1. 3. Operations and Management Planning
Marketplace for Nutritious Foods Investment Readiness training for Businesses within the CoP
3. Operations and Management Planning
December 2018
Author : Intellecap

2. Operations Management & Planning
Operations management, also called “operations planning” or “operations scheduling,” is a term assigned to the planning of production in all aspects, from workforce activities to product delivery.
An effective Operations Management plan involves:
Observation of the current state
Analysis of associated costs
Establishment of performance goals
Monitoring of efforts toward those goals
Operations management, also called “operations planning” or “operations scheduling,” is a term assigned to the planning of production in all aspects, from workforce activities to product delivery. While this type of planning is almost exclusively seen in manufacturing environments, many of the techniques are used by service-oriented businesses. Simple to implement, operations management can be applied using nothing more than a spreadsheet program.
Operations management is primarily concerned with the efficient use of resources. While it is sometimes referred to as production planning and employs many of the same techniques, the primary distinguishing characteristic is that production planning is narrowly focused on the actual production whereas operations management looks at the operation as a whole.
Aspects of operations management
Operations management has a broad focus: inventory levels must be managed, materials ordered/stored, capacity maximized, relationships with suppliers maintained, and the interactions within the system monitored.
Many methods satisfy these items of focus; however, there are some generalities involved in their processes. Each involve the observation of the current state, analysis of the costs associated, the establishment of performance goals, and the monitoring of efforts toward those goals.
Primary concerns are capacity planning and production management.

3. 01 08 02 07 03 06 04 05 Key components of an operational plan include:
Operations Management & Planning: continued
Key components of an operational plan include:
Clear objectives 01
A process to monitor progress 08 02
Activities to be delivered
Implementation timetables 07 03
Quality standards
The Operational Plan seeks to develop efficiencies for the organization
Staffing and resource (including budget) requirements 06 04
Key targets and key performance indicators 05
Risk management plan

4. Operational efficiency?
Operational efficiency encompasses several strategies and techniques used to accomplish the basic goal of delivering quality goods to customers in the most cost-effective and timely manner. 
Resource Utilization
Inventory Management
Distribution
Production

5. 3 2 1 Resource utilization Benefits: 01 03 05 02 04 06
Entails getting the most value from resources and eliminating waste in production and operations are operational efficiency considerations. 3 2 1
Allocation of resources
Workforce scheduling
Production equipment scheduling .
Benefits:
Enhancement of product and process 01
Ensure continuous delivery 03
Ensure feedback as to make adjustment 05
Businesses should have an understanding of their key resources and their individual capacities
This includes personnel and their varying skillsets.
Only with this initial level understanding can the business hope to achieve operational efficiency
Scheduling helps in capacity planning as to reduce bottlenecks 02
Remove bottleneck in operations 04 06
Skill set of workforce

