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Giving Your Board A Focus

You’ve created a board for your company. Now what? Here’s how to give your newly-founded board some focus and direction.

Carl Bates

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Assuming you’ve been successful in your quest for growth by gathering the right balance of executive, non-executive and independent directors with both commercial acumen and governance understanding, now what?

You may be faced with the task of embarking on a journey of governance yet feel ill-equipped to decide what to do next. The board, once formed, becomes a unit that operates as a whole.

We-recommend-tickWe recommend: Greg Tinkler On Managing Business Breakups

This requires some start-up activities to formalise new relationships and provide direction. Here are ways you can take that next step:

Get to know each other

A high-performing board is built on the foundation of effective relationships, which take time to develop.

As a team you evolve and deepen your mutual understanding and respect with each board meeting.

The start of this journey can be enhanced by getting to know each other outside the board room and by assuming that you are all in it for the long haul, and therefore invested in each other’s success.

Agree on a governance methodology

Each director and executive will have his or her own opinion of what governance means and how one should go about its effective implementation.

In agreeing on a single comprehensive methodology, you ensure that all directors share the same picture of what they are responsible for and what a high-performing board looks like.

Without this agreed framework in place, precious time can be wasted arguing procedure rather than unlocking value. Stick with the methodology you choose.

Formalise the terms of engagement

Clarify what it means to be a high-performing director in your company and formalise your board culture and the expectations you have of each other in a board charter.

This policy sets clear principles on board values, such as trust, respect, and candour, and scope and functions.

This should include meeting frequency, minute-taking procedures, voting rules, and specific responsibilities bestowed on the chairman. It should become a governing or guiding document to support the board.

Even though the annual board evaluation process holds directors accountable for the terms agreed, the board should hold itself accountable to this charter in every engagement.

We-recommend-tickWe recommend: Successful SA Entreps Share Their Most Valuable Business Advice Ever Received

Give management appropriate power

In a privately-held company, the executive team members are most likely familiar with making their own decisions and not having to follow a set of ‘rules’ provided by a board. Ironically, this is one of the areas of greatest positive impact that a newly formed board can make.

In providing specific guidelines on what management can or cannot do without board approval, known as a delegation of authority, there is an immediate reinforcement of sound decision-making.

Maverick business leaders may balk at having to explain their rationale or having their plans questioned, yet this should strengthen the company and the maturity of its decision-making.

Plan the year ahead

Governance brings with it a whole new drum-beat for a business. There are many new things to consider and implement in the early stages. Planning is critical in establishing a new business cycle that builds momentum and gets the process flowing.

As such, it is highly valuable to agree board-meeting dates for a year in advance and plan the themes and focus areas for each board meeting in a way that supports the natural cycles of the business. For example, if your financial year-end is February, approve your business plan and budget prior to this date.

We-recommend-tickWe recommend: 5 Business Lessons From Billionaire Mentors

Before you can approve your business plan you need to have an agreed strategy.

Planning each of these steps into your calendar, when most appropriate, ensures a comprehensive approach while establishing momentum and energising progress.

Carl Bates is a global entrepreneur, speaker, author, mentor and director. Currently based in South Africa, he is a dynamic entrepreneur from New Zealand who guides small to medium businesses to achieve Extreme Business Success.

Strategy

There’s More To Team Management Than Leadership

When you’re running a business you need to ensure that your employees are on your side, helping you to make profits. Giving them job security, taking them seriously and treating them with respect, will go a long way in enhancing loyalty and productivity.

Henry Sebata

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The staff that work for you determine:

  1. How happy your customers are with your business
  2. The quality of the things that you sell
  3. The costs that you incur to sell your products and services
  4. Your risks – the things that can go wrong and how much it costs you

All of these things determine your profitability and how competitive your business becomes. How do you ensure that everyone is on the same side and helping you to make profits?

At work everyone believes that they are getting something (such as money) and are giving something in return (such as time and effort). They are weighing up in their mind “how much am I giving, how much am I getting in return and is this fair?” If they believe that they are:

  • Giving too much or
  • Getting too little
  • Then this is unfair, and they won’t work well (poor productivity – how much they produce).

