A few years ago one of my mentors was telling me about a story at Starbucks.  He was a Senior VP at Starbucks reporting into Howard Schultz.

Years earlier, Howard had called my mentor on his cell phone and asked ‘Why is the letter B not working on the signage at the 50th & Wallingford location’ in Seattle.

My mentor laughed out loud and responded ‘Really?, Howard is that really the question you should be asking me when you’re CEO?’

Howard frustrated replied ‘Yes, why isn’t the sign working?’  And my mentor replied ‘I don’t know. I’ll check. And I’ll get it fixed. However, if we’re really going to grow this brand our leadership team needs to ask leadership questions.’

‘Howard, instead of asking why isn’t the letter B working we need to be asking questions like this instead…’

‘I noticed the letter B on a sign at 50th & Wallingford isn’t working.  What systems do we have in place to ensure that all letters, on all signs, at all locations, in all countries, are always working?’

My mentor was right.

Entrepreneurs all too often ‘Major in the Minors’ and get stuck asking questions about the details.  And yes, the details matter.  And the details will always get fixed.  However, instead of just asking the question about something specific like a letter on a sign not working, try using the details as specific examples to ask larger more systemic questions. People don’t fail, systems do.  Look deeper in the systems that need to be fixed or created.

Start asking the right questions and you’ll grow your company too.

As a Business Mentor & CEO Coach to growing companies I recommend that companies that want ot grow quickly should have Board Of Advisor meetings at least four to six times a year.  Each meeting should be three to four hours in length.  Meetings should cover questions sent out at least a week in advance to board members.

After roughly one hour, effective board meetings should shift into creative discussion, insight gathering and debate around two to three critical areas the company is working on. If the meeting is run properly, it should be less like a presentation and more like a group discussion. Challenge each other in a constructive way in order to gain the best possible insights and a sound consensus.

Reviewing financial statements are also worthwhile at these meetings as board members tend to ask stuff that employees do not.  Reviewing financial statements with your board WILL save and make you money long term.

Lastly, each member should be adding to all topics and not just giving advice from their area of specialty.  Desire everyone’s experiences and questions on all topics being discussed.  If the marketing person only chimes in during marketing discussions then you will miss out.  Encourage people to speak beyond their area of specialty to maximize their perspective.

Even if you have a CEO Coach or Business Mentor like me helping you grow – you absolutely should be building out a proper Advisory Board too.

Many CEOs miss out by not implementing a board for their company. Here are some keys to creating a high-performing board:

1. Know what a board does: The board advises and helps hold accountable the CEO and leadership of a company. The Board of Advisors can be comprised of any mix of internal and external members the CEO wants.

2. Recognize difference between Board of Advisors and Board of Directors:  This hit me while I was speaking to a group of EO members before a Berkshire Hathaway shareholders meeting in Omaha.  A Board of Advisors cannot fire the CEO while a Board of Directors can.  This difference calls for different people on each type of board, and it’s important to scout for them differently.

3. Have a clear painted picture: The more clearly a CEO paints the picture for the board, the better advice the board will give. See more on that here. You want the board to be thinking ahead of where the company is today. Too often board members get embroiled in tactical, day-to-day or urgent matters when their time would have been better spent discussing the balance sheet, or how they’d handle things like massive currency fluctuations, recessions, continued hyper-growth, etc. One of the board’s goals should be to stay ahead of the vision of the company.

4. Find the right people: Look for company builders for your board. Too many people make the mistake of putting lawyers and accountants on their board, whom tend to give advice around why you shouldn’t do things versus what you should do. Entrepreneurship is risky, and taking advice from employed lawyers and accountants can significantly stifle your growth or misdirect you.

5. Get a 3-5 year commitment: Stack your board with company builders that are LONG TERM.  This will cause them to have a vested interest in the outcome and allow them to get deeper into the psyche of the company.  Fly-by-night experts should only be used for certain tasks, not long-term projections and ongoing advice.

6. Surround yourself with giants: Taking advice from people who have led companies larger than yours is critical as you grow, and the complexity of your systems and strategic issues evolve.  Find people that intimidate you a little bit.  This will cause a reverence and respect, and it will be easier to take their advice.