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Hiring Outside Directors When Private Companies Don’t Have To: They Bring Change
John Collard -- Turnaround Interim Management Expert John Collard -- Turnaround Interim Management Expert
Annapolis, MD
Wednesday, August 3, 2022

Hiring Outside DirectorsWhen Private Companies Don't Have To

Board Leadership, a Wiley Periodicals LLC publication, published this article by John M. Collard, a turnaround manager and outside director. In this article we discuss the ins and outs of bringing in outside directors to help guide decision-making and bring fresh perspectives.




www.StrategicMgtPartners.com/brdleader.pdf   Formatted Version


Article-of-Interest Summary:


Hiring Outside Directors When Private Companies Don't Have To: They Bring Change


By John M. Collard


You need these guys … to increase cash flow, provide valuable guidance, contacts, and credibility.


Companies committed to going through significant business change (restart, turnaround, transition, generational ownership transfer), anticipating a major liquidity event, need guidance.


Why Add Outsiders to Your Board of Directors or Advisors?

  • Outside directors often increase cash flow and business growth. According to a Forbes/Lodestone Global survey; 97% of companies reported increased revenues and EBITDA, since adding a board with outside directors.
  • Outside directors can be a low-risk, low-cost resource. They bring a new set of skills and ideas to produce benefits, while you maintain control.
  • Outside directors provide an external source of accountability.
  • Outside directors are on your side. These advisors answer only to you.
  • Outside directors add credibility. When it comes time for a liquidity seeking event, outside directors send the message that you are an organization with leadership and guidance.
  • Outside directors bring an independent perspective, develop strategic thinking and planning, utilize their experience and objectivity, provide their contacts Rolodex, find capital to finance the company, and guide transaction activity. Many of these benefits are absent in companies, so the outside influence should be used to your benefit. Remember, the key is for the CEO and management team to listen to the advice given and factor these inputs into their thinking, then make decisions.


Benefits of Outside Directors



Independent perspective

Unbiased advice

Challenge management

Sounding board for CEO

Objective, Mediate conflicts

Strategic thinking and


New directions, Transitions

Incentive-based compensation

Experience and objectivity

New knowledge

Been there, done that

Oversee performance and risk

Accountability, Credibility



Investors, Lenders, Resources

Partners, Customers, Suppliers

Capital infusion

Raise Money, Restructure

Guide offering process

Find capital


Prepare company for sale

Locate interested parties

Negotiate a deal


Create a culture and structure that will withstand third-party accountability to add value to your business. Start thinking as a serious, growing company and prepare for future life as a public company or for increased scrutiny of investors.




About the Author: John M. Collard

John is Chairman of Strategic Management Partners, Inc. (410-263-9100, www.StrategicMgtPartners.com ) in Annapolis, Maryland.  John is a Certified Turnaround Professional (CTP), and a Certified International Turnaround Manager (CITM), who brings over 35 years senior operating leadership, $85M+ asset and investment recovery, 45+ transactions worth $1.2B, new business developed $950M+ and win ratio 3.5 of 5.0, and $80M fund management expertise to run troubled companies, serve on and advise company boards of directors, and raise capital. John has served as CEO, CRO, Receiver, senior executive to turn around troubled entities, and serves as an outside director.  John is enshrined in Turnaround Management, Restructuring, and Distressed Investing Industry Hall of Fame. John is Past Chairman of the Turnaround Management Association (TMA), Past Chairman of the Association of Interim Executives (AIE), and a Senior Fellow of the Turnaround Management Society. John is a co-Founder of TMA. John is Prince George's Business Leader of the Year. John is honored with the Interim Management Lifetime Achievement Award from the Association of Interim Executives. John is honored as Most Admired CEO in Maryland by Daily Record. John is honored with SmartCEO Distinguished Leadership Award.


About the Firm:

Strategic Management Partners, Inc. (www.StrategicMgtPartners.com 410-263-9100)  is a turnaround management firm specializing in interim management and executive CEO leadership, asset and investment recovery, board and private equity advisory, raising money, and investing in and rebuilding underperforming distressed troubled companies. The firm has been advisor to Presidents Bush (41 & 43), Clinton, Reagan, and Yeltsin, World Bank, EBRD, Company Boards, and Equity Capital Investors on leadership, rebuilding troubled companies, investment recovery, turnaround management and equity investing. SMP is celebrating 25+ years of service to its clients. SMP was named Maryland's Small Business of the Year, and received the Governor's Citation, Governor Martin J. O'Malley, The State of Maryland as a special tribute to honor work in the areas of turning around troubled companies and saving jobs in Maryland.  Turnarounds & Workouts Magazine has twice named SMP among the 'Top Outstanding Turnaround Management Firms'. American Business Journals named SMP among the Most Active Turnaround Management and Consulting Firms in Baltimore, Washington, and the Mid-Atlantic Region.  Global M&A Network Turnaround Atlas Awards named SMP as Boutique Turnaround Consulting Firm of the Year.


Strategic Management Partners, Inc.: turnaround managers ready to run troubled companies, recover assets from investments gone bad, advise boards of directors and investors on company viability in distressed situations.  We provide strong interim and operational leadership, strategic planning, financial, defense conversion, sales and marketing acumen developed building organizations in large and small companies, including President of public & private middle-market companies providing solutions to Commercial, Federal Government, International markets. Enterprises range from start-up to $100+mil. Industry expertise: Manufacturing; Job Shop; Engineering Services; Computer Processing/Services/Software/Integration; Communications; Defense Electronics; Aerospace; Federal Government Contracting; Systems Integration; High-Tech; Finance; Marine Services; Real Estate Development; Construction; Fabrication; and Printing.







www.StrategicMgtPartners.com   Turnaround Managers


www.StrategistLibrary.com   or  www.StrategicMgtPartners.com/library/libindx.html


Hiring Outside Directors When Private Companies Don't Have To Published by Board Leadership, a Wiley Periodicals publication.


Hiring Outside Directors When Private Companies Don't Have To Published by Board Leadership, a Wiley Periodicals publication at their site.


Fixer-Uppers: Rebuilding Value Published by Private Company Director


Raising Money Capital Published by Chief Executive Magazine


Is Your Company in Trouble?  Published by Corporate Board Magazine


Managing Turnarounds Phases and Actions Published by RMA Journal


Social Media:

John M. Collard on Facebook at  http://www.facebook.com/JohnMCollard


John M. Collard on LinkedIn at  http://www.linkedin.com/in/JohnMCollard


John M. Collard on Twitter at  http://twitter.com/JohnCollard


Collard on NewsReleaseWire



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Name: John M. Collard
Group: Strategic Management Partners, Inc.
Dateline: Annapolis, MD United States
Direct Phone: 410-263-9100
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