The importance of training your directors

The key to success in any business is good training. You can’t expect anyone to perform well and continuously improve in a role that they don’t fully understand, hence great quality and well delivered training is a vital investment for your business. Company directors are at the head of the company, and make some of the most important decisions, so it stands to reason they should be at the front of the queue for training.

What does a company director do?

At the very top of any company sit the shareholders and the board of directors. Shareholders are the people who have invested in, and thus own the business. Company directors may or may not be shareholders, but their job is the most important to the functioning of the business. Directors make joint decisions regarding strategy, finance and operation, essentially ensuring the direction and success of the business.

Individually, one of a company directors’ main responsibilities is to participate in board meetings in order to take the vital decisions that govern how the business operates. However, they may also be nominated to lead decision making in one specific area of company processes and policy on their own as well. A great way to find out more about working as a company director is our company director training course .

Company directors for international businesses are involved in the same processes as those in domestic companies, with a few small additions. A director of an international company will also need to understand:

  • Differences in legal systems around the world
  • How different jurisdictions affect business decisions
  • How cross-cultural differences can affect business relationships and how to work with these difficulties

Our international director training course gives an excellent overview of this.

How can training help directors to run effective board meetings?

An educated board makes better decisions.

All of your directors will have been chosen for their specific expertise in business, but tools and training are always beneficial in harnessing this knowledge and getting them to work effectively together. Training will help directors to recognise problems and difficulties early and be able to work together to find better solutions.

An example of this is where businesses involved in social enterprise need to understand specific legal requirements related to charity work and securing funding before they can begin. This training focuses on the specific differences in such a company and offers hints and tips to ensure the smooth running of the business.

Training helps directors to choose the right board members

Before you can hold a board meeting, you need to assemble your board. It is tempting to just include everyone at the top levels of your business, but bringing in too many opinions can make for difficult and unrewarding meetings. The right team will have complimentary skills (someone with financial skills alongside a visionary with lots of ideas for expansion, for example) and personalities (optimists and pessimists for a grounded final outcome). Training helps directors to identify the right balance of skills, expertise and personalities for success.

This process can be more difficult for some businesses. Family businesses, for example, can struggle to overlook personal connections, which is what our family director training workshop deals with.

Training helps meetings to be concise and useful

Board meetings represent the primary arena in which the decisions of a business are made. All critical decision affecting the business will be debated and discussed, and the chairperson will have to make sure they keep order so that chaos does not result.

A good board meeting will have:

  • Strong objectives
  • Planning in advance
  • A strong chairperson
  • An agenda and supporting documents
  • A strict order
  • A return (i.e. something is accomplished by the end)

Directors need to understand how to manage each of these elements so that it is second nature, and so that time is not wasted and meetings are not left without resolution. Our simple effective board meeting training deals with this quickly and comprehensively.

Training helps create effective organisational change management

For a business to be successful it must be open to change. The market doesn’t remain the same so it stands to reason that for a business must be flexible and incorporate decisive change management policies to remain on top. Figures show that up to 70% of change initiatives fail, due to employee attitudes and the changeover not being managed appropriately. Training around how to lead changes could help with a smoother transition. A good director will:

  • Identify what needs to change and why
  • Determine how this will impact both the company and its employees
  • Work out how best to communicate this change to the rest of the company, and manage feedback both good and bad.
  • Be able to provide support and implement contingency plans

Training is key to successful business planning and decision making

It is important that directors are involved in the creation of plans and strategies that are meant to further the interest of the business and maintain its success. Business plans are not only used when a business starts – they are used throughout the lifetime of a business to identify, implement, and monitor new processes, products, and services.

Writing a business plan helps you:

  • Be sure that your business idea is strong and makes sense
  • Identify potential issues
  • Plan your business operations, sales and marketing objectives
  • Plan your finances and create a financial forecast (our course offers an excellent workshop on this)
  • Convince others of the strength of your idea and seriousness about the company
  • Helps you to review where you are at periodically so that you don’t stray off course

Try our business planning and strategic decision making course for a tailored approach to business planning.

For more help with implementing your business plan, our helpful workshop will teach you how best to:

  • Allocate resources
  • Communicate your business plan to others
  • Monitor results
  • Update and adjust the plan over time

It is key to the success of your business that you review and update your business plans at least once a year, to ensure that you are on track but also to make adjustments. You may want to consider putting together a new strategic action plan every 12 months, and training will be essential to ensure that directors know how to review and adapt.
 
To find out more this course, or any of our popular courses, please speak to our team by calling us on 01582 714 285 or email info@tihtc.co.uk.
 

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