Dr. Earl R. Smith II

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

Is It Worth the Risk?

I am often asked why I am willing to assume the risk involved in serving on a board of directors. Sure, in the good old days such a position was considered cushy – but no longer.

There is a danger in assuming the position of adviser to a senior management team – particularly when the leadership – and the leadership styles of the team members – make it difficult to organize and manage a board effectively.

But the challenge is not insurmountable – and service on a board of directors can have its rewards. I have served as senior adviser to over a dozen CEOs and, throughout all the battles that have arisen over the future of a company – the prerogatives of the management and board of directors – and the appropriate role of the board as representatives of the shareholders, one thing has remained relatively constant – people of good will have been contending towards a common purpose and, for the most part, succeeding.

Are the risks worth it? If you take your role seriously, see to your education and certification and remember that you are charged with protecting and extending shareholder value – sure.

I don’t want to get into spirituality here – but most of the returns are emotional – the dollars are nice but cracking a difficult challenge and seeing the team win is where it is at for me.

© Dr. Earl R. Smith II

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Related Articles:

• Some Notes on Board Compensation Norms

• Officer and Director Vetting

• The CEO’s role in board member selection

• Determining Board Compensation Structure

• Good Governance – Minority Board Service

• Good Governance – Balancing Eight Key Factors

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Dr. Smith is a proven senior executive, successful entrepreneur, published author and public speaker. He serves on boards of directors and advisory boards or as a strategic adviser to CEOs. Dr. Smith specializes in turnaround management, strategic planning, leadership development and executive coaching. He also works as an executive and/or life coach in the areas of personal growth and spirituality. He is the author of Amazing Pace: Turbo-charged Business Development – a book that shows how Advisory Boards can dramatically increase revenue. Dr. Smith is also the author of Dream Walk: Parables for the Living – a book of Raven Tales and exploration.

This entry was posted on Wednesday, August 13th, 2008 at 6:45 PM and is filed under Governance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.