Why and how to create your own board of directors?
The world is becoming more complex, uncertainties are increasing, and what we thought we knew must be reconsidered. With ever more complicated legislation, and with the needs and concerns of everyone constantly evolving, how can we adapt, anticipate, and ensure the long-term viability of our businesses in this uncertain climate?
Today, securing the future of a business requires a wide range of skills and the expectation of relevant and well-reasoned decisions. So how can we ensure that decisions are always made in the best interest of the company? How can we address daily emergencies while remaining confident about the future?
For a boss, alone at the head of his company, it is difficult or even impossible to achieve this because it is the role of a board of directors.
The board of directors' mission extends beyond simply demanding and controlling. It is there to support and assist operational management in achieving its objectives by providing its expertise, skills, advice, and networks. The board of directors and its independent directors provide the impetus and create opportunities for growth.
Therefore, choosing members requires careful consideration. But before asking ourselves who we want around the table, we must first determine what their role will be.
The board of directors focuses on the company's long-term viability. Its primary concern is the long-term vision. However, it also takes action in times of crisis. Given the current period of instability, it is crucial to recruit individuals with extensive professional experience who can make sound decisions. The abrupt transition from a health crisis to a war has significant economic and social implications. The world is evolving ever more rapidly, and our ways of working together are constantly being challenged. Adaptability and foresight are becoming essential qualities for navigating these challenges. The board of directors is there to identify opportunities beyond these issues, to navigate between risk management, agility, and the right strategic approach.
Technological adaptations:
Today, the question is no longer whether to digitize, but how? The Swiss Federal Act on Data Protection (FADP) is currently under review, with compliance requirements that companies must meet. And let's not forget the explosion of cybercrime. How can we integrate these new elements into our organization? How much should we, can we, invest, and for how many positions? Which solution should we choose? Who should we work with?
Including an IT expert on your board of directors means gaining considerable expertise. It means being guided and reassured on all these sensitive issues.
Even more innovation:
How can we respond to and anticipate the new needs of our customers? How can we build customer loyalty? What do we need to invent?
What are we prepared to change? Will the company's vision impact the evolution of its products and services? For example, pressure regarding sustainability issues will inevitably influence the company's offerings. It must be able to rethink its offerings, integrate a coherent vision of its overall environmental impact, and how it addresses it.
What about humans?
Managing employees, their working conditions, and work-life balance are also important issues. How can we ensure they share the company's values and vision? How can we help them embrace it? How can we help them identify with the company? Management is also undergoing a revolution, and failing to consider the needs of your employees risks losing them quickly.
And the environment:
What has the company implemented so far, and what does it want to achieve in the future? Zero waste, zero paper? Minimizing travel? Producing locally? What can the company afford? What budget is allocated to it? What is it willing to give up?
In addition to crisis management, these are some of the issues that boards of directors must address. But how can you ensure that members are impartial and focused on the company's needs? The solution: include independent directors! At APIA, we provide competent independent directors from various fields to meet the needs of Swiss SME leaders. So don't hesitate to contact us to establish or simply supplement your board of directors.
APIA Swiss Team
March 2022