Find experts that fill areas your company is currently lacking in. If your company is planning a major acquisition in the future, find people who have significant merger and acquisition experience. If your company has plans to expand internationally, find people who have international business experience. Experts to consider include executives of other companies that are similar to, but not in direct competition with, your company.
Recruit experts with board experience. People who have served on other boards will know what it takes to effectively work on a board of directors. You will not need to provide much training for experienced board members, which will ultimately save you time.
Manage the size of the board of directors. Keep the board small and focused. A good number of people to start with is 5. Always keep an odd number of board members to avoid deadlocks. Ensure that at least a portion of the board is clearly independent. In other words, they should not be related to or under the direct influence of any prominent members of the company.
Select people who can fully participate. Select people who can dedicate a significant amount of time to your company. Select people who live close enough to the company to meet face-to-face for important or unexpected issues.
Divide the board of directors. Form focused committees for critical areas of the company. Committees to form immediately include compensation and audit committees. In the long run, other committees should be established. These include acquisition and governance committees. People with relevant experience should be chosen to head each committee. For example, a person with accounting experience should be the head of the audit committee.
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