Wearing too many hats
Dear Corporate Shrink,
I am the founder and owner-manager of a small $6 million in revenues manufacturing company. I have a plant manager but I’m the director of sales, marketing, and pretty much the executive team. My main outside professional is my accountant. At times I think I can use another sounding board but I don’t want to bother with a board of directors. I’m not sure what my next move should be.
Dear Wearing too many hats,
Six million in revenues is nothing to sneeze at. You are not "small". Now that may be an issue you have to reflect on. Are you ambivalent about expanding and taking your company to the next level? If so, why?
Many company founders have difficulties making a transition to the more formalized organizational structure a growing business needs. There are advantages to having flexible job descriptions and an informal hierarchy. However, successful business development requires anticipation of human resources needs, especially in key positions.
It sounds like you know this when you say you are "wearing too many hats". You are going to need to spend some time and effort in thinking and generating a plan to deal with recruitment and selection needs - to find bodies to wear those hats.
From your question, I can’t tell whether this is a family business or not. Of course, the family factor would add another complicated dimension.
Now, let’s get back to your specific question of needing a sounding board. I don’t think you need a board of directors. Not at this time - and especially not before you’ve dealt with issues of sharing control with others.
I think you should start out with what every company needs: a commitment to effective governance. I’m not just talking about what’s on the financial news everyday regarding ethics and honesty. I am talking about a commitment and a structure to help shape and establish an organization’s identity by clarifying its vision, adopting its central values, and developing its policies (hiring, firing, leadership selection, etc.). If you start with this, the rest should fall into place. Now who helps you with this?
Well, it is the job of the board of directors (it’s supposed to be). But at this point you can start "small". As long as you are guided by the principles of vision, values, and policies, you can do this with the help of one, or a few, trusted and objective advisor(s). These can be professionals such as lawyers, accountants, or professional consultants.
This "board of advisors" can help you form a management development plan - finding bodies for all those hats.