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Stick to a Consistent Format. Most peer groups meet monthly for anywhere from a few hours to a full day. A typical agenda might include follow-up from the last meeting, a guest speaker, a visit to a member's company, or a detailed discussion of one company's most pressing issue. Pricier groups, such as TEC, also entitle you to a few hours of between-meeting consulting time with your facilitator or another expert. What format will suit you? How long can you afford to be away from the office? Do you want members of your group visiting your company? If there are guest speakers, will they address topics that interest you? Is the format flexible enough to deal with unforeseen crises?

Have Good Facilitators. A facilitator's job is to prevent entrepreneurs from monopolizing the conversation, leaning toward self-obsession, or dodging the tough questions. "Seventy-five percent of the success or failure of one of our meetings is due to the facilitator," says Jim Schell. "You have to be able to extract the valid points from the meeting, bring out the quiet people, and shut up the noisy ones."

What if you form your own group? Even then you'll probably need some type of moderator. The Phoenix Network, a nationwide group of 24 public-relations companies, annually elects a president who helps set agendas and facilitates its biannual meetings to "make sure we stay on task with the issues we've agreed to cover," says president David Neuger. And PrezNet, a peer group formed by company owners in Lincoln, Nebr., opted to hire an outside facilitator.

Encourage Trying Before Buying. Ask to sit in on a peer-group meeting before you join. To protect confidentiality, the group probably won't allow you to remain for the entire meeting, but you should be able to stay long enough to gauge the chemistry in the room. If, after you've joined, you feel strongly that you've misjudged your choice, don't be afraid to make a change. Many peer groups stay together for years, but even their biggest boosters concede that it's important to assess regularly the return on your investment of time, energy, and money. Peter Schrader, for instance, values his Business Networks group but feels it is time to take a break. "I now have a very clear vision of what I want to accomplish," he says, "and I desperately need the time to implement it."

Donna Fenn is a contributing editor at Inc.

Red Flags: Peer-Group Pitfalls

Considering joining a CEO discussion group? Watch out for the following warning signs:

1. High turnover among group members. Peer groups should place a premium on relationship building--and that's impossible when people are coming and going every month. Look for a group that accepts new members every six months or, better yet, once a year.

2. Advice that isn't based on actual experience. Entrepreneurs are notorious for being opinionated, but opinions don't necessarily translate into knowledge. "We have a rule in our YEO group that you're not supposed to give advice. You're just supposed to relate your own experience," says Keith Alper of Creative Producers Group, in St. Louis. "If people give advice and they're not knowledgeable, that can be very damaging."

3. Instant intimacy. Peer groups foster an atmosphere of immediate camaraderie that's easy to abuse. Be wary of peers who try to solicit your business or ask for business referrals before you've had the chance to build up trust.

4. Your own impatience. Can't wait to get your concern on the table? Not so fast. "It's very helpful to be a listener," notes Business Networks member Peter Schrader. "Everything that's said, you take back with you. Sometimes it makes you think, 'This is something I ought to clean up at my company, too."

Resources

  • TEC/the Executive Committee (800-274-2367) operates peer groups nationwide. Membership costs range from $5,400 annually (plus a $400 onetime enrollment fee) for companies with $750,000 to $3 million in sales to $8,700 annually (plus an $800 onetime fee ) for those with more than $3 million in sales.
  • Young Presidents' Organization (800-773-7976) is for CEOs not older than 50 with at least 50 full-time employees and, generally, $7 million in sales. YPO charges $2,000 in annual dues, plus various local chapter fees.
  • The Council of Growing Companies (800-929-3165) has 20 peer groups. The organization seeks high-growth companies with at least $3 million in sales.
  • Women Presidents' Organization (212-688-4114), run by Women Inc., operates 15 peer groups nationwide and charges $1,000 a year. Service businesses must have $1 million in sales; product-driven companies must have $2 million.
  • Smaller organizations within your own region frequently have annual fees ranging from $1,500 to $8,000. One notable exception: Jim Schell's Opportunity Knocks, in which members pay just $99 a year.
  • Do-it-yourself groups are another alternative. Plenty of entrepreneurs start their own peer groups and take turns facilitating meetings or pool resources to hire a professional facilitator. Homegrown peer groups can be just as useful as their pricier alternatives if they work hard to maintain structure and discipline.
  • " Taming the Beast," an article in the April 1996 issue of Inc., provides an in-depth case study of one CEO's experience as a member of a peer group.
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    • Donna Fenn

    Inc. contributing editor Donna Fenn is the author of Upstarts! How GenY Entrepreneurs are Rocking the World of Business and 8 Ways You Can Profit From Their Success (McGraw-Hill, 2009). Both this blog and the book examine the ways in which GenY is changing the entrepreneurial landscape with new approaches to starting, growing, and managing their companies. Learn more at http://www.upstartsrock.com/.


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