Entreprenership and its Board.
Entrepreneurs should focus to build a board to direct their company. Through an effective board they can take their business to the next level. Remember the boardroom hierarchy, the CEO reports to the board. Hence an entrepreneur who built the organization should take initiative to get skills of a director and eventually become the Chairman of the company. Be ready to embrace the collective wisdom and enhanced discipline.
When a startup company forms a corporation, the founders are generally the first shareholders because their money and effort created the business. They own it. They function as the board of directors and appoint themselves as executive managers. The leader of the founders becomes chairman of the board and chief executive officer. Other members of the founding group take executive director positions or executive management positions such as chief operating officer and chief financial officer in addition to their directorships.
Think long term and recruit directors who can govern the company you aspire to grow into. Have at least one director who understands boards and governance. Don’t rely solely on the lawyers and accountants to have governance skills.
Establish a clear job definition for directors. Insist that all directors recognize their duty to the company as a whole, rather than play a limited role of safeguarding the interests of one shareholder. Build a team that possesses a range of skills and diverse backgrounds in order to get different perspectives on each strategic discussion.
Make sure that all directors know how to assess issues from the perspective of the stakeholders and what is right for the company. Seek consensus on all decisions to get collective wisdom, not always relay on majority voting.
Be clear about the differing roles of the chairman and CEO, it is better to separate them in to two persons. Remuneration to directors required to pay a fair and responsible equivalent.
