The benefits of joining and serving on a company board can be enormous, but not at all obvious. The unexpected benefits can, and often are, the most beneficial reasons for serving on a board (or a board committee assignment). Let's take a quick look at these unexpected but rather predictable types of benefits - particularly within the context of a private board or advisors in a localized private company setting (a great place to start).
- Credibility and Reputation - Whether a paid or an unpaid board position - serving on a board distinctly promotes personal credibility and advances ones professional/civic reputation in the community. The reality is - serving on a Board comes with a given level of prestige whether earned (one hopes) or not. Board directors/advisors can be a combination of deeply experienced and newer board members they may have more time/ambition for more involved committee assignments or more directly involved with the day-to-day operations of the business (also known as an "Executive Director").
- Opportunity Wealth - As your credibility and reputation develop - new opportunities for your own career/business are certain to emerge. You investing your time and expertise to help advance another company - means others more readily want to return the favor/opportunity and take the time to invest back into what matters to you. Perhaps that ERP, CRM or Accounting software they've vetted out now you know how to leverage, or that slick Text Request service they just implemented to schedule appointments and take payments automatically you see an opportunity with. Maybe it’s the speciality startup and IP law firm, accountants, or financing programs, or that exceptional Marketing Agency the company or the other board members have been using that could be hugely valuable to your own organization. The payroll system and tax strategy, the employment/legal agreements and best practices, you begin to have a better understanding on how they can be used and leveraged. Maybe one of the directors/companies you are working with are looking for interesting content for their news/email platform - and you're able to provide and promote yourself or your organization as a result greatly benefitting both of you.
Looking ahead - lending your energy and expertise to help advance a company you are on the board leads to significant buyout/profitability of which those investors/beneficiaries who are particularly grateful and more inclined (one might even say feel obligated) - to invest in your business or to collaborate on a larger real estate or community improvement project together. Maybe such opportunity came about because you learned from the other directors more involved with city development those investments being made in that area of town. The deep and meaningful social relationship opportunities that can, and often do form should not be unrecognized as well that can extend well beyond the board room/advising to one-of-a kind unique opportunities.
- Broadening - Working in a particular industry often means those others around also come from/may think in a similar way. By working with others from other disciplines and industries - this brings a vast amount of differing approaches and expertise that can help us cut through challenges in our own careers and companies where we expectedly have our own blinders on and limited knowledge. This naturally opens up new approaches to tackling challenges and approaching opportunities from a different angle. Perhaps this changes your standard direct combative approach in the marketplace, to a more comprehensive industry approach of which you or your company create an industry group to invite in other industry experts to talk, collaborate, an share with others via your Podcast and establish yourself/organization(s) as an authoritative partner in the industry. Dynamo Ventures and founding partner Santosh Sankar has done an excellent job of such a broader strategy in the Supply Chain industry - supporting and highlighting its portfolio of companies (and others) otherwise left to fend and promote on their own while simultaneously increasing and refining their own expertise/leadership credibility within the industry.
- See the Other Side - It's entirely normal for managers and executives to get caught up in their own function's lane versus seeing a more holistic perspective of an organization, how it must function and be orchestrated together, and the external considerations boards must consider and pursue. By comprehensively living this by serving on a board, you as an executive or manager have a much better view of the "other side" and consequently can be a more effective (and more promotable) employee as you can align your efforts more closely with those of the board. You understand more fully there may be tradeoffs in your organization needed, where perhaps resources must be urgently redirected towards Sales to meet investor expectations. You more quickly pivot to publicly support that reallocation instead of digging in your heals sulking, and instead come back to the table quickly with creative solutions to further that margin expansion project you were leading that got cut. You understand and anticipate the types of information the board/executives would find helpful, and the concise format they are looking for.
Article by Matt Carrington - Managing Partner - White Bison Ventures dedicated to connecting and investing in the exceptional people, relationships, and businesses of greater Chattanooga, the great state of Tennessee, and beyond.
