient here.
I often say, “You don’t want people learning on your job—you want people who’ve already been there, done that, and got the T-shirt.” Ideally, these individuals have faced similar challenges at least a dozen (or 14!) times before.
The best advisors bring:
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- Battle-tested wisdom: They’ve navigated successes and failures in their careers, giving them a 10-year head start on the challenges you’re facing today.
- Strong networks: They know the people you need to know and can make those connections when it matters most.
- Scar tissue and success stories: They’ve weathered tough decisions, from multi-million-dollar mistakes to high-stakes wins, and are ready to share their lessons learned.
Think of them like a seasoned Sherpa guiding you up Mount Everest—they’ve summited the peak countless times and know every pitfall along the way.
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Focus on the Right Conversations
Even with the most talented board members, the real value comes from what you talk about. Too often, boards waste time on routine updates or low-stakes decisions (like debating carpet colors for a new office).
The magic happens when you tackle strategic discussions that impact the future of the business—decisions with a three-year or longer horizon. These could include:
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- Growth strategies
- Potential acquisitions or partnerships
- Filling key leadership gaps
- Expanding into new markets
- Capital investment decisions
As one CEO put it, “If we’re not leaving these meetings with clearer direction and bigger ideas, we’re doing it wrong.”
Practical Tips for CEOs
Making these conversations impactful requires preparation:
- Plan ahead. Outline the key decisions or questions you want to address before the meeting.
- Share materials in advance. Provide board members with the data, context, and your initial recommendation so they can come ready to contribute.
- Foster debate. Encourage your board to challenge your thinking. The best discussions come from rigorous debate, not passive agreement.
One CEO I worked with created a list of their dream board members—leaders they deeply admired. They started making calls and to their surprise, three out of the first four said yes. The lesson? Sometimes, all you need to do is ask.
The Ultimate Formula for an Effective Board
Building a powerful board is all about two things: getting the right people in the room and creating space for the right conversations. With these elements in place, a board can become one of your company’s greatest assets.
The Challenge
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- Who could bring 10x value to your board?
- And how can you create space for the meaningful, strategic discussions that will drive your company’s success?
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