Related: Why Innovative Employee Benefits Are Your Competitive Advantage

The manager needs to:

  • Know what people are thinking about what they are giving and getting and
  • Manage the giving or getting side
  • So that people become more productive

In a smaller business you sometimes cannot afford to pay more or provide the sort of benefits (pensions, medical aid, bursaries etc.) that larger firms can and so the staff may be unhappy, not be productive and be on the look-out for something better.

How do you increase happiness without money?

Everyone wants:

  1. Job security – knowing that you will still have a job next year – and that you will get paid on time.
  2. Contributing to the success of the business. If you train staff to have the knowledge and skills to do a better job and you then encourage and support them to do this then they are happier, and you increase profits. If you then share some of these profits with the staff that helped you to make them then everyone wins!
  3. To be taken seriously and treated with respect. If you do this then staff are happier, and they will also treat your customers with respect.
  4. To be part of the team. You can often do this by having a regular briefing on what your plans are and discussing ideas. Because staff are doing the actual work they will often have good ideas and then will be motivated to implement them – it was their idea after all!

Staff leaving you all the time is a can destroy significant value. If you implement the strategy above, you will have happier staff that are more productive and a more profitable business.

Read next: Understanding Your Responsibility As An Employer

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Strategy

Jeff Bezos Reveals 3 Strategies for Amazon’s Success

One of the richest men in the world shared his leadership tips for running a company.

Hayden Field

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“It remains Day 1.” That’s how Jeff Bezos, founder and CEO of Amazon, signed off in his 2018 letter to shareholders. He’s been propagating the “day 1” mantra for decades, and it’s meant as a reminder that Amazon should never stop acting like a start-up – even though the company now boasts more than 560,000 employees and more than 100 million members of Amazon Prime, the company’s paid service for free shipping on select items.

Here are some of the most useful nuggets of wisdom Bezos shared in his letter and during a recent onstage interview:

1. Standards are contagious

Bezos says he believes high standards are teachable rather than intrinsic. “Bring a new person onto a high standards team, and they’ll quickly adapt,” he writes. “The opposite is also true.”

If a company or team operates with low standards, a new employee will often – perhaps even unwittingly – adjust their work ethic accordingly.

He also says that high standards in one area don’t automatically translate to high standards in another – it’s important for people to discover their “blind spots.”

Related: Executive Director Hasnayn Ebrahim’s 5 Rules For Strategic Growth In Your Business

Try making a list of your duties, then ask trusted colleagues to tell you which responsibilities are your greatest strengths. If certain things from the list don’t come up during the conversation, it might be useful to think about how you can up your personal standards in those areas.

2. Set clear, realistic expectations

If you’re looking to raise your standards in a particular area, the first course of action is to outline what quality looks like in that area. The second is to set realistic expectations for yourself – or for your team – regarding how much work it will take to achieve that level of quality.

Exhibit A: You won’t find a single PowerPoint presentation at an Amazon company meeting. Instead, teams write six-page narrative memos to prepare everyone else for the meeting.

Bezos says the quality of the memos vary greatly because writers don’t always recognise the scope of the work required to reach high standards.

Related: Jeff Bezos: 9 Remarkable Choices That Shaped The Richest Man In The World

“They mistakenly believe a high-standards, six-page memo can be written in one or two days or even a few hours, when really it might take a week or more!” Bezos writes.

3. Stay involved with the people you’re serving

Whether you’re selling a product or service, it’s a good idea to make sure you never lose touch when it comes to the people you’re serving – no matter how high up the ladder you climb.

Related: Lichaba Creations Founder Max Lichaba’s Inspiring Journey To Entrepreneurial Success

Bezos says he still reads emails from his public inbox (jeff@amazon.com) as a way to keep his finger on the pulse of what’s happening with Amazon customers.

He says he believes focusing on what customers are saying is much more important for success than focusing on what competitors are doing, and he often compares customer feedback to company data to see where they misalign.

“When the anecdotes and the data disagree,” Bezos said at a recent leadership forum at the George W. Bush Presidential Center, “the anecdotes are usually right.”

This article was originally posted here on Entrepreneur.com.

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Strategy

You Don’t Have To Go It Alone: How To Find A Mentor As A Freelancer

Need a mentor but don’t know where to start? These tips can help you find your perfect mentorship match.

