How to get more from your board

Your board is responsible for making many of your company's most important strategic and financial decisions, but is it performing in the way that is best for your business? Follow our step-by-step guide to get the most out of your board

1. Be prepared to shake up your board. Under the Companies Act, you are obliged to have at least one director, but many companies benefit from having several directors with a range of skills and personalities. It may benefit you to have a breadth of expertise and opinion when important decisions are made.

2. Know your goals before you start. Think about what you want from your board and consider whether your existing board members are doing a good job. If there is friction, a reluctance to make difficult decisions or a failure to act, you should ring the changes. Weigh up whether your business will benefit from fresh faces with new skills and knowledge.

3. Balance your board members. Your board will benefit from having a balance of executive and non-executive directors. Executive directors are employees who have day-to-day involvement in the business; non-executive directors are people from outside the business who attend meetings and functions and offer intelligent advice to the board and the management. They will be impartial and unaffected by office politics. You will need to ensure the person you appoint as chair understands your business, commands respect from other members and listens to them.

4. Understand your board weaknesses. When selecting new board members, consider the issues that are facing your business. If you are struggling to raise funds, for example, look for someone with a strong financial track record. You can find new people from a variety of places - business groups and trade associations, your existing senior staff and your wider business networks can all produce people with relevant experience, knowledge and an interest in your firm. You could also advertise in trade journals.

5. Engage all members. Ensure your board is aware of your key business objectives. It should agree on business strategies, monitor financial performance against the firm's budget, and ensure the company is compliant with legislation. If the board fails to meet these objectives, consider training, fresh appointments or a shuffling of responsibilities.

6. Make time for your meeting. Make sure directors are briefed before board meetings and receive board papers in good time, so that they have a grasp of the issues before they are discussed. Board papers should include the agenda, minutes of the previous meeting and management accounts.

7. Use all resources. Make use of board members outside of the board meeting. They should be available to help with reports, business plans and management accounts, as they have an in-depth understanding of the company. Seek their advice on key decisions such as restructuring.

8. Review your meeting dates. You will probably only need to carry out quarterly board meetings, but be prepared to hold more regular meetings in times of difficulty or growth. Legally, you must hold a board meeting if any director requests one and give 14 days' notice.

Further information

• IoD Director Development - The IoD runs an extensive range of courses, conferences, seminars, development programmes and services specifically designed by directors for directors.
• Directors' Information Gateway (DIG) - Login to this members' only portal and visit the Being a Director section.

_{Published: June 2009
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