25 BLUNDERS
YOU CAN’ T AFFORD TO MAKE
AS A DIRECTOR
By Alex Bäcker, Ph.D.
"NEW DIRECTORS WILL DEFINITELY FIND IT VALUABLE”
—TOM PROULX, INTUIT CO-FOUNDER
ABOUT THIS SERIES
LEARN FROM THE MISTAKES OF OTHERS. YOU CAN’T LIVE LONG ENOUGH TO MAKE THEM ALL YOURSELF.
— ELEANOR ROOSEVELT
This book is the inaugural volume in a series about mistakes. The series aims to bring
mistakes into the mainstream. Far from being something we shy from, hide or be ashamed
about, mistakes should be brought to light to promote learning from them.
Although mistakes may have considerable potential for teaching, research has emphasized
that people are often defensive when their mistakes are pointed out and will even continue
with their present course of action despite growing costs . Structural equation analyses on 1
teams working in organizations in Shanghai, China, suggested that teams were able to learn
from their mistakes to the extent that they took a problem-solving approach. This
orientation in turn was based on developing cooperative, not competitive, goals within the
team.
A study of medical trainees showed that many had an intense emotional response to the
idea of committing errors in patient care. Many expressed role confusion regarding whether
and how to initiate discussion after errors occurred. Some noted the conflict between
reporting errors to seniors who were responsible for their evaluation. Learners requested more open discussion of actual errors and faculty disclosure. Many believed that they
learned the most when harm was caused .
A study analyzing the outcomes of fourteen strategic failures in a very large European
telecommunication firm found that rather disappointingly, the company learned little from
its failures .
There are more than twice as many books about success than books about failure .
Martell writes that the management style most engaging to women places value
on learning from mistakes versus blaming, being open to risk, keeping a positive outlook,
and being open to innovation . Perhaps it is a sign of the lack of enough women in our 6
board rooms that this is not the most prevalent management style today.
This series brings mistakes to the forefront, so you can learn from them and avoid repeating
them. Make no mistake about it: It would be a mistake not to do everything within your
power to avoid the devastating mistakes contained within.
Don’t miss the next volume in this series: 25 Mistakes to Avoid as a Leader.
ADVANCE PRAISE FOR THIS BOOK:
“NEW DIRECTORS WILL DEFINITELY FIND IT VALUABLE”
—TOM PROULX, INTUIT CO-FOUNDER
“I AM KNOCKED OVER BY HOW GOOD YOUR BOOK IS. REALLY WELL DONE.”
—TOM MITCHELL, FOUNDER & DIRECTOR, CRESTMONT VENTURES, MANAGING DIRECTOR, HEIDRICK & STRUGGLES
"THIS IS A GREAT PIECE OF WRITING, SPOT ON!"
—ALEX ECKELBERRY, FORMER CEO AND CURRENT DIRECTOR ON THE BOARD OF TWO BILLION-DOLLAR COMPANIES.
“ THE ONLY THING BETTER THAN READING THIS BOOK BY ALEX BACKER WAS SETTLING A CASE WITH ALEX BACKER”
—LEE LORENZEN, INVENTOR OF THE SINGLE-CART SHOPPING CART, FOUNDER & DIRECTOR OF SHOP.COM FUNDED BY BILL GATES & JEFF BEZOS
“I READ THIS ONE ALL THE WAY THROUGH...THE CONTENT IS GREAT! EVERY CEO AND EVERY BOARD MEMBER WOULD WANT TO HAVE IT. I FOUND THE BOOK FASCINATING TO READ. A LOT OF IT WAS SURPRISING TO ME, AND EDUCATIONAL. I REALLY LIKED IT. I WAS KIND OF PLEASANTLY SHOCKED BY READING A BOOK THAT I THOUGHT WAS JUST FOR BOARDS OF DIRECTORS AND A BUSINESS BOOK AND IT READS REALLY INTERESTINGLY WELL. IT’S WELL WRITTEN AND VERY FULL OF GREAT INFORMATION.”