Yu Liu

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As a freelancer, having enough time to not only grow your business, but also grow your career can be challenging. Who can you turn to for guidance when you’re the boss? For those who strike out on their own, putting time and effort into finding a mentor (or several) can make a huge difference in establishing a successful freelance business.

Among small business owners who have professional mentors, the five-year survival rate for their businesses is 70 percent, according to a survey by BCSG; among those who don’t have mentors, the five-year survival rate is half of that.

Now that you’re settled into the new year, it’s the perfect time to reach out to your network (or establish a new one) and find a group of mentors. Here are some tips for identifying those who can help you achieve your personal and professional goals.

Related: Vusi Thembekwayo Launches Entrepreneurship Mentorship Programme

Evaluate your strengths and weaknesses

As a freelancer, it can be challenging to find the time to step back and examine your professional strengths and weaknesses. While it can be tempting to rely on a mentor to give you guidance on where you need to improve, you’ll get much more out of any mentorship relationship if you’ve done some self-reflection first.

As a first step, consider taking a few minutes to complete a skills evaluation test, such as Myers Briggs or 16Personalities.

Both will provide you with a detailed explanation of your personality, including analysis about workplace habits, relationships and ideal career paths. The results will help you understand how you interact with clients and colleagues, as well as what types of careers and working styles are likely to be a good fit for you.

If you need more help determining your working style or how to achieve the next step in your career, a career coach could be a great investment. Finding the right coach can help you develop a strong understanding of your own personality and work style. Once you know more about yourself, you’ll be able to better identify mentors who can help you play to your strengths and improve upon your weaknesses.

Form relationships through networking groups

you-dont-have-to-go-it-alone-how-to-find-a-mentor-as-a-freelancer_forming-relationships_embedded

Once you’ve had time to reflect on your professional needs, it’s time to find a mentor. As a good first step, look into virtual and in-person networking groups where you can meet people in your industry.

Networking groups and programs, like Entrepreneurs’ Organization, allow you to connect with other freelancers and business owners so you can learn from what they’ve experienced over the course of their careers.

This can help you find a mentor who’s also gone through the challenges of becoming a freelancer.

The location of your potential mentor can be a determining aspect as well. Having a mentor that lives close by gives you access to knowledge of the local trends and makes it easier to scheduling a quick chat. Meetup.com offers access to thousands of organisations around the world in sectors ranging from outdoors and adventure to fashion and tech to writing. If one event looks interesting, take the time to attend and talk to the other participants. One (or more) may have helpful insights for your career.

Keep in touch with former colleagues and associates

Just because you’ve decided to strike out on your own doesn’t mean you can’t still rely on former coworkers, bosses or other working relationships that you developed before becoming a freelancer.

Those you’ve worked with in the past are already familiar with your working style and approach to business, which is helpful context for any mentor/mentee relationship.

Make sure to keep in regular contact with former colleagues, especially those you admired when you worked together, so that you can use each other as a resource for professional questions or opportunities. Haven’t been in touch for a while? Reaching out can be as simple as sending your congratulations about a new job or reminiscing about an old work memory, but it can go a long way toward helping secure a valuable mentor.

Releated: All The Business Wisdom You Need From 4 Famous Entrepreneurs

Seek out people who inspire you outside your professional realm

Inspiring mentors can come from unexpected places, not just your professional bubble or your fellow freelancers. Take a few minutes to research interesting organisations in your local area, perhaps through volunteering, and get involved where you can.

Other volunteers might come from unique backgrounds and work in different fields or industries, so their points of view can provide you with unexpected perspective that may help you think about a challenge or client differently. A mentor from a different field has a unique opportunity to see your business from the outside and won’t be bogged down by conventional solutions.

Finding a mentor is one of the most valuable investments you can make for your future as a freelancer and for your personal work enjoyment.

Mentorship makes a difference all the way to the top – 71 percent of CEOs said having a mentor directly improved their company’s performance according to a study in a book by Suzanne de Janasz and Maury Peiperl.

Beyond the financial returns you can see from mentorship, having advisors you trust can make freelancing feel less overwhelming and more rewarding. So, make sure to put yourself out there and start building your mentor relationships.

This article was originally posted here on Entrepreneur.com.

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