Building success with a ‘personal board of directors’

As they look for ways to advance their careers and reach a higher level of professional success, a growing number of agents and financial advisors are using a ‘personal board of directors.’

A ‘personal board of directors’ is a group of experienced professionals who can provide counsel, advise on navigating challenges, offer support and motivation during important decision-making times, and hold them accountable in their journey toward success.

In a recent interview, John Pojeta, vice president of business development at The PT Services Group, and Michelle Hubert, principal at Korsgaden International, shared some of the benefits advisors can gain by making effective use of this important group of people.

According to Pojeta, the idea of a personal board of directors seems to be gaining more traction with those he works with at The PT Services Group, although he is hearing about it among smaller firms.

“Perhaps the most successful one I’ve witnessed is an advisor who has structured his personal BOD to provide feedback about his services, new ideas and innovation, suggestions to improve his business model, as well as advice about all aspects of business development,” he said.

Adding perspective for independents

Pojeta thinks that a personal board of directors provides the most value and perspective to smaller independent firms, which, at times, are more isolated than their larger counterparts. “It is part of the other side of the coin with running an independent firm that you need to be more proactive relative to innovation. It’s not a bad thing – just a reality,” he added.

The board is typically composed of local specialists, including a banker, a real estate agent, an insurance wholesaler, and possibly, what is perhaps the most useful – several current clients, Pojeta said. They serve as a network of experts, with the current clients providing feedback on what their experience has been like in working with that advisor and his or her office. The potential side benefit is a network of centers of influence and people he can refer his clients to, whom he trusts with services he doesn’t provide.

Pojeta thinks that there are several benefits of using a board like this. First, he said, are the unique perspectives and expertise that each member can bring. Second, particularly if you have a small practice, he said, “this board can expand your knowledge base, and lastly, you can augment the talents and perspectives of your practice. For example, if everyone in your office is highly analytical, perhaps the addition of a creative thinker can help to shape your work in new and exciting ways.”

Additionally, Pojeta said that he learned, in this particular case, it is not a paid board. “They meet twice a year and one of the meetings includes a high end thank-you dinner. I would imagine there are many approaches to a BOD – some are more informal like the situation described, and others are more formal,” he added.

More benefits of a personal BOD

Insurance advisors benefit from a personal board of directors by gaining diverse perspectives and advice to navigate complex career challenges, Hubert said. Ideally, this board should include four or five individuals from various backgrounds who are not emotionally invested but believe in the advisor's potential. Members could range from industry experts and mentors to peers from different fields, ensuring a mix of professional skills and experiences.

“Utilizing such a board offers insights into decision-making, expands networks, and fosters personal and professional growth,” Hubert said. “Advisors should engage board members during key decisions, seeking their guidance while respecting their time and expertise. Regular, respectful communication and a flexible approach to the board's composition as one's career evolves are crucial for maximizing benefits.”

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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