Most business owners know that each team member should have a job description. Get clear on the responsibilities and tasks, set some KPIs, set the ideal person specification and hours of work and then monitor and measure performance. But too many business owners fail to do the same for their own role as Director of the business.
So what needs to go into your job description? The most important function the Director carries out is to maximise shareholder value.
Carrying out activities that drive up returns and business value –
by working smarter not by working harder.
The key responsibilities you should carry out as a Director include setting the vision and strategy, managing and mitigating risks, growing the business, establishing the right business structure and holding the CEO (who may be one of the Directors too) to account.
How much time are you dedicating to working on the business in this way?
Best practice is around 1 – 2 hours per week, then a minimum of ½ a day per quarter and an annual 1 - 2 day off - site planning session (often referred to as a retreat as you take yourself away from the day to day distractions of the business and do some serious ‘blue sky thinking’).
Appoint someone independent to hold you to account to ensure you adopt best practice as a Director. Options here are to establish an advisory board that meets quarterly (with one person as Chair) or appoint an experienced facilitator to run these sessions for you. You will get so much more done if you have this independent accountability process in place.
Most importantly, remember that you are not exempt from meeting the requirements of your role as a Director. Just as you do for your team roles, set up your Director job description, get clear on the responsibilities and tasks, set the KPIs, set the ideal person specification and hours of work and then monitor and measure performance. This approach ensures that what you are asking your team to do is what you do yourself too.