6. Determine potential production options
Production Planning
The administrative process that takes place within a manufacturing business and which involves making sure that sufficient raw materials, staff and other necessary items are procured and ready to create finished products according to the schedule specified
Determine potential production options
Choose most effective option
STEP 5
Adjust
STEP 4
Production
For manufacturing companies, efficient production is a major element of operational efficiency. This includes optimizing equipment, product processes and employee output so that you produce the greatest number of quality products possible with the time and money invested.
Achieving efficient production helps manufacturers get greater markup on sales to distributors and ensures the end customer gets a good value.
STEP 1. Forecast the demand of your product
Estimate your demand, so that you know how many products you need to produce during a specific time period. You may have already some confirmed orders for the next couple of month, but on top of that, you need to predict how many more may come.
Different methods exist to forecast your product demand. A traditional technique to estimate product demand is based on historical information (e.g. orders placed by your customers in the past). While this is a very common method, you need to consider external and internal events in your business environment that could alter past patterns. For example, new market trends, a slowdown in the economy, or a new marketing campaign that could increase or decrease your product demand compared to what happened in the past.
STEP 2. Determine potential options for production
Determine the different production options available to meet the forecasted demand of your product. For example, if you want to produce 100 shirts, you need to use a certain number of machines, human resources, materials, and time. Different combinations of these inputs can lead to different production times and costs. 
a. Start by mapping all the steps of your production process.  When doing so, take into account if tasks are sequenced or dependent on other tasks, or if they happen simultaneously or independently. Below is an example of how a simple process-mapping flowchart could look. Each box represents a task of your production process. The map of the production process will be different and unique to each company. Think about how to improve process flow by eliminating bottlenecks.
b. Determine the resources needed to complete each task involved in your production process.
 Look at how different combination of resources lead to different production times and costs:
Human Resources. Determine the number of staff that will be involved in each phase of the production process, their availability, and the cost. Make sure their time is well utilized.  
Machinery and Equipment. Identify the machines needed and their availability, including any maintenance or replacement that may be needed.
Materials. Make a list of all the materials needed for production and how you obtain them. Assess the reliability of your suppliers, including delivery time. Having materials available when needed is crucial for the production process.
Inventory. It is important that you consider how to optimize your inventory. Keeping a large inventory is expensive, but keeping a low inventory is risky if demand fluctuates on a regular basis. Having a good inventory control system in place can help your firm accommodate variations in demand and mitigate possible problems or delays that may occur during the production process.
STEP 3. Choose the option for production that uses the combination of resources more effectively
Compare the cost and time of each potential production option and choose the option that uses the most efficient combination of resources and that allows you to meet product demand. The chosen option should maximize the operational capacity of your firm.
Always make sure you can cover the costs involved in the production process (purchase of materials, office rent, payment of staff salary, leasing, etc.) 
You need to share your production plan with all the departments and staff that contribute or interact with the production process, including human resources, procurement, finances, marketing, etc. If everybody knows what to do, and what materials and equipment should be used for each task of the production process, operations will be smoother.
STEP 4. Monitor and control
You want to ensure that your plan is working in the way it is intended. Monitoring and controlling is about comparing what is happening with what should be happening. Having a control system in place helps you detect problems as soon as they occur, allowing you more time to correct before it is too late.
Forecast Demand
STEP 3
STEP 2
Monitor and control
STEP 1

7. Distribution Planning
This involves analysis to find the most efficient ways to move goods from manufacturer to wholesaler and from wholesaler to retailer. Efficient routing and delivery scheduling are common aspects of efficient distribution.
Non-competing companies might share truck space, for instance, to avoid less-than-full loads if they move goods on similar routes.
Which channel should be used to ensure products reach customers?
Distribution channel
When and where should a product be dispatched?
Product dispatching
Which product should be held at each location and in what quantity?
Product placement 01 03 05
While distribution and logistics planning is gaining importance within corporations, distribution planners and supply chain managers are still struggling to come to terms with the increased expectations. The bulk of their time is still spent on short-term operational problems related to meeting immediate demand requirements, without much consideration for longer-term costs or strategic issues.
Most of the issues faced by distribution planners and supply-chain planners can be linked to:
Demand-side Variability Difference between forecasted and actual demand; hockey stick sales patterns
Supply-side Variability Delays in supply; lead time variability; campaign production runs; production in lot sizes
Process Variability Non-standardized planning process; use of intuition, experience, and rule-based heuristics instead of complete cost based optimization
Lack of information availability and visibility Delays in conveying forecast changes to Distribution since Distribution and Marketing work on different forecasts
Conflicting objectives between different departments Marketing wants to maximize sales and increase product availability, while Distribution wants to minimize product inventories and distribution costs
Sub-optimal planning Lack of synchronization between Production and Distribution planning; limitations of the human mind to process and utilize all available data to make optimal decisions
The highly data-intensive, deterministic and repetitive nature of distribution planning lends itself well to the use of Decision Support Systems. These systems can leverage the latest advances in information technology andoptimization techniques to manage inventories and plan dispatches to meet demand at minimum cost.
Distribution Planning systems can address the following operational issues faced by a supply chain manager
Product dispatching: When and where should a product be dispatched?
Product placement: Which product should be held at each location and in what quantity?
Vehicle loading: What products should be loaded on to a vehicle?
Vehicle choice: Which mode of transportation should be used?
Vehicle planning: How many vehicles of each type would be required on what days in the next one month?
Distribution Planning solutions should reduce process variability, improve information visibility and co-ordination between departments, and optimize planning, while responding to demand and supply side variabilities in real time.
In addition to the above, Distribution Planning solutions can also aid in strategic decision-making in areas like network planning, warehouse capacity planning, vehicle capacity planning, and inventory and service level management. These systems facilitate long-term planning, and creation and analysis of various demand, supply and supply chain structure scenarios.
Benefits of effective distribution planning
Minimize total cost of distribution
Increase productivity
Synchronize Distribution and Production planning
Informed decision-making 
Improve coordination between Marketing, Distribution and Production.
Improve responsiveness 
Distribution Planning should be led by Demand Planning and be a driver for Production Planning to ensure seamless supply chain integration.
Requirements of a good distribution planning system
Increase manager productivity through automated, high-speed planning
Formalize informed decision-making and reduce variability in the Distribution planning process
Leverage information collected through ERP and other transactional systems for optimized planning
Improve information visibility and coordination between Marketing, Distribution and Production.
Improve responsiveness by a)Allowing planners to quickly adjust production and distribution plans to demand/supply variability (for example, changes in demand forecasts, supply delays, etc.)b)Generating production and distribution requirements for different demand and supply scenarios, allowing for contingency planning
What products should be loaded on to a vehicle?
Vehicle loading
Which mode of transportation should be used?
Vehicle choice
How many vehicles of each type would be required on what days in the next one month?
Vehicle planning 02 04 06

