Dr. Earl R. Smith II

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

My work with boards - both for-profit and non-profit - often involves an assessment of a search for new leadership. Strong, focused leadership is an essential part of any organizational success. This is as true for boards of directors as it is for senior management teams. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Leadership is a critical factor in the functioning of a well-organized board of directors. Every board (organization) should strive to diversify the composition and have overlapping layers of expertise to call upon in any given situation. Good governance stresses the need for each director to attend seminars to enhance their leadership development skills. CEO’s engage their senior managers in one-on-one and peer-to-peer coaching programs to prepare for an orderly transition of power. Succession committees meet regularly to identify future talent and future skills the company will need to train or recruit for as the company moves through the business cycle. All of these efforts address the issue of leadership. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Board of director responsibilities are increasingly being scrutinized in the face a new round of financial mismanagement and high profile corporate failures. The Sarbanes-Oxley Act of 2002 attempted to address many issues to inhibit corporate finance mismanagement, however many corporations did not correctly align directors pay with both appropriate corporate financial management and with reaching the corporation’s strategic goals. Corporate director’s actions, loyalties, corporate director pay, and ethics are being reviewed. This process is driven by issues raised by Congress and the media. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Boards of directors have the responsibility of preserving and extending shareholder value and holding the CEO and management team accountable for developing and deploying strategies to deal with a dynamic market. Smaller corporate governance often overlooks a very important part of this responsibility - risk governance. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

The Nomination committee advises the board of directors regarding new board members. It has the power and authority to change board composition which in essence will change how the board functions as a unit. The Nomination committee must work year round with regular meetings, necessary resources and members with insight into how the board works. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Task oriented directors are very focused and committed to reaching the goals and objectives set out in the corporate strategic plan. These directors are very detailed oriented in defining the steps necessary for corporate management to undertake to reach their objective. Boards need task oriented members to function at very high levels with a tight focus on the goal. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Directors and CEOs alike want extraordinary results from their company. Inspiring leaders lead people, managers manage employees. Leadership development entails learning to inspire ordinary people to achieve extraordinary results. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Director and Officer Insurance (D&O) was first introduced to the market to cover directors and officers of for-profit corporations, and unlike general liability insurance standard language is generally not available. The issue of determining what cover is actually provided is a difficult task unless the customer has a basic understanding of the particular language and the specific use is has in the insurance business. There is a wide variety of policies available, but a non-profit organization should look for the following distinctions which make some policies far superior to others. A detailed assessment of individual polices with a trusted insurer will reveal the following coverage distinctions: Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Non-profit boards of directors are rarely compensated for their governance. However, the practice is growing, slowly, due to the increased demands, increased regulations, and greater financial oversight responsibilities of non-profit board members. Boards of directors should review their mission and the time commitments expected of board members. The single biggest factor a board should consider relative to director compensation is whether any amount of compensation will increase the effectiveness of board governance. Read the rest of this entry »

By Dr. Earl R. Smith II
DrSmith@Dr-Smith.com
www.Dr-Smith.com

Few decisions made by a board can alter the functionality of a board more than new board member selection. The Nominating committee is one of the three most powerful committees a board usually establishes in the course of normal business. The Nominating committee must consider a candidate’s business affiliations, business experience, educational attainment and leadership style during the interview phase of the vetting process. The board of director’s duty is to the shareholder and to returning acceptable returns in the form of long-term value. New board members should assure the Nominating committee of their commitment to the organization’s corporate ethics and strategic plan, as well as, their loyalty to the organization itself. If a candidate has other loyalties of more importance, the Nominating committee should be comfortable with the arrangement or not recommend the candidate to the full board. Read the rest of this entry »