Mark Pfister - Build an effective board and success will follow
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In this episode, Mark A. Pfister, the “Board Architect,” talks about how to build a board, what that means and the powerful impact it has on any company or organization.   Thanks for listening! We love our listeners! Drop us a line or give us guest suggestions here.   Links   Board education & certification: https://www.pfisterstrategy.com/exceptionalboarddirector     Book on Board Architecture: https://www.pfisterstrategy.com/books   Quotes The architecture component of a board forces the thought process that you are looking and planning earlier. Whether you're creating a new board, or you're looking to rebuild an existing board, put some discipline behind this, look at the design aspects of it, understand there is a successful formula and model for boards that work efficiently and effectively; hence, the terminology of “board architecture” over “board structure.”   Three areas of focus in board architecture Sphere of influence. This relates to the vertical components of a properly built board. Core leadership competency, operations experience, and skillset competencies.   Planes of Congruence. This looks at the character of the Board, essentially the horizontal components. These can include balance of personality types, mix of industry backgrounds, diversity, age ranges, and many other components.   Coverage and Balance. This has to do with creating a depth of knowledge and somewhat of an    overlap of knowledge on the board. It allows for at least one other person, if not more, to have that ability to question whether it's at a governance level, whether it's at a technical level, just to understand and bring that conversation to additional questions and elevate the outcome, which is what that board is there to do .   “There's this interesting trend where placement and search organizations are being engaged to a certain degree, but the nominating committee has really taken an end-to-end process back into their purview and they're managing that process from end to end.”   Testing of board members I use two tests, one is called the GPPI or Gordon Personal Profile Inventory, and that particular test allows me to assess what I correlate to the emotional intelligence and the mindfulness intelligence. It's not just about IQ anymore.   Another one that I use is a Watson-Glaser test that allows as a comparison back to if someone's claiming to be an expert or a certain level of leadership, you can compare that back, and all of these tests are comparing back against big data so it's not that it's right or wrong answers. It's about are other people at that level successful and how is this person comparing with that?   “I believe that 90-plus percent of most issues within any board of directors of any entity type relates back to its lack of architecture in the way the board is built, so that makes it even more important for an aspiring director to understand how they avoid engagements or even appointments where they're just simply not going to be happy, or their risk goes up.”   “I am of the mindset that we are not just representing shareholders anymore that are only focused on the financial outcome of the organization. To me, and this is another observable, a board that is focused not just on the shareholder aspect, but also on the stakeholders, which are many - that's employees, that's vendors, that's consumers of the product and services - that viewpoint has to be an equal weighted consideration in the boardroom.”   “Whatever failures happen in an organization. I don't look at the CEO. I look at the board first and foremost." The CEO is a direct representative at the operational level of the organization representing the board, period.   “Every director should keep in the back of their mind ‘values equal culture equals organizational risk level’ - all of it can be related back to that.”   Big Ideas/Thoughts   Question: What is the
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