Accountability has big role inbusiness
It’s not a good look for the owner of a company to put their feet up on the desk and expect everyone else around them to do all the work. Owners need to do their bit to ensure their company’s success. But who makes sure the owner is actually doing a good job? Who keeps them accountable?
In most companies, owners are accountable only to themselves. They can basically do exactly what they want, when they want. This is certainly the case in the early stages of a business as the owner drives things along and is in charge of nearly everything. But as a business grows, it becomes more complex, the financial risk increases and the future strategy become more involved. When this happens, the business can quickly outgrow the experience and knowledge base of the owner.
When you find yourself running out of ideas on how to control and grow your increasingly complex business, it’s time to get others on board. You need a brains trust to help you understand what is happening in the business and the market so you can decide what to do.
This is where an Advisory Board becomes useful. Owners can surround themselves with people who have expertise they lack. After all, no-one can know everything. A good leader knows what they don’t know and finds people with the knowledge and experience to fill the gaps. Running a business can be dark and lonely work and it’s reassuring to be able to share the load with a group of people you can trust.
In most companies, owners are accountable only to themselves. They can basically do exactly what they want, when they want.
The purpose of an Advisory Board is to monitor and interpret the financial information monthly and debate the issues facing the business. Advisory Board members provide a sounding board for owners to bounce their ideas and future strategy off.
Owners can see through the eyes of others how their decisions have impacted or will impact on the company. A group of experienced and interested business people can contribute a perspective which should ensure poor decisions are made only once or not at all.
Advisory Board participants do not make decisions – this is the job of the owner. They ask hard questions, make suggestions and debate issues to enable owners to make well-informed, better quality decisions. The discipline of reporting each month to an Advisory Board also maintains structure and accountability.
An Advisory Board is a good first step to eventually establishing a Governance Board of independent members who collectively and democratically make decisions about the strategic direction of the company.
Grow your business to its full potential in 2016 by surrounding yourself with people who know what you don’t know.
To help stimulate business ideas and direction it’s a good idea for business owners to draft in the expertise they lack.