8. How do you achieve operational efficiency?
Inventory management is the management of inventory and stock.
As an element of supply chain management, inventory management includes aspects such as procurement of raw materials, maintaining semi-finished goods and holding of finished goods ready for sale.
You need to know the following:
The definition of Inventory Management is easy to understand. Simply put, inventory management is all about having the right inventory at the right quantity, in the right place, at the right time, and at the right cost. But how do you implement the best inventory management techniques to ensure the best results? Read on to find out our insights for inventory management best practices.
1. How do I calculate the “right amount” of inventory to stock?
Stocking the right amount of inventory is crucial. If you order too little, your customers will start looking elsewhere. If you order too much, there’s a chance you’ll be stuck with lots of extra stock that you’ll be forced to sell at clearance prices, or risk having them become obsolete.
In a poll by GetApp, business owners were asked how they decided when to reorder inventory. A resounding 46% of them decided based on information from previous months. If you’re part of that 46%, you want to make sure you’ve got the right inventory data - which means looking for a solution that’ll automatically track your inventory movements as much as possible.
In fact, even if you chose to use inventory forecasting software (15%) or Excel formulas (13%), you’re still going to need information from the previous months. (If you’re wondering about the remaining 26%, they selected “Other” - we’re still betting information from previous month’s factor in somewhere though!)
2. How do I determine the “right price” for my inventory?
You don’t want to pay more for your products than you have to, but lower prices aren’t always better. Suppliers often promise price quantity breaks - you just need to order 20% more stock to save 10% - and you may find yourself digging into your savings to make this purchase.
But is that the best choice for your business? After all, purchasing stock is only the beginning. There’s a whole host of carrying costs attached to your products. The more stock you have on hand, the more you’ll have to spend on storage facilities, while increasing your risk of having products going out-of-date. This is where the Economic Order Quantity (EOQ) formula comes in.
Economic Order Quantity is a formula that calculates the number of units your business should be adding to inventory order. This question is aimed at reducing the total costs of inventory management – including factors like order costs, holding costs, and shortage costs.
We know it can be challenging to do all the calculations manually, so to help you out, we've built an EOQ calculator.
3. How do I know the reorder point for new inventory?
Knowing your EOQ lets you know the inventory level you want to maintain, but how do you decide when it’s time to place a new order? Of course, you want your shipment to arrive just in time… ideally when your previous batch is about to sell out. If it arrives too early, you’ll be looking for space to store these items. And if it arrives too late, well, you’ll be forced to announce that you’re out of stock.
Opening backorders offers a way to deal with out-of-stock situations, but there’s a chance your customers will prefer looking elsewhere to find the products that they want. So, you always want to make sure you’ve got stock on hand, which is where your reorder point comes into play.
When it comes to calculating your reorder point, you need to account for:
The time it takes to get your items picked
The time it takes to get your items packed
The time it takes to get your items to be shipped (lead time)
4. How do I figure out the right place to sell and distribute my inventory?
Do you sell on multiple channels? If you do, ensuring you’ve got the right amount of products in the right place is probably a challenge you face constantly.
The great thing about selling products online is that you’re fulfilling all orders from the same pool of stock. So, you don’t have to think too much about how many items you want to allocate to individual sales channels.
But this can come with a whole different host of problems: If your online inventory shows five items available, you want all five ready for sale in your warehouse - not traveling the country in a mobile shop or lying idle in your consignment store at the opposite end of the country.
5. What is the best tool for optimal inventory management?
To prevent situations like the above from occurring, consider an inventory management system that tracks inventory movement across all your sales channels in real time. Many small businesses will try to manage their inventory through excel spreadsheet and formulas. However, once your business starts to grow, relying on Excel spreadsheets for inventory management becomes extremely limited.
An inventory management system that updates your stock movements across all channels will significantly reduce your risk of overselling – and that’s what we’re aiming for.
One recurring theme to good inventory management highlighted above is the need to track inventory movement constantly, instead of doing it periodically. Automation is one of the biggest advantages of making the move to inventory management software - you won’t have to worry about missing reorder points or overselling by accident.
By automating the inventory management process as much as possible, you’ll be able to reduce the likelihood of human error. Once you take the plunge and make the move to inventory management software, you’ll have more time on your hands, giving you more time to focus on what’s really important - growing your business.
How do I calculate the “right amount” of inventory to stock?
How do I determine the “right price” for my inventory?
How do I know the reorder point for new inventory?
How do I figure out the right place to sell and distribute my inventory?
What is the best tool for optimal inventory management?

