Selecting board members is an important process when creating the structure of your business.
Choosing the right members of the board can give you access to experience and significant industry connections. Both of these things can improve your ability to grow.
Many businesses opt to fill their board with friends and family; however, you should be looking for people with certain skills and experiences to fill the roles of board members.
But exactly what do board members do, and how to do you hire board members for your organization?
In this article, we’ll discuss board members and how you can hire the right ones for your company.
What Are the Responsibilities of Board Members?
Before you select your board members, it is vital that you understand exactly what board members do.
The executive management team within your business is there to deal with all of the day-to-day aspects of running your organization; the board of directors might include experts in the field from outside of the company.
The specific duties that the board will be responsible for will usually be specified in the company bylaws. These duties may include:
- Determining the company mission
- Electing or recruiting CEOs and senior management
- Providing oversight of plans and policies
- Deciding on the financial direction of the company
There is a definite distinction between directors and advisors. If someone is sitting on the board in a directorial capacity, then they will have a fiduciary responsibility to the organization.
Hiring Board Members for Your Organization
When hiring board members for your business, there are some qualities that you should look for.
You need to be sure that you are getting someone that has the right levels of industry experience and interest in your organization, and who will commit to the required levels of time and effort.
Some of the things that you should be looking for in your board of directors should include:
- Competence – your board members, should all have a level of competence and understanding of the field that your organization operates in
- Experience- each of your board members should have a valid experience that will be of use to your organization
- Enthusiasm – everyone on your board should want to be there
Board members make decisions that impact the entirety of the organization. Having the right decision-makers in place is fundamental.
Selecting Your Board Members
When hiring board members, think about how you will remunerate them. Many bigger companies will pay their board, while smaller companies might provide shares in the business.
Look for board members who can complement the existing team, and that can help the organization to raise funds. Be sure that you keep your board to a manageable size though.
How Centennial Can Help Your Business
Finding the right board members is essential. Having the right experiences and competencies will ensure that your organization is going to grow and develop.
Centennial can help you find the right board members for your business. Get in touch today to find out more.