Expert Advice from Dr. J. Robert Beyster

Question:

I have never thought that I would need a board of directors for my company, but I am beginning to see the potential benefits of bringing in some outside opinions, while hopefully improving my network of potential sources of capital and business expertise. What are some of the things I should expect from a board of directors?

Answer:

Governance is not a common word in the vocabulary of many small business owners and managers. However, in these days of Sarbanes-Oxley and fast-changing business markets, a good board of directors can be a real asset for a fast-growing company. Not just to keep it out of legal trouble, but also to provide the kind of resources that a typical small business owners cannot provide him or herself.

According to Dr. J. Robert Beyster, founder of Science Applications International Corporation (SAIC) and author of the book The SAIC Solution: How We Built an $8 Billion Employee-Owned Technology Company (John Wiley & Sons, 2007), there are many good reasons for creating a board of directors, including their standard governance roles in the areas of management, fiduciary oversight, and business strategy. However, says Dr. Beyster, a board should also fulfill four additional primary objectives:

• The first—and perhaps most important—objective is to protect your company’s unique values and culture. In a fast-changing business environment, your board can and should be the bedrock that helps keep your values and culture intact.
• The second objective for any good board is to bring top people into your management team, with specific experience operating other companies like yours.
• The third objective is to work to recruit other talented board members—especially those who can help the company win new business, acquire senior employees, and secure sources of necessary capital and funding for growth.
• The fourth and final primary objective for the board is to help with succession planning. By helping a company identify and develop talented leaders, the board will play a very major role in shaping the company’s future.

For further information, you can contact Dr. Beyster at www.beyster.com