9. How will you know if your company is making progress?
Collective Discussion
How will you know if your company is making progress?

10. Tools to measure Operational Efficiency | KPIs

11. Key Performance Indicators (KPIs)
KPIs are a set of quantifiable measures that a company uses to gauge or compare performance in terms of meeting their strategic and operational goals.
KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators.”

12. Why do you need KPIs for your business?
Identify trends
Improve decision making
Alert when something is wrong
You can use them to examine the current performance of your company in comparison to past periods of time, from the prior quarter to years ago.
Example: Average cupcakes sold – measuring daily and weekly helps predict salesforce needs
Example: if your sales are going up, do you need to higher more people in the production team?
This can help you identify problems that need fixing. Even better, it can direct your attention to potential problems that can be avoided.
Example: Inventory should be 15% of sales – early warning notice before unable to fulfill

13. How to develop KPIs for your business?
Key Performance Indicators
What measure of success are tied to the drivers?
Key business activities
What are the key actionable activities to meet these goals and objectives?
Goals & Objectives
What are the short term and long term goals to achieve the strategy?
Overall Business Strategy
What is your organization trying to achieve?

14. Different types of KPI/ Metrics
Monthly Sales Growth
Average Profit Margin
Monthly Sales Bookings
Sales Target
Quote To Close Ratio
Average Purchase Value
Average Cost Per Lead
Retention and Churn Rates
Customer Lifetime Value
Average Conversion Time
New and Expansion MRR
Number of Monthly Onboarding and Demo Calls
Financial
Sales
Marketing
Production
Production Volume
Production Downtime
Production Costs
Defect Density
Rate of Return
Asset Turnover
Unit Costs
Return on Assets
Maintenance Costs
Sales Qualified Leads
Conversion Rates
Brand awareness
Customer engagement
Lifetime value of a customer (LTV)
Customer acquisition cost (CAC)
Customer retention rate
Gross profit margin
Earnings before interest and taxes (EBIT)
Contribution margin
Liquidity ratio
Interest cover
Days in accounts receivables
Net cash flow
Transactions error rate
Production Metrics
Production Volume: Track the quantities that your business is able to produce
Production Downtime: Analyze and optimize your maintenance
Production Costs: Monitor the costs implied in the production
Defect Density: Track the damaged items right away
Rate of Return: Measure how many items are sent back
Right First Time: Understand the performance of your production process
Asset Turnover: Acknowledge your assets in relation to your revenue
Unit Costs: Track and optimize your units costs over time
Return on Assets: See how profitable your business is relatively to its assets
Maintenance Costs: Evaluate your equipment costs in the long run
Marketing Metrics and KPIs
Marketing Metrics and Key Performance Indicators (KPIs) are measurable values used by marketing teams to demonstrate the effectiveness of campaigns across all marketing channels. Whether you are looking to track digital marketing performance, SEO progress, or your social media growth, having measurable marketing metrics and KPIs set up can help your business reach targets month-over-month. Track your marketing goals with these marketing metrics and KPI examples.
Best Marketing Metrics
The top KPIs for modern marketing teams:
Marketing Qualified Leads (MQL)
Sales Qualified Leads (SQL)
Funnel Conversion Rates
Brand awareness
Customer engagement
Marketing spend per customer
Return on marketing investment
Lifetime value of a customer (LTV)
Customer acquisition cost (CAC)
Customer retention
Sales Metrics and KPIs
Most commonly used Sales KPIs & Metrics
The top KPIs for modern sales teams and sales executives are:
Monthly Sales Growth
Average Profit Margin
Monthly Sales Bookings
Sales Opportunities
Sales Target
Quote To Close Ratio
Average Purchase Value
Monthly Calls (or s) Per Sales Rep
Sales Per Rep
Product Performance
Sales by Contact Method
Average New Deal Size/Length
Lead-to-Sale %
Average Cost Per Lead
Retention and Churn Rates
Customer Lifetime Value
Average Conversion Time
