The Case for a Diversified Board

The Case for a Diversified Board

The Case For a Diversified Board

Written by Rob Edwards

May 14, 2019

10 Ways Your Board Can Problem Solve Faster   

Considering a board of diversity is not merely suggesting to check a box in order to establish company compliance. In a greater sense it is about putting together a team with diverse skills, competencies, philosophies and life experiences. Complex situations demand for greater insight. Multiple points of view present a broader picture and offer a wider context into problems that need to be solved. It is becoming more clear that one of the most under-utilized strategies for company success is board room diversification.

 

 

Right now the U.S. plastics industry is experiencing phenomenal economic growth and many investors are itching to take advantage of the opportunities. However, with increased customer demand, there is also a demand for plastic processors to deliver faster and more efficiently than ever. My friends, this is where the “rubber hits the road”.  

Unrelated to plastics, but well known for his exceptional level of success in creating high performing cultures, former CEO and Executive Chairman of Dunkin’ Brands Nigel Travis commented on the subject during a recent podcast stating, 

There is an evolving trend where you have to have younger board members

Later he noted

Now there is a pretty significant gap in the way that people are educated.

It is no secret that the way that problems are solved today are much different than they were even 5 years ago, let alone 20, 30 or 40 years ago. Yet in the plastics industry studies show that many boards are still primarily made up of people that are middle-aged. To compound the problem, the majority of board members tend to consist of multiple people with similar backgrounds. Some studies show that up to 70% of boards are comprised of members with a financial, business development and/or investment background. This heavily narrows the insight of how business should be conducted from a strategic standpoint.  

 

 Here are the top 10 reasons to diversify your board.   

1. It is a more accurate view of your entire company
Insights have more meaning when the information can be trusted. Robust discussion from multiple perspectives gives further insight into potential bottlenecks and/or opportunities for growth. 

2. In a problem-solving board, healthy debate leads to better and more competitive decisions.
A healthy debate often leads to a better answer than any one person can come up with on their own. Hidden problems exist with any potential solution if the problem hasn’t been looked at from a 360 perspective.

3. Different backgrounds mean looking at the solution in a variety of ways and often exposes the best answer
Sometimes that answer to a problem is more complex than the business situation alone.  Culture, skills, experiences and variable backgrounds could be the reason your company is failing to achieve greatness. 

4. Disrupting the status quo leads to more innovative thinking.  
Innovation comes alive in an environment of challenging the status quo. Just because a problem was solved 1 year ago, doesn’t mean there isn’t a better answer. Technology continues to push the boundaries, and if companies aren’t careful, they will find themselves wasting time and resources while their competitors gain more ground.  Having someone with a technical background is a MUST on company boards. 

5. Your clients and customers are diverse in their thought process 
There may be a better way to approach your clients. Perhaps their values are different than yours. Getting a more diverse perspective may sway your strategic approach.  

6. Provides a wider scope of solutions to existing/future problems
It’s easy to think a problem is solved when it really isn’t. Band-aid solutions often disguise themselves as a solution in the short term, but ultimately come back around to reveal the truth. With a robust scope companies can put together comprehensive solutions leading to not only short term success but sustainability. 

7. Counsel from a variety of people
Leaders who receive counsel from a full array of perspectives are often able to fix problems much quicker than those who will only listen to a single group of people. Rather than waiting for a problem, get ahead of it from a wide spectrum point of view.  

8. Moral is improved when there is a sense of your thoughts being valued
People like to be respected and heard. When they feel like they can contribute they feel valued, and they are less likely to look anywhere else for work.  Putting together a diversified board speaks volumes to the overall workforce. 

9. Improve your reputation and brand
You can gain a ton of insight from a diverse group of people.  Especially as it relates to your products and services. Everyone has ideas for internal improvements and well as external. Solve problems, then branding and reputation will automatically follow.  

10. Adaptability to solve problems increases
With your leadership team driving a culture of problem-solving from a wide point of view, people will follow.  Rather than solving all the problems, get the solutions from your staff and save time and money. Nigel Travis on tariffs, competition and the need for a ‘Challenge Culture’. 

Advances in technology and innovations are more complex than they have ever been.  Top companies need to have robust strategies if they are to be successful in the future.  Diversifying your companies board is a great way to gain insights that can be leveraged for the benefit of your company.  

 

These are my top 10’s, do they align with yours?  What is your company putting into place to compete in manufacturing?  I’d like to hear your thoughts, as I read every one.  

