Club E Recap: What Value Does a Board Bring My Business?

In a recent Club E event at the Minneapolis Club, Rick Brimacomb hosted a dynamic panel discussion titled "What Value Does a Board Bring My Business?" featuring Katie Inouye, Founder and VP of North America at Spark TS; Cora Leibig, Founder and CEO of Chromatic 3D Materials; and Ben Olk, CEO of NCCO Group and Chair of their board. Together, these seasoned business leaders shared invaluable insights into how strategic boards can transform businesses across various stages and ownership structures.

Different Paths, Common Goals

Rick Brimacomb opened the panel by highlighting the unique backgrounds of each panelist. Katie Inouye shared her journey of transitioning Spark TS from a consultancy to a growing SaaS company, initially running the company with minimal oversight before intentionally forming a strategic board. Cora Leibig detailed her experiences navigating the volatile yet exciting 3D printing sector while leveraging investor-driven board expertise. Ben Olk provided insights from his role in evolving a century-old family-owned business, NCCO Group, through strategic board restructuring aimed at sustained growth.

The Power of External Perspectives

Katie Inouye emphasized how the inclusion of outside board members significantly altered her company's trajectory. Initially, Spark TS operated with minimal oversight, but as the company pivoted toward a SaaS-focused model, Katie recognized the need for external expertise. "The transformation of the company required outside DNA," Inouye noted. By adding seasoned professionals like Rick Brimacomb and John Long to the board, Inouye gained critical insights into scaling effectively and preparing strategically for an eventual exit.

Navigating Investor Dynamics

Cora Leibig shared candidly about managing a board influenced heavily by investor capital. She underscored the importance of aligning board members’ expectations, especially through the ups and downs inherent to the innovative 3D printing market. Leibig explained how clear communication and strategic adjustments to board composition helped manage shifting investor perspectives and facilitated access to new investment opportunities.

Governance in Family Businesses

Ben Olk highlighted the unique dynamics of transitioning governance within a longstanding family business. His decision to expand the board beyond family members to include independent experts was driven by ambitious growth targets. Olk described how external board members introduced valuable objectivity, strategic clarity, and accountability, ultimately enabling NCCO Group to remain focused and disciplined in its expansion goals.

Maximizing Board Effectiveness

Throughout the discussion, panelists provided practical advice for maximizing board effectiveness:

• Diverse Perspectives: Boards thrive when members challenge the status quo, bringing varied experiences and viewpoints that foster robust strategic discussions.

• Structured Accountability: Panelists agreed that effective governance and clear expectations for board members elevate decision-making processes, helping avoid complacency.

• Proactive Conflict Management: Addressing challenging issues openly and promptly helps maintain board cohesion and keeps strategic focus aligned with long-term business goals.

Supplementing Board Expertise

Panelists also discussed the role of executive coaching and external advisory resources. Inouye, Leibig, and Olk all agreed that engaging coaches and fractional executives could complement the strategic advice provided by a formal board, enhancing overall executive effectiveness.

Key Takeaways for Effective Board Management

• Clarify Board Roles and Expectations: Clearly define the strategic objectives and responsibilities of your board members.

• Encourage Constructive Challenge: Foster a board culture where challenging questions and strategic debates are encouraged.

• Leverage External Expertise: Supplement your board with advisors, executive coaches, or fractional services to fill strategic gaps.

• Adapt to Growth Stages: Recognize that board composition and roles may evolve significantly as the company progresses through different lifecycle stages.

• Prioritize Open Communication: Maintain clear, consistent, and transparent communication with board members, ensuring alignment and cohesive strategy execution.

The event concluded with actionable insights for entrepreneurs, executives, and board members aiming to harness the full potential of board governance to accelerate business growth and navigate complex strategic challenges effectively.