New and Expansion MRR
Number of Monthly Onboarding and Demo Calls
Financial Metrics and KPIs
The top KPIs for modern finance and accounting teams:
Earnings before interest and taxes (EBIT)
Economic value added (EVA)
Berry ratio
Contribution margin
Liquidity ratio
Interest cover
Days in accounts receivables
Net cash flow
Gross profit margin
Transactions error rate

15. Building your Team

16. Myth Busting Activity Best friends are the best co-founders. (False))
I need to perform a needs assessment before hiring. (True)
I should hire based on the most impressive CV (False)
In the beginning, incorporating team culture is not important. It matters to get the right skill set first. (False)
Goals should be developed in consultation with team members (True)
Your company CEO must be part of the board of governance. (True)
The left side of your BMC should give you an idea of what your team should look like (True)
My board of advisors/governors should have diverse skill set (True) 

17. Qualities of a good team
01 - Good leadership 01
02 - They communicate well with each other 08 02
They have fun- 08
They’re organized- 07
03 - They focus on goals and results 07 03
Team members are diverse - 06 06 04
04 - Everyone contributes their fair share
Good leadership
A strong team usually have a leader that they trust and respect. This individual essentially works as the glue holding the team together and should be responsible for setting the pace, offers encouragement and motivation and keeps all members of the team updated.
They communicate well with each other
They communicate openly with each other, sharing their thoughts, opinions and ideas with members of their team;  as well as taking into consideration what others have to say. Communication is essential for keeping track of progress and working together efficiently on tasks. Poor communication can lead to crossed wires, that can mean work is left incomplete/incorrect or conflicts can arise.
They focus on goals and results
They agree on and set team goals based on outcomes and results, rather than just on the amount of work being done. A clear plan can then be set about how they are going to achieve these objectives, as a group, as well as each individuals contribution. This provides them with clear direction and gives them something to aim for collectively.
Everyone contributes their fair share
Each member of the team contributes their fair share of the workload and fully understand what their responsibilities are and where they fit in with the running of the business. They feel a sense of belonging to the team, are committed to their work and really care about the success of the company.
They offer each other support
Team members are always happy to assist others when they need a helping hand with work. Teams are often more productive when they are also offered support from the organisation and access to the required resources.
Team members are diverse
Everyone is unique and will be able to offer their own experiences and knowledge that others may not possess. Diversity is needed so that all of the required skills are covered by somebody in the team and each individual can be assigned a particular role on the basis of their strengths and skills. A variety of personalities, age groups, cultures, etc. can also bring creativity and a broad range of ideas to the table.
They’re organised
Organisation is essential for the smooth running of a business. Without it the workplace can become chaotic and goals are unlikely to be achieved. Though each individual should be responsible for organising their own workload, management should ensure that everything is running to plan and each member of the team is getting their work completed efficiently. Holding regular meetings can help to make sure that everyone is on the same page and deadlines are being met.
They have fun
It shouldn’t be all work and no play! This can lead to burnout and lack of productivity, so it’s important to inject a bit of enjoyment into working life. Teams who work particularly well together enjoy each others company and get together outside of the office from time to time to socialise and have some fun! Building a positive relationship with your colleagues can make for a much more relaxed environment and reduce conflict. 05
05 - They offer each other support

