If you own a business, you may already have a formal or informal board providing you with good advice and good governance to help you with your growth strategy. If you already have a board, now may be the right time to consider your options for 2020.
Boards, advisory bodies and mentors are all essential for delivering experience-based insight when you are starting out, growing, or taking your business to the next level.
But when does a good board become a great board, and how do you know when you’re getting the best possible advice for you and your business?
Several factors make a good board great, and sometimes routine and ordinary requirements can make a significant difference to your performance.
Attendance. It might sound like ticking a box, but if your board members attend every meeting they will be up to date, demonstrating a commitment to the role and a belief in what you’re doing.
Trust and Respect. Your board members might disagree on proposals and directions, but if they are mature enough to accept different opinions, understand what others are trying to say and are prepared to mediate, compromise or change their mind, the board will operate more effectively. Being able to listen and respond respectfully and trusting the opinions of experienced nominees means your board will thrive.
Diversity. Research continues to show that diversity of thought, gender, cultural background and age contributes towards better decision making, recognising the need to take different and informed opinions into account.
Skills. Every board needs a range of skills and experience. That can mean recruiting people from different industries and backgrounds, university-educated or from the school of hard knocks.
Corporate governance. A good board will ensure that your business gets things right, operates within its constitution, is answerable to stakeholders and complies with legislation. You don’t want to get that one wrong.
Accountability. Yes, your chief executive makes the daily decisions, but ultimately, the CEO is accountable to the board. The board must also be accountable for the overall direction of the business.
Independence. If you own a family business or indeed any other operation, it would be helpful to have a team of advisers or board members who are not all related, who can give impartial advice and take a birds-eye view of operations.
In challenging economic times, a board can provide fresh ideas, help re-establish growth strategies, and plan for the future. It can advise on where and what to cut. Experienced board members may have seen it all before and can advise on how to navigate through the storm or the fog.
Business SA has recently appointed four new board members to strengthen our strategy, governance and operations as we build our next strategic plan. Our new board members are KPMG SA Chairman of Partners Justin Jamieson; Detmold Group Executive General Manager of Sales, Sascha Detmold Cox; Global Intertrade Managing Director, Manuel Ortigosa; and former Australian Institute of Business Chief Executive Joel Abraham.
South Australia’s business environment is dynamic and forever changing. Our new board appointees will be a great asset as we do our bit to steer the state towards stronger economic growth.
This article was originally published in The Advertiser's South Australian Business Journal on Tuesday, 3 December 2019.
Martin Haese is Business SA’s chief executive.