Management Resources Guide

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ENGAGE RIC WILLMOT TO BE A MEMBER OF YOUR BOARD What Makes a Great Board Member? Judgment is a must. In many ways, it is the job of a board member. A board member with solid judgment keeps your organisation out of trouble and helps you navigate difficult situations. They can help you make the right decision about strategy options, hiring and firing, financings, M&A opportunities, legal issues, organisational design questions, and more. If you have a board member who doesn’t have the experience and gravitas essential to good judgment, you are doing yourself, your company, and your shareholders a severe disservice. Relevant Context. A great board member needs to have relevant context to offer actionable and on-point advice. There are four key areas of relevancy: Industry – Sometimes it’s a good idea to have one board member who is from outside your industry for perspective. I have been engaged to sit on a number of boards because of my objectivity and to bring critical and alternative viewpoints. Even though as an outsider I may not fully comprehend all the nuances of an industry when decisions have to be made, I do so with alacrity using the best insights possible. Business Model – There are many subtleties in any given business model. These nuances can greatly impact strategy, accounting/finance, cash flows, etc. Stage of Business – This is more important than it might seem, and is also a driver for board changes over time. Just as different stages in a company’s development may require different executives, the same is true of board members. A Fortune 500 CEO isn’t usually a great choice for a startup, just as a former CEO who ran a $50M company may not be great for another that has reached $100M and is still growing fast. You want board members who have seen the movie before and have a pretty good idea of what is around the next few corners as your business grows. Function – It helps to have board members who have expertise in functional areas import to the business (i.e.: development, sales, marketing, finance, international operations, etc.) to share foresight about future challenges and opportunities your company may face in their respective areas of expertise. Wisdom is essential when making critical decisions and thinking strategically about the future. Both wisdom and judgment are usually the results of many experiences in tough situations, some failure, and sharp intelligence. For example, M&A activity as either a buyer or a seller is one of the most challenging situations for a board. It’s difficult to be a wise board member who can give valued and thoughtful counsel about an M&A transaction if they have not been through several themselves. MBA courses and avid consumption of Barbarians at the Gates or the like is no substitute for having sweated out a few tricky negotiations. Motivation and Interest. Board work is hard work. There can be a lot of meetings, especially with committee duties, homework, and times when very difficult, delicate, and challenging decisions must be made, often concerning people. CEOs need and deserve an engaged board member who is always motivated to look out for the company’s best interests and actively promotes those interests at all times. Being a great board member means being an active evangelist in the ecosystem, sharing your network, and being cognizant of opportunities to promote the company. It also means being actively engaged. I am familiar with a company that 111
MANAGEMENT RESOURCES GUIDE is currently experiencing some very serious leadership and execution challenges. It has a very well-known, even famous, lead board member. As a consultant to this organisation, I can see what’s coming and that this company’s future is in serious jeopardy, but the lead director isn’t addressing the issues — it’s not even clear he sees them. Don’t confuse fame or stature with being engaged, motivated, and committed. Style. A board member’s style should be compatible both with that of the CEO and with the other board members. It does not mean they always have to agree or be best friends. It does mean that they know how to communicate effectively with each other, constructively address issues, and be civil yet still direct and transparent. Ultimately, you need your board to be able to collaborate and work well together. Coach, Mentor, and Sounding Board. An often under-appreciated role for board members is that of coach or mentor. A great coach or mentor doesn’t usually tell you what needs to be done or how to do it. In Socratic style, they ask questions and pose challenges designed to help the CEO see problems that they may not have identified, to look further ahead than the CEO may be currently, or to encourage a different perspective. Board members in this role should also be good listeners, offering the CEO a sounding board to test ideas, concerns, etc. Often, because the CEO doesn’t have anyone they can turn to inside the company for various sensitive issues, they need a person that is involved, but also somewhat removed from the day-to-day activities, to bring fresh but applicable perspective. Courage. Board members need to have the courage of their convictions, as well as the courage to face up to hard truths. Board members must make tough calls when the answer isn’t always obvious and when there are considerable consequences if the call is wrong. A specific example from my past: while I was a CEO, our auditors pushed hard to complete expensive, invasive and, in my opinion, unnecessary audit work. This was during 2003 when there was a great deal of witch-hunting, lawsuits, and debate about board members’ personal liability. Most boards ran scared and allowed accounting and legal firms to run amok with excessive zeal and commensurate fees. The head of our audit committee could have rolled over and protected herself by allowing the over-reaching work, blaming it on transparency. Instead, after many well-thought discussions with me as the CEO, she did what was right for the company and the shareholders, and refused to support the excessive audit activities and associated fees (which would have cost several million additional dollars). Her experience told her the work scope was unnecessary and wasteful, and she had the courage of her convictions to support my advices to the board and also say “No”. “Ric has been an inspiration to myself and those members of my team at Kafrouni Lawyers that have worked closely with him. His qualities of being "no-nonsense" and a "straight shooter" are qualities I desire in business dealings. As a member of my firm's board of directors and management committee, he frequently expressed views on issues concerning all aspects of growing a unique legal practice. Most of the time, he was able to present views that were very innovative in approach - "outside the square". Ric is very passionate about helping people. He is also very respectful of others and their opinions. I look forward to working with Ric on two major projects for my firm. With his significant input and influence, I am sure they will be a great success.” — Joe Kafrouni, Kafrouni Lawyers If you wish to discuss engaging Ric Willmot to be a member of your board, contact him directly by telephone: +61 412.728-113 or email: ric@mba4day.com to arrange a mutually convenient time to have a conversation. 112
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The Executive Wisdom Management Res
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Tools and Resources by Ric Willmot
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CONTENTS WHY INVEST IN LEARNING & D
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WHY INVEST IN LEARNING & DEVELOPMEN
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GLOBAL LEARNING FOR A GLOBAL AUDIEN
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EXECUTIVE WISDOM IN-HOUSE TRAINING
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Page 70 and 71: GLOBAL LEARNING FOR A GLOBAL AUDIEN
Page 90 and 91: TYPICAL CLIENT RESULTS Here are som
Page 96 and 97: MENTORING & COACHING For those who
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Page 122 and 123: SOME OF OUR CLIENTS 113
Page 124 and 125: ABOUT RIC WILLMOT Ric Willmot assis
Page 126: HOW TO ENGAGE RIC WILLMOT & EXECUTI
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Management Resources Guide

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