18. Building a winning team
Have a strategy to find the right candidates 01 04
Create a Job description
Learn how to interview when hiring a team 02 05
Hire for attitude
A business is only as strong as the team behind it. A strong entrepreneur with a weak team will only be able to achieve a fraction of what they could have achieved if they had a strong team
Job analysis and Job Description - Hiring the right employee starts with a job analysis. The job analysis enables you to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. The information from the job analysis is fundamental to developing the job description for the new employee. The job description assists you to plan your recruiting strategy for hiring the right employee.
Recruiting strategy
A recruitment strategy is the plan of action that an employer or agency has for the recruitment process. It is often put in place when an employer or agency is planning on hiring to fill a role or roles within a company. Although the strategies will differ, there is a general guideline of what needs to be included:
Hiring needs (open positions, benefits offered, budget, timeline, etc.)
Goals
Roles of the hiring team’s members
Recruitment tools
Hiring Process Steps
Key Performance Indicator
Hire for attitude
Build a business with the right attitude towards teamwork, the right team and it will be unstoppable. And, with the right team in place, your achievements are limited only by the imagination. Mark Murphy, the author of Hiring for Attitude, reveals in a study that tracked more than 20,000 new hires, that 46% failed within 18 months. A surprising insight from the research was that 89% of the new hires failed because of attitudinal reasons and only 11% had to quit jobs because of lack of skills. Skills are what you use to weed out the candidate pool.  Attitude is what you use to select the right person from among the qualified candidates.  And attitude is something that you can assess during the interview process.
Build your interview skills
Intervieiwing skills -  Interviewing is a skill that must be practiced and learned just like any other skill. Behavioral questions that employers ask during interviews are not always the right mode of asking questions and are plagued with mistakes.
Share the organization goal
A team can only be really productive if there is a common overall goal, then everyone contributes their own skills and expertise. While at it, set minimal milestones, which help the team work progressively towards the greater goal. Moreover, communicate clearly on the common goals to ensure that everyone is on board and understands how they contribute to the common goal.
Plan as a team
People will hardly commit to a goal if they do not feel like they are part of it. Once you have established the common goal, it is important to come together as a team and plan on how to break it down into tasks, and what each team member’s input will be.
Share the organization goal, vision 03 06
Plan as a Team

19. Corporate Governance

20. What is corporate governance?
These are structures and practices for the efficient and proper direction of a company in the interest of the shareholders. Corporate governance requires efficient management of relationships between: 01 03 05 07
Shareholders
Managers
Customers
Suppliers 02 04 06 08
Board of directors
Employees
Creditors
Community
Corporate governance parties:
Those that own the company
Guardians of the company’s assets for the shareholders
Who use the company’s assets
SHAREHOLDERS
DIRECTORS
MANAGERS
Talk of corporate governance is not exactly common in the small business setting. After all, the term “corporate governance” refers specifically to large, publicly owned and traded companies—companies that are required by law to manage and disclose how board members and executives make decisions
Most small businesses are more concerned about viability and affordable business solutions than they are about corruption. And while most small businesses typically don’t have a board of directors, they do have investors or multiple business partners with a substantial interest in the success and growth of the company and therefore, comes the need of Corporate Governance