—JACK CANFIELD, BEST-SELLING CO- AUTHOR OF CHICKEN-SOUP FOR THE SOUL
AND THE SUCCESS PRINCIPLES WHO SOLD 600 MILLION BOOKS
“YOU’RE RIGHT ON SO MANY POINTS. THIS BOOK DOES IMPART TO ME JUST HOW IMPORTANT A BOARD CAN BE”
—STEVE PROCTOR, CEO WHO SOLD HIS COMPANY FOR $100 MILLION
“AN INFORMATIVE AND WELL-WRITTEN BOOK THAT IS A MUST-HAVE FOR EVERYONE WHO SITS ON A BOARD. THE FIRST CHAPTER ALONE WAS WELL WORTH THE PRICE OF THE BOOK.”
—GREGORY WRIGHTSTONE, BEST-SELLING AUTHOR OF INCONVENIENT FACTS
“ALEX, YOU ARE SO ON TO SOMETHING BIG... HELPING START UP COMPANY BOARDS NOT MAKE ALL THE BLUNDERS YOU KNOW OF.... LIFE IS TOO SHORT... YOU PROVIDE THEM WITH AN ADVANTAGE”
—CHRISTOPHER RADKO, FOUNDER, CHRISTOPHER RADKO HOLIDAY DECOR
“ENTERTAINING AND INSIGHTFUL.”
—MATIAS ZIELONKA , PH.D., EXXON MOBILE
“GREAT READ..! IT HAS INDEED BECOME A POCKET BOOK AS I HAVE DOWNLOADED IT T O MY PHONE AND BEEN READING IT ON THE UNDERGROUND OR BUS WHEN AM ON THE MOVE. ALTHOUGH THIS EDITION IS FOR BOARD OF DIRECTORS, YET A LOT OF THE POINTS RESONATES WITH ME AS A FOUNDER. AND ALSO GREAT FOR MY ASPIRATIONS TO BE ON BOARDS. ALREADY LOOKING FORWARD T O THE CEO EDITION. LOVE READING ABOUT YOUR DAD MAKING THE MOST SENSE AT HIS FIRST BOARD MEETING, CASE IN POINT INCLUSION SHOULDN’T BE DEFINED BY AGE, GENDER OR RACE BUT DEFINED BY RETAINING THE BEST TALENTS. BRAVO”
–ELLA ANTWI-TICEHURST, CO-FOUNDER/DIRECTOR, IPD HEALTHCARE LTD
A True Story
Once upon a time, there was a CEO named Alejandro who created a NewCo – let’s call it
NewNess.
For 12 years of his life, Alejandro nurtured NewNess into the envy of its industry.
Since its founding, NewNess had grown an average 59% per year —faster than any public
company in America— and been named Best in its Field six times and Best In the
World three times.
However, in the company’s 13th year, Alejandro made the one HUGE mistake that no
Founder should make.
He chose the wrong board members -– let’s call them Moe, Larry, and Curly.
In five short months, these three stooges went on to make twenty-four easily avoidable
mistakes that almost killed NewNess.
Their twenty-four mistakes and one other mistake that has hurt other companies are
detailed in this book.
Whether you’re a board member or a CEO, I hope you will learn from: The 25 Blunders You
Can’t Afford To Make as a Director.
Remember to treasure this book and keep it handy because NewNess almost gave its life so
that your company will not just survive but thrive.
Alejandro is now living happily ever after writing a series of self-help books.
The names of the people who made the real mistakes in this book have been changed to
protect them, for without their mistakes, this book would not have come to life.
Readers' Success Stories
“NEW DIRECTORS WILL
DEFINITELY FIND IT VALUABLE”
—TOM PROULX, INTUIT CO-FOUNDER
“I AM KNOCKED OVER BY HOW GOOD YOUR BOOK IS. REALLY WELL DONE.”
—TOM MITCHELL, FOUNDER &
DIRECTOR, CRESTMONT VENTURES,
MANAGING DIRECTOR, HEIDRICK &
STRUGGLES
"THIS IS A GREAT PIECE OF WRITING,
SPOT ON!"