Alejandra Rosado

TEAM 4
Mede – MTY

Institutional Configuration: Professional board member

Guest Speaker Rogelio Velasco
Institutional Configuration: Professional board member Guest Speaker Rogelio
Velasco
The first step to understand well the institutional configuration is the impact of a
board in the company and the potential results in the long term. When the speaker
started with the conversation, he asked us Why the company need a board? And
the question it is not easy to answer because there are different reasons which
depend on the decision's maker point of view, for instance, many of them think to
avoid creating an institutional configuration and aligning the strategy and actions
inside of the company.
After the reflection about the importance of the board, the speaker mentioned the
characteristics of a good board, the active board needs to meet around 3-4 times in
the years and have almost 3-4 independent boards members, as soon as possible
the company should start with the board, the results for a company with an active
board shows these companies to be successful. Also, the fundamental objective of
the Directory is to foster and advice the CEO to make the purpose for which the
company exists. Whether the company lasts over time or generates money are
secondary objectives of the company and the board of directors. They are equivalent
to living many years or breathing, as life goals of a human being, important but
secondary.
The conversation shows the owners fears about the creation of the board, but how
much should pay for this labor? The amount is around MXN 10,000 – 120.000 per
year, then the amount it's not an expense it’s an investment. Another remarkable
thing is the woman vision because they foster the dynamics and results.
The value added of the board shows in the corporative strategy, CEO evaluation. In
this case, a board helps to make better decisions because it provides alternatives
and different point of views to solve a problem or to take advantage of an opportunity.
Furthermore, a board aids to manage risk and fosters to develop a structural
organization and also the composition. On the other hand, a board also helps in
terms of succession because it guarantees the effectiveness of succession and
provides the company with a better relationship with the CEO and its succession.
Base on that, they have to select, control and, when if it is necessary, replace the
main executives, as well as set their remuneration.
Finally, a board should bring freedom, fresh perspective and helps to maintain a
cooperative team. They should be active listeners and facilitators who can
communicate effectively and they must be ready to answer questions and objections
trying to identify and develop potential tasks. In addition, the Board of Directors must
be able to exercise, independently of the administration, an objective judgment on
corporate matters which is the fundamental strategy. Otherwise, they have to
participate in productive discussions and ensure transparency in all communication
to members, stakeholders, and the public which finally will impact the results in the
short and the long term.
Alejandra Rosado
TEAM 4
Mede – MTY