If your board of directors was a biker gang, their handles would be something like Bulldog, Bomber, Pretty Boy, The Engineer, Money and Dealer, but decorum largely precludes such labels in the corporate setting, at least in public. Even though these attributive labels are not typically applied, almost every board has these players — or needs these players, in one form or another. Each adds their own unique value to a board, and each must be managed appropriately to truly leverage their benefit.
As noted by Dennis Cagan, frequent author and serial board member, “There is no business leader who has never made a mistake or an occasional error in judgment. Having a qualified and balanced board can dramatically reduce these missteps. It gives even the most capable businessperson a critical check and balance.” While Cagan is right on target, just throwing a group of directors in with management might not produce the intended results, without a little bit of foresight, management, and understanding of each director type.
Particularly in middle market, for-profit enterprises, a well-rounded board of directors can have a dramatic and positive influence on the strategy and execution of the company. Most savvy investors and senior management teams recognize the importance of a “good” board, but they also must recognize the “basis” of the individual players to maximize the benefit of this meaningful resource. Part of this recognition will come when one breaks down each type of director to their core ethic, values, and style.
Bulldog
Bulldog is most typically that one member who will drill down, down, and down, on each subject area, looking for the nugget of causation at the core. While this individual can seem too detailed at times, this is the one person who can get you to cause-and-effect, and make everyone stay focused on the logic behind the business. The Bulldog does not typically make a great chairman, but can be an excellent lieutenant, in that they can take a somewhat esoteric discussion and make it more hard-hitting and effective. Management teams that recognize the Bulldog will largely prepare for them in advance, and will likely spend some up-front time with this director, understanding what their hot button issues might be. The Bulldog can actually make meeting preparation more effective for everyone.
Bomber
Bomber loves to open the door, toss in a flash-bang, and wait outside for the insurgents to come tumbling out the door. This member is often armed with contradictory data or has formulated a difficult question, but really wants to see the conversation unfold around their issue with the board at large. Bombers are often very intelligent, but have a little mean-streak by nature, and derive some pleasure from showing it. Bombers also need other strong directors around them, who share their inquisitive nature, but need someone to break the ice before diving in. Bombers can sometimes be seen as disruptive to a board, but if managed properly they can be a huge asset — in a good cop/bad cop kind of way. Often reviled by management, their presence can actually benefit the board by getting to serious discussions more quickly.
Pretty Boy
Pretty Boy is the prototypical utility infielder of the board. This director is experienced and fluent on a wide variety of functions and industries, but is typically much broader than deep in relation to the other directors. Pretty Boy is also likely very politically savvy and approaches discussion in a much less adversarial way. This is a common chairman or vice chairman, and is the one director who will spend a lot of time getting to know the inner workings of the others first. This director is also much more likely to try and engage others in advance on certain topics to understand their position or thoughts. They are generally less talkative at times than other directors in the meetings; however, they will talk in order to engage other directors so as to solicit their thoughts. Pretty Boy is a consensus builder, but not to a fault. They are also good at “summarizing” discussions, conclusions, and agreements.
Engineer
The Engineer is probably self-explanatory, but they are the logic and fact-driven member of the board, and most typically have very deep industry or functional expertise. This deeply informed professional will likely not be the most talkative member of the board, but when they do speak, it is pure gold. The Engineer is very well prepared for meetings, punctual, and operates excellently under clear and concise agendas, time limits, and within Robert's Rules of Order. Spending time in advance of a meeting encouraging the Engineer to bone-up on a topic is a great way to focus this analytical master on the work at hand. Every board needs an Engineer, and most companies can benefit greatly from this mental process and detailed acumen.
Money
Money looks at everything through the P&L and balance sheet, and is keenly aware of the financial impacts of everything from annual budgets and period results to make vs. buy decisions on capital equipment and inventory. Most typically this is an investor (private equity or otherwise), a former banker, or CPA, and someone who starts analyzing a company by looking at the balance sheet. Money is very conversant in all elements of investment, returns, capital structure, working capital issues, and ROI. Money is a great resource to have on the board, particularly companies with a steady-state CFO in a dynamic operating environment. Every board needs at least one Money, and having an experienced resource in this role can help with everything from making good operating decisions to opening doors with new prospective financial partners.
Dealer
Dealer is the marketer and salesman who possesses great understanding of the market, customer, product, branding, and messaging. Dealer is often heavily experienced with products or services that are consistent with the company, and is probably an industry veteran with multiple ties to competitors, suppliers, wholesalers, and customers. The importance of this resource cannot be overestimated, as a great many boardroom decisions have fallen absolutely flat in the market without this touchstone. Growing and nurturing this director is very important, and making sure they have a say in almost every topic is critical. Don't let them fool you. Dealer will constantly tell you they know nothing outside of marketing, but this could not be further from the truth.
The Gang
Truth be known, it takes a little bit of each “gang member” to truly round out an effective board of directors. Most directors can probably see a little bit of themselves in each gang member, but the reality is that most directors typically fall dominantly into one or another type. Whether you are the majority owner, private equity backer, or senior management, it is very important to understand your board — who they are, what each brings to the table, and how to “manage” them for the maximum benefit. Having a strategy round engaging this group will prove very beneficial in the effectiveness of your board.
The author can be reached through LinkedIn or at rstow@stocoinc.com.