Do you have a gang on your board?

• Author: Stow, Ralph p.
• Position: BOARD DYNAMICS - Cover story

Truth be known, it takes a little bit of each \gang member to truly round out an effective board of directors. See if you have these character types on your board.

If your board of directors was a biker gang, their handles would be something like Bulldog, Bomber, Pretty Boy, The Engineer, Money and Dealer, but decorum largely precludes such labels in the corporate setting, at least in public. Even though these attributive labels are not typically applied, almost every board has these players--or needs these players, in one form or another. Each adds their own unique value to a board, and each must be managed appropriately to truly leverage their benefit.

As noted by Dennis Cagan, frequent author and serial board member, "There is no business leader who has never made a mistake or an occasional error in judgment. Having a qualified and balanced board can dramatically reduce these missteps. It gives even the most capable businessperson a critical check and balance." While Cagan is right on target, just throwing a group of directors in with management might not produce the intended results, without a little bit of foresight, management, and understanding of each director type.

Particularly in middle market, for-profit enterprises, a well-rounded board of directors can have a dramatic and positive influence on the strategy and execution of the company. Most savvy investors and senior management teams recognize the importance of a "good" board, but they also must recognize the "basis" of the individual players to maximize the benefit of this meaningful resource. Part of this recognition will come when one breaks down each type of director to their core ethic, values, and style.

Bulldog

Bulldog is most typically that one member who will drill down, down, and down, on each subject area, looking for the nugget of causation at the core. While this individual can seem too detailed at times, this is the one person who can get you to cause-and-effect, and make everyone stay focused on the logic behind the business. The Bulldog does not typically make a great chairman, but can be an excellent lieutenant, in that they can take a somewhat esoteric discussion and make it more hard-hitting and effective. Management teams that recognize the Bulldog will largely prepare for them in advance, and will likely spend some up-front time with this director, understanding what their hot button issues might be. The Bulldog can actually make meeting preparation more...