Squandered Opportunity!

Posted in Board Development by Jim
16 Sep

In the local paper today there was an article in the business section about a local tech company that was sold for a fraction of its former value.  All I could think was, what a squandered opportunity!  This instance could clearly be laid at the feet of the Board of Directors since they represent the shareholders.  The company was not a victim of market conditions, it is in Technology Outsourcing and Development.  This is one of the hottest industries over the past 30 years.  It was not because the founder steered the company into the ditch, the founder retired years ago.  It is simply because the Board did not do their job. The company is 1/6th of their size in revenue and break even profitability. The company did not invest their board development.

These are the easy companies to identity squandered opportunities, but how about Microsoft? Last week, Steve Balmer announced his retirement.  The stock went up almost 8% the following day.  I guess the investors felt that Microsoft had squandered their opportunities.  Since Blamer has been CEO revenues have risen to record levels along with profits, but the investors felt there could have been more.  Hard one to call.  The hardest thing the Board of Directors ever has to do is force out the current CEO who has not failed or succeeded in their/shareholders eyes.

A great Board of Directors can’t always avoid every market challenge but they surely will not sit by and let management squander real opportunities. Developing an effective board is a culmination of many factors; identifying the skills and experience that best suit the company, recruiting from a pool of qualified candidates, compensating members accurately, and continuing to develop the roles and responsibilities of the board on an ongoing basis. Build a Board of Directors that will guide your company to success by strategizing on board development.

Make your Board GREAT!