CEOs often fall into the trap of orchestrating meetings with their Board of Directors to:
Show how great they are and how well things are going (whether they really are or not!).
Avoid leaving the meeting with more to do than when it started.
A great deal more value can be derived from working with a board but it takes concerted effort to build, cultivate, prepare for, and work with individual board members and the board as a whole for that potential to be realized. Efforts to build a high-performing board are well-spent.
Boards are not all the same
There are three distinctly different kinds of boards. Leaders often mix-up the three kinds which leads to confusion and poor performance. It is critical for a leader to be clear about what kind of board s/he is working with and to manage it accordingly. Continue reading Board Power!→
One of the hardest things for an owner/founder/operator to do is motivate others to perform and grow to their full potential. Watch how the pride and endurance of a race horse transforms a struggling team into winners in this inspiring scene from Seabiscuit.
Equity models are strategic because: “Who gets What” defines“Who You Are!” That is, the way owners share value with those who create it has a profound impact on the firm and the owners’ ability to attract, retain, and reward senior talent.
Private companies often use a variety of innovative tools, individually or in combination, to navigate and conquer major changes brought on by the urgent concerns of affordability, competency, and succession or “equity inflection points”. Continue reading Equity Rules→
You have a vision of what you want your organization to be but you do not know how to make it happen. The problem may be lack of capital, or you are consumed with the “every day”, or your team is not stepping up. The challenge is to find your organization’s constraint to growth and then to relieve that constraint.
Sometimes the solution is right in front of you but you need a fresh perspective from an experienced hand to see it, just as did Professor Nash in this scene from A Beautiful Mind:
An organization is a system of systems: the system of doing what it does (DO), the system of creating demand for what it does (SELL), and the system to get big (GROW). Odds are that one of these three systems holds your organization back from achieving its potential to perform and grow. Which system constrains your organization?
IntelliVen can help. We work best with organizations who sell products or services into the enterprise and government markets. You should be bigger than a startup and a small fraction of the size you will be when you get to the goal you are after.
Do you wonder what is the easiest, least expensive, and most flexible approach an owner/founder/operator can use to attract and motivate top talent? This post introduces Mark C Bronfman’s article on using Profits Interests vs Options to install simple, flexible, and highly effective executive incentive plans.
Profits Interest and why we need it
Founders who still own and run their businesses may bring on executives to get to the next level and/or to free themselves from being a slave to their success. The challenge is how to provide incoming executives with attractive upside at low cost, risk, and complexity to the owner, founder.
Profits Interests, an ownership and incentive planning solution under current US tax law, are often the right and best approach. This powerful equity incentive plan requires no buy-in; is not taxable at grant or vesting; and, its capital liquidations are taxed as capital gains