sustainability
EXEC SUMMARY - Board Meeting Frequency
12/06/08 08:58 Filed in: BOARD
"We can't solve problems by using the
same kind of thinking we used when we created them."
Albert Einstein
The discussion turned to Board Meeting Frequency.
I had dinner a few nights ago in Philadelphia with a seasoned CEO and two venture investors, one of whom I've known for years, our paths having originally crossed at IBM. We were discussing a broad range of topics but one that struck a unanimous chord was our view on board meeting frequency.
Our team has wrestled with the topic of board meeting frequency for years. Many private company CEOs want board meetings to happen as infrequently as possible while public company CEOs can't wait to get through the "Quarterly Board Meeting Drill". We have a slightly different view.
At VECKER we believe board meeting frequency can be set by one clear measure - profitability. If you are losing money you have monthly board meetings, if you are break-even you hold them twice a quarter, and if you are making money you can hold them quarterly.
The reason for this is to get the best minds working together to close the gap to profitability as quickly as possible.
One counter-argument is that you can have a plan to lose money and you are executing to that plan. So why have monthly board meetings when you are achieving the plan to lose money? Our answer is to close the gap to profitability as quickly as possible, regardless of plan.
Profitability is a key element in sustainability; the longer you remain unprofitable the more your sustainability is at-risk.
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Albert Einstein
The discussion turned to Board Meeting Frequency.
I had dinner a few nights ago in Philadelphia with a seasoned CEO and two venture investors, one of whom I've known for years, our paths having originally crossed at IBM. We were discussing a broad range of topics but one that struck a unanimous chord was our view on board meeting frequency.
Our team has wrestled with the topic of board meeting frequency for years. Many private company CEOs want board meetings to happen as infrequently as possible while public company CEOs can't wait to get through the "Quarterly Board Meeting Drill". We have a slightly different view.
At VECKER we believe board meeting frequency can be set by one clear measure - profitability. If you are losing money you have monthly board meetings, if you are break-even you hold them twice a quarter, and if you are making money you can hold them quarterly.
The reason for this is to get the best minds working together to close the gap to profitability as quickly as possible.
One counter-argument is that you can have a plan to lose money and you are executing to that plan. So why have monthly board meetings when you are achieving the plan to lose money? Our answer is to close the gap to profitability as quickly as possible, regardless of plan.
Profitability is a key element in sustainability; the longer you remain unprofitable the more your sustainability is at-risk.
--------------------------------------------------------------------------------------------------------------------
To receive EXEC SUMMARY discussions by email please complete the Contact VECKER form.
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