Hot Topics: How Private Company Directors are Focusing Their Time

Directors’ experience is the most valuable resource they bring into the boardroom and to leverage this they need to use time with management effectively.

Our panel of experienced private company directors from different industries will discuss how their boards are spending their time as their companies face various challenges. Topics for discussion may include: 

• Business Strategy: What opportunities should the company pursue? Should the company develop all its products internally or consider acquisitions to accelerate growth? Does it want to reach customers directly or does it need partners for distribution? Do the products need to be perfect when released or will customers work with the company to improve the product? What technology or industry changes could disrupt the company’s strategy? 
• Human Capital Strategy: How fast can the company grow given its current employees? Does it have the right management team for the future? Is there a succession plan for the founders if they cannot grow with the company? Should it recruit experienced managers from larger companies, or will the company lose its entrepreneurial culture? Will public company employees accept the compensation structure of a private company?
•  Financial Strategy: How much equity does the company need to finance its growth? Should it prefund multiple years of growth and dilute the equity of the founders or raise as little capital as possible? Is the board willing to forgo profitability to finance rapid growth? What cushion is needed in the event of an economic downturn or supply chain disruptions? 
• Exit Strategy: What is the exit strategy for the company? What is the timeline for investors and the management team? As major decisions are made does the board consider their impact on the eventual exit strategy? 
• Board Relationships: What weight is given to the different voices in the boardroom – investors, founders and independent directors? How has this changed as the company has grown? Are new directors needed to bring in new skills?