Going public with an organization comes with a multitude of advantages. Predominantly, it means an increase in available capital, further visibility, and access to a wealth of lucrative business partners, etc. Alternatively, going public means opening a company up to an array of risks. Of course, there’s a matter of the high price, a big…
It’s entirely justifiable for a board of directors to be discernably picky when looking to add some new blood. Of course, there’s always a chance that a board member doesn’t necessarily fit in the long run—even after following all the correct recruitment protocols. But that’s a different subject altogether (and one we might broach at…
It’s only natural for people to become set in their ways. And grouping a bunch of people together into a collective (i.e., a board of directors), can increase the stubbornness tenfold. It’s not entirely uncommon for organizations – starting at the top – to follow procedures because ‘that’s how they’ve always been done.’ No matter…
With technology growing at rapid rates, organizations in all industries are open to an array of pathways yet to be traveled. Now, this is quite positive. Businesses benefit from previously inconceivable opportunities to increase profits. Unfortunately, it’s not all good news. The world is an increasingly complicated place—and as tech grows at a lightning pace,…
When the board of directors of an organization signs a document with wording implicating that they are in favor of the proposed resolution, it’s called a circular motion. Companies with established procedures will utilize circular motions instead of passing a resolution at a convened board meeting. Circular motions are appropriate for routine resolutions that rouse…
The work of a board of directors is accomplished through an array of smaller groups within its sphere. Boards commonly leverage standing, ad hoc, advisory, steering, and executive committees to ensure optimal efficiency. Every board of directors needs to be diligent about assessing their committee structure. For instance, in a leaner organization, limiting the number…
Environmental, social, and governance (ESG) issues have to do with investing in a business that sustainably and ethically impacts the world. It’s sometimes synonymous with socially responsible investing and impact investing. Regardless of the terminology, in 2019, companies must operate in a way that benefits the environment and communities. On top of that, these organizations…
For the most part, when a board of directors alters business operations or procedures, there’s some form of preceding written motion. However, ad hoc and in-the-moment diversions from company standards can happen when obtaining the consent of all present board members. This method of veering away from an organization’s usual standards and practices is known…
One study from Duke University shows that 80% of all US companies have been hacked in an attempt to steal or alter data. In 2019, breaches that damage a company’s image and shareholder value are an almost monthly occurrence. It’s not that these organizations ignore cybersecurity. These risks are a top priority of many companies,…
When a board meeting runs too long, it can be detrimental to your organization for several reasons. First and foremost, it throws off schedules. On top of that, the more extended the meeting, the less engaged its attendees. It’s an inefficiency that stems from poor planning, communication, and execution. Conversely, board meetings that end in…