Lisa Kro was the Co-Founder of Mill City Capital, a private equity firm in Minnesota. Lisa has worked and served on a dozen different boards and has a wide range of experience; everything from non-profit to small business that turned into big business! On today’s show, Lisa is here to explain the importance of a board for your company, some of their responsibilities, and best practices to recruit new board members.
Key Takeaways:
[2:40] How did Lisa get started in becoming a board member?
[3:10] What’s the importance of having a board of directors?
[4:35] When does it become necessary to have a board of directors?
[5:20] What’s the difference between a board of directors vs. a board of advisors.
[7:25] For a board of advisors, who should fill those seats?
[10:00] What’s the purpose of a board?
[12:50] It’s important to have a diverse set of people sitting on the board to help bring new perspectives into your company.
[16:10] Who is in charge of setting the strategy for the business? Does the responsibility still fall on the CEO or is it now the responsibility of the board of directors?
[17:30] How can the board help with a CEO succession plan?
[19:45] Lisa shares how a board can help grow and develop talent.
[22:10] How often do mergers and acquisitions work out well for companies?
[25:20] You and your lawyer want to sit down and write out exit strategies for your board members.
[26:45] What kinds of fiduciary responsibilities does the board of directors have?
[28:15] How big should a board of directors be?
[30:00] To be a part of the board, how much of a time commitment is it?
[36:20] It’s important to reflect on past mistakes, but you should not dwell on them. Lisa recommends no more than 20% of reflection time during a board meeting.
[39:00] It’s really helpful to have an appointed mentor for new board members coming in.
[41:10] Another tip: Get board members to meet directly with high-performing employees.
Mentioned in This Episode:
Email Todd: Todd@Dynastylc.com