As your business grows, and you recruit more people, there often becomes less and less for you to do.
When you reach this point, it’s time for your board of directors to make a switch. This is the time when the founders need to step back, hand over control of the day-to-day business operations and take on a more strategic role.
Not only will this move allow you to focus on the bigger picture – your company’s journey, values, culture and mission – but it’ll also free your senior staff from micromanagement and let them do their jobs better.
The switch from an operational board to a strategic one can be a difficult transition – it’s akin to your child’s first day at school. You have to remove your head from the tumult of everyday operations and think about where you want your business to be in five or ten years, and what it will take to get it there.
Realigned, a board’s priorities not only streamlines chains of commands and processes, but also makes sure you as a board member are making the best use of your time. You have a responsibility to ensure your employees are happy and your business is successful – concentrating on these big strategic issues means they’re all the more likely to happen.
How do you know if you’re ready to switch?
- If your business is growing healthily, and you expect that growth to continue;
- If you have capable deputies managing the day-to-day running of each department;
- If you feel like you spend too much time problem-solving, and not enough concentrating on long-term goals; and
- If you think your business has potential for more growth through strategic changes.
Darren Fell is a serial entrepreneur, and founder and MD of online accounting firm Crunch.
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