 

***COMMENT ON LINKEDIN OR AT THE VERY BOTTOM OF THE PAGE***

Rob Edwards

Rob Edwards

President | Executive Search

Rob is currently the President of Molding Business Group’s Board, C-Suite and Leadership Executive Search Services.  MBG specializes in plastic manufacturing leadership search, and has earned a national Top 10 ranking.  With over 3,000 placements our Executive Search Team is passionate about building talented businesses by working with Stakeholders, Executive Teams and HR to place and developing top leaders in the plastics industry.

Rob also serves on the Forbes Coaches Council. 

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The Modern Day CEO

The Modern Day CEO

The Modern Day CEO

Written by Rob Edwards

May 14, 2019

 What Does it Take to Thrive as a CEO?  

The C-Suite is a place many aspire to, but few ever make it. Even fewer manage to have industry-wide impact, or make a lasting name for themselves.  Richard Branson is a Top-level executive and has had a  profound impact on everything from company culture to the bottom line, even when they aren’t moving and shaking, he is always thinking ahead.  So what traits can we learn from the most successful CEOs? 

 

 

Leadership  

Leadership is a vague and elusive term often applied to a desire for a skillset that inspires and motivates
others. It’s a characteristic you will see mentioned as a key desirable in some form or fashion in
any and every CEO job search out there. What do they mean when they specify ‘leadership,’
and more importantly, how do they measure it?

First and foremost rather we’re talking about large, mid-size or small companies, culture is a top driver for consistent company performance and well-being.  Rather you like the concept of influencers or not, CEOs are influencers, good or bad.  This is why it is imperative that top-level executives should embody the qualities that they want to see in their company.

If putting in hard work, practicing ethical behavior in the office and outside of it, and diligence
are all coveted traits at all levels of a company, the CEO will demonstrate these, and more. This
is leadership by example or demonstration.

Decisiveness, in making a plan and moving forward with implementing that plan, and
demonstrated examples of such decision-making ability shows this valuable leadership skill.

Demonstrating compassion and empathy through their efforts, and most especially during
difficult decisions are also traits associated with leadership ability. They are measured by the
manner in which an individual handles difficult conversations and situations within their role.

Vision

Vision shows a drive to succeed, a plan for the future and a detailed method to get a company to the goal that vision represents. A goal without a plan is nothing but a dream, and top-level executives know this to be true. Not only will they have a goal, but they’ll have a plan for reaching that goal. This will include how to address the inevitable set-backs and obstacles that arise along the way, including things that are unable to be foreseen.

Ability to Execute

Choosing a management team and providing them with the information and resources that they need in order to effectively do their jobs and execute the high-level strategy that has been created is a key marker of an excellent CEO. A great plan requires action in order to be fully realized. Action often involves delegation and knowing who to delegate tasks to, and when, is an important part of the CEO role.

 

Willingness to Listen

Listening needs to happen at all levels of an organization, and the CEO is no exception, in fact, they set the tone.  Whether this is listening to items brought to them by management, or things that have worked their way up the chain of command, knowing what is impacting the results of the plan they have set out to realize will have a marked impact on whether or not the plan is successful.

 

Knowing When to Say No

I think we all know that not all ideas are good ones.  However, the trap that many CEOs fall into is distractions.   Emotionally so many things appear to be urgent and important, and often they are, but learning which items should take priority is a must.  This means CEOs must be able to turn down enthusiastic and well-intentioned requests or ideas, including their own. Knowing when to say no to something, and the ability to elaborate on why it is a no so will set apart a CEO from his or her peers.

Learn How to Prioritize 

When demands are coming from a million different directions, it can get quite overwhelming, and easy to mis-prioritize what’s important.  The long-time philosophy of many successful CEOs, including Richard Branson, put their staff first, customers second and Shareholders third.  Even though this may spark some debate, the results speak for themselves.  

Learning From Failures

Everyone fails at something. What sets the C-Suite apart tends to be exactly how they handle that failure, what they learn from it, and how they apply it to future endeavors. A proven executive likely has a few failures under his or her belt. What is more important than the failures themselves is what they learned from them and how they can apply those lessons to a new role that results in positive results.

 

Many people believe it takes a cutthroat mentality and a hard head to succeed at this level. Do you agree? What does it take to make it as a CEO? We want to hear your thoughts!  

***COMMENT ON LINKEDIN OR AT THE VERY BOTTOM OF PAGE***

Rob Edwards

Rob Edwards

President | Executive Search

Rob is currently the President of Molding Business Group’s Board, C-Suite and Leadership Executive Search Services.  MBG specializes in plastic manufacturing leadership search, and has earned a national Top 10 ranking.  With over 3,000 placements our Executive Search Team is passionate about building talented businesses by working with Stakeholders, Executive Teams and HR to place and developing top leaders in the plastics industry.

Rob also serves on the Forbes Coaches Council. 

