Wednesday, May 6, 2009

CEO Peer Groups: Wells Small Business Round Up

Putting a CEO Peer Group to Work for You

CEO or peer advisory groups are becoming an increasingly common tool to help non-competitive small business owners voice and address their toughest challenges, while creating excellent networking opportunities. Groups like the Entrepreneurs’ Organization, Inner Circle, Women Presidents’ Organization and a host of others have sprung up nationwide, all geared specifically to the needs of the small business owner.

“Participating in CEO peer groups is the best thing I’ve done in my business career,” says Andrew Lutts, CEO at website hosting and e-mail marketing services firm Net Atlantic, Inc. “I’ve made lasting friendships and built strong peer relationships, and gained new insight and perspectives on how others face similar challenges and opportunities. I’ve also gladly given business to other professionals in the various CEO groups I’ve participated in, as I became familiar with their services and developed a sense for how they provide value to their customers. In addition, the groups have helped me find great area business professionals to serve on Net Atlantic’s Advisory Board.”

These groups, typically composed of non-competitive small business owners and managers, are designed to facilitate the exchange of ideas and knowledge of peers that have faced similar challenges to growth and other aspects of their operations. “They provide a sounding board, as well as a place to pick up new ideas for running a business,” says Nancy Shenker, Principal at small business consultant theONswitch. Because you’re so close to your own business, a peer group can offer impartial, objective source support and advice. Peer groups also offer learning opportunities for their members, helping participants stay abreast of trends. And because of their non-competitive nature and strict confidentiality, members have a safe haven where almost no business issue is out of bounds.

“I view group meetings as a monthly, virtual ‘Board of Directors’ meeting with others who are experiencing or have achieved and overcome various common business challenges,” Lutts adds. “This kind of monthly objective review can be extremely helpful to a business owner who has nowhere to turn and is unsure about who to ask about certain issues, because of the nature and sensitivity of some issues.”

While each group functions differently, most are led by highly skilled facilitators. Regular small group meetings (typically monthly) are often supplemented with guest speakers, one-on-one sessions and, at times, social events. Prices vary by the company facilitating the meetings (e.g., prices may be set by local facilitators, while others have flat annual fees).

Perhaps what makes these groups effective is the diverse array of business professionals they encompass. “One group I was in had a fantastic mix of professionals: an accountant, human resources person, public relations professional, telecommunications expert, marketing person, finance and investments, technology consulting, veterinarian and more,” Lutts says. “The diversity strengthened the group. It was surprising to learn that, despite the various industries, we all experienced similar challenges in our businesses. It was a real help to know that what ever kind of question or topic came up, it could be accurately addressed by the ‘expert’ among us in that field.”

Ultimately, any peer group’s success is determined by its members and its facilitators. “If you’re considering joining a group, be sure you can make a commitment to actively participate and contribute,” Shenker observes. ”You’ll gain the greatest benefit by being open to the experiences, insights and perspectives of others. These relationships can be key to helping a business—and its owner—evolve and grow.”

To find a CEO peer group in your area, start with a web search or speak with your local Chamber of Commerce. You can also find state-by-state listings for groups specific to small business using the Edward Lowe Foundation’s Find a Peer Group search tool.

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