21. The importance of Corporate Governance Structures
Helps run ethical business
It helps manage growth effectively
It establishes accountability and structures to evaluate performance
Attracts high quality employees
Helps with future investor conversations
Ethical operations aren’t just for big companies
The very backbone of corporate governance is ethics—something that is of value to the consumer, whether purchasing products or services from a large corporation or a small business.
Small companies can turn into large companies
Small businesses that institute formalized policies and procedures early in the company’s life cycle tend to encounter fewer growing pains.
It establishes accountability and structures to evaluate performance
Policies and procedures attract and retain staff
Corporate governance practices often offer clarity to employees with outlined goals, targets and compensation that can attract and retain quality employees.
Helps with future investor conversations
A sound corporate governance practices attract new investors or partners to consider investment or partnerships with a company.

22. Qualities of an Effective Board
Specific expertise
Team Oriented Attitude
Dependability
Specific Expertise
One of your Board’s main responsibilities is to provide guidance and advice on all aspects of your business. So, aim to put together a Board that offers expertise in a variety of topics and areas.
Before piecing together your Board, determine what sort of professions and knowledge would directly benefit your mission.
Do you need someone from the legal field to walk you through complex issues?
Would an accountant be helpful to you?
Could you benefit from having a marketing expert as a resource?
Don’t hesitate to get specific and list out detailed subject areas. Are you hoping for someone that specializes in small business finances or only B2B marketing? Put that on your list!
When putting together your Board, imagine you’re putting together a puzzle. Take a look at all of the qualified potential Board members, and group them by subject matter expertise. Then, pull out all of your top-choice candidates, while attempting to achieve a balance of varying proficiencies. This will help you focus on assembling a well-rounded Board that will be helpful with many different aspects of your nonprofit.
Dependability
If you’ve ever worked with a Board member that was unpredictable and unreliable, you already know how frustrating that can be.
Having Board members that are dependable and consistent is crucial. You need your members to regularly attend all scheduled meetings and show up prepared, so that you don’t need to waste the first half of your meeting familiarizing them with the information that was previously sent to them.
Actively engaged Board members will read the agenda ahead of time, sort through any relevant documentation, and show up to the meeting with their questions, comments, and ideas ready to go.
You also want to make sure that your Board members are willing and able to accept different tasks and assignments. This is especially important if you’re a business with a smaller team of regular staff members, as you may need your Board members to take care of something that you don’t have the resources for. Your Board is there to provide assistance, so make sure that you can depend on them to do so.
Good Character
When finding Board members, keep in mind that they’ll be representing your business. Whether you expect a great deal or very little from the members of your Board, one thing you should absolutely require is that they’re upright and honorable. You need to be able to discuss confidential information in your meetings without fear that it could be leaked to the public or media.
Also, ensure that your Board members maintain positive reputations in the community. The actions of your members will reflect back on your nonprofit. So, make sure you’re confident in your Board members’ decisions and public personas.
Good networks
While you want your Board members to uphold positive reputations in the community, it also helps if they’re well connected.
Your members will be out networking and promoting your business on your behalf, and it’s an added bonus if they already have a captive audience to spread the word to!
Having well connected Board members also opens the door to additional resources and opportunities. If you need assistance with a special project or are looking to recruit volunteers, your Board members’ networks provide an even bigger pool of assets for you!
Team-Oriented Attitude
Of course, you want someone that brings innovative ideas and strong opinions to the table. However, you also don’t want that person to be a steamroller that dominates every conversation. Search for Board members that possess a positive, collaborative attitude so that your meetings always have an atmosphere that is supportive and encouraging of new ideas. Also, aim for members that are skilled communicators. They’re comfortable taking the floor, but are also excited about listening to others’ thoughts. They’ll also know how to provide criticism without being hurtful or condescending.
Building a qualified, active, and engaged Board is key for developing new ideas and strategies, resolving complex issues and ensuring the continued success of your business. Look for these qualities when assembling your Board, and you’re sure to have a great team behind you!
Good Networks
Good Character