When business leader and former CEO of Thomas Nelson Publishers Michael Hyatt hired his first financial advisor in the 1990s, he naively bought into his advisor’s tax shelter plan not realizing it was a scam until years later. In his blog post, “Who Are Your Trusted Advisors?” Hyatt states that he still regrets that decision and encourages leaders everywhere to regularly seek the wisdom of not one, but multiple advisors.
Hyatt isn’t the first to discover this bit of insight. A biblical proverb warns, “In the multitude of counselors, there is safety” and the concept is catching on among business leaders everywhere, including Stanford Business School professor Jim Collins. First requiring his students to form their own personal boards, he began to see their benefit for graduates, too, and in all stages of their careers. Collins writes that the key to creating a valuable board of directors is to select them from a wide variety of backgrounds.
Identify
Before creating your own personal board of directors, it’s essential that you formulate your individual goals first. Ask yourself where you want to be in five years and be specific in all areas of your professional and personal life. Understanding the direction you’re heading goes a long way in helping you identify those suitable to advise you.
List
List four to six trust-worthy prospects to serve as your board of personal directors. Look for those with skills, personalities and careers different from yours. Include someone who asks good questions to help you think outside your box, someone who is an extrovert and can help connect you with others and don’t forget an older professional who can bestow wisdom gained only through the years. You should also break away from choosing only close friends who may say only what you want to hear. The candor of others helps you see the big picture a little more clearly.
Approach
When approaching your prospective board members, keep gratitude foremost. Explain how you admire him or her and how their expertise and skill set can help you meet your goals. List the benefits he’ll receive, too — like increased connections and an offer to pay back the favor.
Confer
Set up a monthly meeting with your board to start with and plan to move it to weekly or quarterly as time reveals your needs. You can meet collectively, individually or even virtually. Distribute your business plan to board members and ask them for general tips, recommended books, names of people, and other resources available to help you grow. Ask them to hold you accountable for meeting your goals and be bold enough to disclose your fears. Their encouragement can help you jump seemingly impossible hurdles.
Give Back
Your board of directors will be devoting considerable time to help you reach your goals; make sure you pay it forward. Be constantly on the lookout for opportunities to help them in a variety of ways and regularly ask them to share what they need.
Adjust
As your career shifts and changes, your board of directors may change, too. Be prepared to adjust your board regularly and consistently look for others who will make good board candidates.