I am sick and tired of my board holding me back!

Dear Aunty B,

I have just come out of my first board meeting of the year and feel so frustrated!

My board is made up of major shareholders who are addicted to the dividends that I have fed them year after year.

As a result they don’t want anything to change, even though they know full well that the industry is changing and that we need to embark on a different strategy if we are to keep the company growing fast.

But while they acknowledge everything I say, they seem to have this faith in me that I will work out some way to keep delivering when I can’t, unless we make very big changes, which will mean they won’t get their big dividends for a few years at least.

The task ahead seems enormous and I feel like I am not going to get the support I need to carry it out. My shareholders, although they don’t play any role in the management of the business, have been with me from start-up so I am stuck with them. They also know the business so well and I worry about bringing new directors up to speed.

DT,
Victoria

Dear DT,

Who says you are stuck with them? In business you get the board you deserve. If the board is holding you back then you need to change your board. If that also means changing your shareholders then so be it.

I am not being flippant here. I know entrepreneurs who have faced a similar challenge to yourself. It is very distracting and can be quite political to talk of board renewal. On the other hand you may find that your shareholders, once confronted with the facts that you will be managing a declining company unless you change, may well decide it is time for them to exit. You won’t know without starting the conversation.

The consequences of having a board that can’t see the world is changing and is clinging to the way things were can be very damaging.

You also need to have in your head the names of new shareholders. What will they bring? Have they got the stomach to go on the journey with you? Are they going to add a lot more value than the people you currently have?

Also never forget: a new set of eyes looking over the business with a fresh perspective can do wonders. A great board director can ask a whole new set of questions, introduce you to new networks, paint a different picture of your future and give you a new motivation to go to that next level.

Be smart,
Your Aunty B

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