from eCommerce Times.com 4/05 enhanced by Peter/CXO Wiz4biz
When? Let’s say that the time has come for your Startup to take the next step for launch, or growth & credibility. The wide wisdom of a Board of Directors will help you with these. Whatever the reason, a properly constituted board of directors is critical to the success of your company.
How Many Board Members? My feeling is that, in most cases, a board of of eventually eight (8) is sufficient. This number is based on specific specialties in which your board members should have some competence. If you get much beyond eight members, my experience is that the board becomes too bureaucratic and unwieldy. This can reduce its effectiveness and its ability to respond quickly to crises or opportunities as they arise. Too small and you’re not getting a wider view of your industry & your possibilities or you may be weak on experience. Start with a few and add them as you need them. I’ve tried to put them in the order that you would add them – by Categories. [Wiz4biz]
Categories. The following is a list of possible categories for your board members. It is not etched in stone, but it is, in my opinion, a somewhat common array of board member specialties.
1. Insiders. All boards that I know of have a certain amount of insiders. The fact is your company needs insiders on the board. They portray to the board the mission of the company, its inner workings, and its current problems & opportunities. And, if you are a member of senior management and/or a majority stockholder, you certainly want and deserve representation on the board. Two insiders is a good number because management will get the representation it deserves, yet the other board members won’t feel overwhelmed by too many insiders.
4. Technical. It is so important to have someone serve on the board who is totally familiar with the workings of your industry. This person preferably has important contacts in the industry and can assist the board & management in any technical & strategic decisions.
5. Marketing, is absolutely necessary to help you grow. This person should know the industry from a marketing perspective and should be able to strategically advise the board as to new marketing directions, including new products & services.
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