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5 Ways to Attract & KEEP Talent

5 Ways to Attract & KEEP Talent

A CEO’s responsibilities are cumbersome in any industry, but especially in the volatile environment of plastics.  Consistently talent acquisition and retention make the top 3 concerns of Plastic Executives and company Shareholders.  CEO’s are aware of the tight market for talent going into 2019, but with many companies having too many fires to put out, often the topic rarely gets addressed with viable solutions.  CEO’s need a management team that they can rely on to execute the company’s vision and mission. 

Before I get started I should note that companies who lack vision, values/culture, metrics and strategy are often the victims of the “revolving door” when it comes to attracting and keeping their leadership team.  Often this is because there is no foreseeable game-plan for talent coming on-board.  They are not sure where they “fit in” with the company.  A good example of this concept can be found in the sports world where recently Kyle Van Noy was a guest on “Pardon My Take” podcast.  At 45:20 into the recording he had this to say about the Patriots compared to the Lions where he previously played.  

“When I got there (Patriots), it was like, they had a plan for me it seemed like. That plan got bigger with how I played. With that being said, I didn’t know that to begin with because I’d been in Detroit, where I was kind of told ‘We don’t know where to put you.’ And I’m like, ‘Well, why did you draft me?’ You know what I mean? I had my own coach telling me ‘I don’t know where to put you.’ That’s kinda crazy.”

So with that said, here are my top 5 tips to attracting and keeping Top Performing Leaders. 

1.  Recruit Properly

Believe it or not, retention actually starts before the hire.  A-Players are highly sought after, and command a different type of recruitment process to secure them.  Most of the time they are not “looking for a job”, but they are open to opportunities.  If you, or anyone in your management team does not convey any real interest in the candidate during the interview process, they will not have a real interest in your company.  The recruitment process needs to be compelling to secure dynamic leaders.

 

2. Envision and Excite

Envision them fitting in your company’s business plan, not just filling a need.   Teach your Hiring Management Team to think the same way about prospect candidates.  Anyone who has options has no interest in joining a company who desperately needs to fill a need without showing any real vision for them.  They will sense it like a shark in bloody water.  Even if you do manage to hire them, they will be packing their bags if they can’t see where they fit.  Top leaders want to contribute to the success of the company, and they want to have a goal to strive for.  Get them excited about your company (products and services).  Articulate where they fit in your company before, during and after the hire. 

 

3.  Get the Most Out of Them

In lean there are 8 wastes, and one of those wastes is Non-Utilized Talent.  Unfortunately during the interview process this is often overlooked.   Top leaders tend to be good at many different things, and this should be teased out during the interview process.  If you haven’t done that in the past with your current leadership team, then take a moment to sit down with them and assess their capabilities as it relates to any potential needs in your company.  Understand where they can give the company the most value.   

4.  Give Them Permission to Challenge the Status Quo

Status quo far too often becomes default mode.  With technology and best practices changing (more often than we’d like) regularly, it’s important to have a wide-variety of views into solutions to complicated problems.   In a podcast that I did with Nigel Travis, former CEO of Dunkin’ Brands, he talked about the importance of a challenge culture and how that attributed to the grand success that Dunkin’ Brands has had under his leadership.  The challenge culture gave the leadership team multiple perspectives on problems or opportunities that needed to be addressed, and they were able to compete at a very high level in their industry because of it. 

5.  Remind Them that They are an Asset… Wait, show them! 

Without stating the obvious, one of the ways that you show people that they are an asset is through words of affirmation, but as they say, words are cheap.  Now before you throw your hands in the air, let me suggest that the saying didn’t just show up out of nowhere.  Most of us have experienced leaders who say things that they don’t mean, or make promises they don’t keep.  Perhaps that’s not your style, but that doesn’t mean it’s not in a person’s schema.  People like to be told and shown appreciation.  As we all know, one of the best ways to convey to someone that they are appreciated is through bonuses, raises, etc.  Find out what they value.  

Bonus:

6.  Get Rid of the Bad Apples:

We all know that saying that one bad apple ruins the bunch, and it’s true.  Too many times companies keep leaders that don’t exemplify company values, and often these leaders seem to have an uncanny ability to cause turnover at subordinate roles, which again points to the importance of a company having a value/culture system.  It is much easier to point out leaders that don’t fit your organization if you have a system in place.  Systems tend to point them out like a sore thumb.  Of course, there is also the possibility that you’re the problem.  That’s okay, but if so, then own it – and don’t make an excuse.  There are plenty of extraordinary executive coaches that can guide you in this area.  For goodness sake, Tom Brady is probably the best quarterback in history and he has a coach, so perhaps it’s worth considering a mentor to help you achieve your goals. 

