Comments on: Dysfunctional Advisory Boards – A Family of Problems http://www.dr-smith.info/dysfunctional-advisory-boards-%e2%80%93-a-family-of-problems/ Turnaround Management, Senior Adviser, Board Member, Executive Coach, Author, Speaker, Radio & TV Guest & Panel Member Sat, 13 Mar 2010 23:02:03 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ron Wehmann http://www.dr-smith.info/dysfunctional-advisory-boards-%e2%80%93-a-family-of-problems/comment-page-1/#comment-9045 Ron Wehmann Sun, 18 Oct 2009 07:28:12 +0000 http://www.dr-smith.info/?p=170#comment-9045 I like the choice of word in the title "A Family of Problems". The advisory boards with which I have consulted were chosen to advise family based companies. While seeking to showcase an advisory board, what the family was seeking to do was validate their management practices. There was no real interest in changing the course based on the Board's oversight and direction. The "metrics" are all too often to make the CEO feel good about the current direction. If that is the case, don't waste the time or expense. If the equity owners don't want to be challenged they would be better off without a board and the superficial window dressing so often enlisted. <font color="red">Ron, I agree with you about 'family-based companies'. You have to choose your battles. It is best to avoid kamikaze raids on vacant lots. One of my favorite sayings is "you can lead a hotriculture but you can't make her think."</font> I like the choice of word in the title “A Family of Problems”. The advisory boards with which I have consulted were chosen to advise family based companies. While seeking to showcase an advisory board, what the family was seeking to do was validate their management practices. There was no real interest in changing the course based on the Board’s oversight and direction. The “metrics” are all too often to make the CEO feel good about the current direction. If that is the case, don’t waste the time or expense. If the equity owners don’t want to be challenged they would be better off without a board and the superficial window dressing so often enlisted.

Ron, I agree with you about ‘family-based companies’. You have to choose your battles. It is best to avoid kamikaze raids on vacant lots. One of my favorite sayings is “you can lead a hotriculture but you can’t make her think.”

]]> By: David Martin http://www.dr-smith.info/dysfunctional-advisory-boards-%e2%80%93-a-family-of-problems/comment-page-1/#comment-8882 David Martin Fri, 09 Oct 2009 14:46:29 +0000 http://www.dr-smith.info/?p=170#comment-8882 I totaly agree with you : some advisory boards needs to be dismissed and replaced ... lack of interest and lack of indicators. Lot of them, as you say have connections or are on the board due to their network ... Normally, a Board Member must be the brain of the company and the executive, the arms and legs ... Some Board members will be chosen for their knowledge in a specific sectors, but they must be able to understand and care about all process and sectors of a company, not only on their salary and bonuses ... The most critical becomes where the company face a crisis or an unplanned situation ... By being sitted on their chairs, they never think about such situation and don't know how to react quickly and take actions without to much impacts. Or they take decisions without knowing all impacts. Their is so much to say about this real interesting subject, more when you've encountered such situation. I totaly agree with you : some advisory boards needs to be dismissed and replaced … lack of interest and lack of indicators. Lot of them, as you say have connections or are on the board due to their network … Normally, a Board Member must be the brain of the company and the executive, the arms and legs … Some Board members will be chosen for their knowledge in a specific sectors, but they must be able to understand and care about all process and sectors of a company, not only on their salary and bonuses …

The most critical becomes where the company face a crisis or an unplanned situation … By being sitted on their chairs, they never think about such situation and don’t know how to react quickly and take actions without to much impacts. Or they take decisions without knowing all impacts.

Their is so much to say about this real interesting subject, more when you’ve encountered such situation.

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