From several readers of my book it has come to my attention that not everyone reads the Notes at the end of the Book. I have included in the Notes both the references to quotes as well as some additional reflections that, while important, I did not feel contributed to the flow of my Letters. One in particular (Note 31) deals with Boards of Directors and I will reproduce it here as I think it contains some interesting guidelines for Board formation.
“Lessons to keep in mind with boards: (1) Always build a board that is bigger than you need. (2) Strongly opinionated executives with a proven track record are good to have on the board—as long as you have several, and they respect one another. Their opinions will balance and optimize the outcome. The critical factor is not their individual strengths but the composite. (3) Even the board member who at times seems most difficult and “marginal” makes a contribution at the right time. (4) Management of the board requires a strong CEO and a strong chair. Good teamwork between CEO and chair is critical. (5) Follow the key “rule of 3” to attract a board member: First, get the person excited about the vision; second, assure the candidate that association with your company will never tarnish his or her reputation (this assurance is best done by pointing to who else has agreed to serve; and third, be super-respectful of board members’ time. (6) Do not shy away from internal referrals when looking for new board members. High quality attracts high quality. The power of “interlinking” is healthy.”