Book Excerpt


comprised of their great mates who ultimately aren’t going to challenge them at all,” continues Alastair. “Then it’s like the Pied Piper of Hamelin; you all end up running into the sea together.” Irrespective of the number of people in your team or on your board, it’s generally beneficial to have at least one dreamer, one doer and one cynic:


The dreamer – often the entrepreneur, the initial instigator and CEO. This individual’s vision will drive the business, giving it its character and culture and garnering support in the market. Think Richard Branson at Virgin, or Steve Jobs at Apple.


strong and compatible management team and a board of directors with the right mix of executive and non- executive skills. Here are some of the more common mistakes that are made along the way:


•Trying to do everything at once. •The easy and convenient appointment of friends and family. •Over-promoting people before their long-term value to the business is known. •Giving away equity too early or to people that will not have a long-term role in the business. •Trying to put square pegs in round holes – e.g. taking your top salesman and promoting him to a management role.


•Failing to look in-house for top talent. •Poor internal communication – don’t forget to tell people what’s happening. •Lack of clarity over roles and job descriptions. •Poor recruitment, interview and induction processes. •Lack of training.


Identify the skills


and qualities Building a management team or a board of directors means that you must first identify the skills, disciplines and qualities you are seeking. I divide these


18 entrepreneurcountry


into five areas: corporate necessities, business disciplines, leadership qualities, personality and track record. Let’s look at each of these in turn:


Management apostle Peter Drucker, aka ‘the father of modern management’, saw management as “the organ that converts a mob into an organisation, and human effort into performance”. In order to maximise performance and organise that ‘mob’, teams require a set of complementary, but often very varied, skills.


These skills should include a balance of attitudes and opinions, a balance between believers and challengers.


We’ve already discussed the


importance of building a strong foundation and broad base. That goes for the leadership too. For example, Alastair Lukies of Monitise says that you need to be able to look to your right and your left and, “as far as you can see both ways, be able to see people who believe in your vision and then set off together. My board has set my horizons much wider, rather than much taller”.


However, your believers shouldn’t just march blindly beside you. They should challenge you too.


“Too many people I know set up a board


The doer – often the COO or MD and the trusted confidante of the CEO. This is the individual that makes things happen, the person with the drive and organisational skills to bring ideas and concepts to fruition and manage the efficiency and effectiveness of the wider team.


The cynic – often the FD and the voice of reason in the team, challenging the thinking and considering the risks, both financial and otherwise, to the security and well-being of


the


business. This may also be a role for a non-exec who can often bring an objective, third-party view.


Having a team with these core traits means that your business will benefit from healthy debate and a filtering system where each person has to be convinced that a particular decision, strategy or action is the right way forward.


Disclaimer By necessity this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Article correct at time of writing.


Smith & Williamson LLP


Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.


A member of Nexia International.


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