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Advisors Advise. Directors Direct.

Posted on March 3, 2012 by liz.weber

Manager’s Corner:

Advisors Advise / Directors Direct

By Liz Weber

I thought I’d take a moment to simply clarify the difference between Advisory Boards and Boards of Directors. People often believe they’re one-in-the-same and use the terms interchangeably. In reality, they’re very different entities. Both are valuable, but they wield different levels of power.

Boards of directors are typically elected by the shareholders or members. In small firms, boards of directors are usually comprised of the business’ owners and family members. In larger organizations, the boards are comprised of interested individuals from disparate backgrounds and industries that – theoretically – represent the organization’s customer or membership base. A board of director’s responsibility is to guide the overall direction of the organization and to be the ultimate decision-making authority on strategic matters facing the organization. The company president or CEO reports to the board. The board of directors has voting power and has full authority to override the decisions of the President or CEO. The board can hire and fire key staff – including the President/CEO. A board of directors directs the actions of staff and of the organization.

Unlike their more commonly-known cousins, the boards of directors, advisory boards are typically comprised of individuals who – individually – are providing counsel to the business owner. These individuals may be attorneys, accountants, business consultants, human resources specialists, marketing professionals, etc. Each provides expertise and guidance to the business owner separately. An advisory board simply provides a way to pull these various advisors together on a monthly, quarterly, or semi-annual basis. Then, as a group, they can discuss the issues facing the company and can often determine quick solutions to strategic company issues. These advisors are not elected and they have no voting power. They are asked by the business owner to serve as a member of the advisory team. They are paid for their services on the advisory board as the board is usually a continuation of their current services. Their job is simply to advise.

I often suggest to my smaller clients that they start an advisory board when they’re not yet comfortable with the idea of expanding or creating a board of directors for their company. Remember: Advisors advise – Directors direct. Determine what’s right for your organization. Then let them help you lead your organization to success.

Copyright – Liz Weber, CMC – Weber Business Services, LLC.
WBS is a team of Strategic Planning and Leadership Development Consultants, Trainers, and Speakers. Liz can be reached at info@wbsllc.com or (717)597-8890.
Additional FREE articles can be found at http://www.wbsllc.com/articles.shtml.

To obtain permission to reprint this article send a request to ReprintLiz@wbsllc.com. The request must include when and where the article will be published and confirmation that you will include the complete attribution above including the live link.

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Boards Should Do Board Stuff

Posted on February 17, 2012 by liz.weber

Manager’s Corner:

Boards Should Do Board Stuff

By Liz Weber

I’ve heard the same question from three Board Presidents over the past few weeks:

So how do we make sure we implement the strategic plan we just completed?

My answer: That’s your job as the board president. Make Strategic Plan updates a regular part of your monthly or at least quarterly board meetings. Put it on the agenda; then address it. If you don’t track it, monitor it, and coordinate with the CEO and others as appropriate to make sure action is being taken, who will? Your CEO may – or may not. If your strategic plan is not important enough to you to track, why bother to develop one in the first place?

Now, I do believe I know why these board presidents are really asking the question: They don’t understand what their job as a board – and specifically – a board president is. Boards of directors are supposed to give direction to the CEO or administrator. The boards are supposed to determine strategy based upon their expertise and ability to see the big picture because — now pay attention to this part — they’re not wrapped up in the day-to-day management issues of the organization. This is where many boards run into problems. The board president and members are often too involved in the day-to-day management of the organization.

Because many organizations have limited or weak management, many boards “get really involved” in the business, and often end up being “doers” and “wannabe managers.” They then stumble over themselves and the “real managers’ on who’s doing what, and they lose sight of what they’re supposed to be doing as a board: determining strategy, monitoring and providing direction to the CEO, tracking the financials, and planning for leadership succession. Who has time for that when you’re involved with determining vacation schedules with staff?

So what can a board do?
- Let management do its job. Get out of the way. Stay out of the day-to- day management issues.
- Find stronger managers/leaders if necessary who are capable of handling the details so you can focus on board issues.
- Remember, the management team works for you – you don’t work for them. If you’re doing things the managers should be doing, become aware of it, make them aware of it, and start doing your respective jobs.