I wish I could say that this is rare, but it is certainly not.  There are way too many companies not addressing poor management, which in turn causes the greatest amount of attrition, and ultimately can cause a company to fail completely. 

To learn more about Molding Business Group and how we help transform companies, check out the rest of the site – and make sure you subscribe to get FREE updates on growing your plastics business

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The Case for a Diversified Board

The Case for a Diversified Board

The Case For a Diversified Board 10 Ways Your Board Can Problem Solve Faster    [dsm_perspective_image src="https://moldingbusinessgroup.com/wp-content/uploads/2019/05/top-level-executives-.png" _builder_version="3.22.6"...

The Modern Day CEO

The Modern Day CEO

The Modern Day CEO What Does it Take to Thrive as a CEO?  The C-Suite is a...

5 Ways to Attract & KEEP Talent

5 Ways to Attract & KEEP Talent

A CEO’s responsibilities are cumbersome in any industry, but especially in the volatile environment of plastics.  Consistently talent acquisition and retention make the top 3 concerns of Plastic Executives and company Shareholders.  CEO’s are aware of the tight market...

Survey:  What Do Middle Market Plastic Mfg Investors Look for in a CEO?

Survey: What Do Middle Market Plastic Mfg Investors Look for in a CEO?

A Survey of 100 Middle-Market Investors

 

Being the CEO of a middle-market plastics manufacturing company requires a plethora of outstanding qualities that can move a business forward. Company owners are looking for competitive leaders who can navigate the challenges of the industry and win. If companies are to survive the highly competitive world of plastics their CEOs need to be skilled in data perception, strategy, technology, organizational relationships, continuous improvement and more.

What Background Do Investors Look For?

In a recent case study of over 100 middle-market plastic mfg investors, we asked them what primary background they most like to see in a CEO. Operations came in at number one, while sales and finance trailed.

●     Operations 49% – With long term objectives in place, an exceptional operations leader can break down company goals into smaller targets that increase overall operational performance and customer satisfaction.

●     Sales 32% – With margins being conservative in the plastics industry, it is essential to find a Sales leader who knows how to develop a sound strategy and strong value propositions, combined with the capability to build up a sales force that will coordinate with internal teams while not over-promising to the customers – all while keeping an eye on stretching the margin with each solution provided.

●     Finance 9% – Although finance came in 23 points lower than sales, it should be noted that plenty of middle-market plastic mfg CEOs came from finance – especially those with strategic M&A experience.

Survey Results Summary

  • Operations
  • Sales
  • Finance
  • Other

Takeaway

There are many characteristics that middle-market investors are looking for in a CEO. While it’s impossible to be great at all things, this is a little piece of insight that I hope will help you to start thinking about forging your career.

Forbes Top 10 Executive Search Firm

MBG Ranked by Forbes… Again

Written by Rob Edwards

November 8, 2018

#10 out of 250 Search Firms in the Country! 

For the second consecutive year, Forbes.com, a leading source of reliable business news and analysis, enlisted the services of research firm Statista to identify America’s most well-respected recruiting firms. Statista compiled two lists of search firms: “Executive Recruiting,” those firms focused on roles with at least $100,000 in annual pay; and “Professional Recruiting,” firms specializing almost exclusively in positions of under $100,000 in annual pay.

 

How did they determine the results?   

To determine the best recruiting firms, Statista surveyed 30,000 recruiters and 4,500 job candidates and human resources managers who had worked with recruitment agencies over the last three years. Respondents were asked to nominate up to 10 recruiting firms in the executive and professional search categories. Firms could not nominate themselves; last year’s findings were considered. More than 14,500 nominations were collected, and firms with the most recommendations ranked highest.

MRI Network (identified as Management Recruiters International, Inc.) was ranked #10 out of 250 firms in the Executive Recruiting Category. 

Click here to read the Forbes.com article and see the full rankings list. The Network was also ranked #7 in the “Professional Recruiting” category, a significant improvement over last year. We selected licensing rights in the Executive Search category to maintain consistency with our 2017 messaging and to position MRINetwork in the more prestigious category.

Molding Search Group is one of the top producing offices in the MRI Network, conducting 143 leadership searches in the plastics industry in 2019.     

 This prestigious ranking recognizes the caliber of the talent and the value of relationships that the MRINetwork professionals deliver throughout the year.

If you need a company that truley understands the needs of the Executive Team,

MBG is it. 

Molding Business Group provides turn-key solutions to Executive Teams and Company Stakeholders in Plastic Manufacturing and Supportive Industries.  Their services include M&A Advisory, Enterprise-Wide Lean Transformations, Business Consulting and Executive Search.  

To set up an appointment with our team members click the button below.  

Learn more about us.

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