A Board of Your Own - Boards make better decisions
Doug Downer - The Franchise Guy ?
Franchise Expert ? Franchising ? Consulting ? Coaching ? Launched, Supported & Helped Grow over 220 Franchise Brands. Now Franchising the Franchise Ready business Globally
Behind every effective CEO, there is a strong board. There are several reasons for this, but more than anything, boards have become a mainstay of corporate governance because it has been proven that the board makes better decisions than any individual.
Professor Stephan Bainbridge of UCLA School of Law authored a research paper titled Why a Board? Group Decision making in Corporate Governance. This study cites group decision-making research going back as far as the 1930s. Bainbridge writes “numerous studies have found that group decisions are not only superior to those of the average member, but also to those made by the very best individual decision maker in the group.”
There are numerous reasons for a small, private business owner to have a Board:
· Family and partner disputes – board members can provide objective analysis that can help resolve these difficult, emotionally-charged challenges.
· Adds legitimacy to decisions – This is especially valued by banks, investors, major clients and employees.
· Provides a broad range of expertise – boards often have advisors in diverse areas such as legal, financial, marketing, human resources and technology.
· Work on the business, not just in the business – board meetings provide the opportunity to focus on the business strategically, instead of constantly getting caught up in day-to-day events.
I am always happy to have a phone conversation and chat to you about how you can become a franchisee of The Alternative Board and facilitate your own peer advisory boards and make a real difference to lives of Australian business owners. Give me a call on 0413 284 824.
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7 年Great article, Doug. Found this really useful, thanks for sharing!