Boards should do board stuff. Managers should do management stuff. It tends to work better that way.

Copyright – Liz Weber, CMC – Weber Business Services, LLC.
WBS is a team of Strategic Planning and Leadership Development Consultants, Trainers, and Speakers. Liz can be reached at info@wbsllc.com or (717)597-8890.
Additional FREE articles can be found at http://www.wbsllc.com/articles.shtml.

To obtain permission to reprint this article send a request to ReprintLiz@wbsllc.com. The request must include when and where the article will be published and confirmation that you will include the complete attribution above including the live link.

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Directors Direct. Managers Do.

Posted on February 3, 2012 by liz.weber

Manager’s Corner:

Directors Direct. Managers Do.

By Liz Weber

Recently a colleague asked me for advice to help him with one of his clients. My colleague’s been working with this particular client for several years, but it’s getting to a point of frustration where my colleague’s ready to walk away. The manager — or as my colleague now calls him — The Teflon King, is incredibly skilled at deflecting responsibility and accountability. He’s also amazingly skilled at bamboozaling the board of directors by not bringing issues to their attention that would show mismanagement on his part, pushing work and decisions to the board that he and his staff should be addressing, and protecting his inadequately-trained and rude staff. Instead, he seems more comfortable in some type of peacekeeper role — i.e., he prefers to help keep everyone and everything appear smooth and efficient, while all heck is breaking loose with the customers because of his mismanagement and his staff’s poor customer relations and work.

The board is comprised of volunteers — all interested and well-meaning — but not professionally skilled or trained in this respective industry either. The manager and the board were all given their respective positions by the organization’s owner — who, has limited day-to-day interest in the organization’s operations. He trusts the management team and the board.

My colleague has been working with the board and has developed a good working relationship with its members. However, he’s had limited success in getting them to fully comprehend the ineffectiveness of the manager and its subsequent negative impact on customer relations and the long-term negative impact on their entire organization. My colleague is stuck. What should he do to help the board guide this organization towards greater effectiveness?

My suggestion to him was: Instead of making it sound personal — i.e., you against the manager — why don’t you make your suggestions and recommendations to the board position-oriented? Clarify with the board, what their role and responsibilities are and what the role and responsibilities of the manager and each of his key staff positions are.

For example, the board of directors’ role is to direct – through policy discussion and vote – what direction the organization should take in the future. The board’s task is to discuss and analyze the big-picture issues that will allow this organization to grow and thrive into the future — or which may threaten it. The board — which only meets once each month — does not have the time to debate issues affecting daily operations and rather basic customer issues. The board should be holding the management team accountable to ensure the daily operations are conducted smoothly, effectively, and efficiently — with care given to ensure the customers’ concerns and needs are addressed. The manager, on the other hand, is responsible for the day-to-day operations of the organization. Also, given the staff’s daily interaction with customers, their services, and other vendors, the manager is responsible for bringing to the board specific suggestions for policy discussions, analysis of the ramifications of each suggestion presented, and recommendations for action — based upon their experience with the daily operations and industry. Also, the manager is the point person to ensure his staff is properly trained, responsive, and effective in representing the organization to the customers and media. The manager and his team do the leg-work for the board; it shouldn’t be the other way around. The manager works for the board. The directors direct,but only after the manager does his job.

If the board is taught to start focusing their time and efforts to more effectively fulfill their responsibilities, by default more legwork, information, and accountability will be pushed to the manager and his team. It will take time, but doing the job they’ve been asked to fulfill, the board will start to better understand the importance of also holding the manager and his staff accountable to effectively fulfill the jobs they’ve been hired to do. However, when directors direct and managers do, incredible things happen in organizations. It just requires work, focus, and a willingness to be responsible and accountable.

Copyright – Liz Weber, CMC – Weber Business Services, LLC.
WBS is a team of Strategic Planning and Leadership Development Consultants, Trainers, and Speakers. Liz can be reached at info@wbsllc.com or (717)597-8890.
Additional FREE articles can be found at http://www.wbsllc.com/articles.shtml.

To obtain permission to reprint this article send a request to ReprintLiz@wbsllc.com. The request must include when and where the article will be published and confirmation that you will include the complete attribution above including the live link.

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