Posted On May 25th, 2017 by Crowded Ocean
One of the most delicate—and important—parts of a startup CEO’s job is how to manage your Board. If this is your first startup, it may feel like they’re managing you, and you might feel like that’s the way it should be. But repeat startup CEOs will tell you that, if you manage your Board properly, you’ll have a valuable ally, a strategic resource—and you’ll view BOD meetings with something other than the fear that grips first-timers.
Find out (and then set) expectations early
In researching our book, The Ultimate Startup Guide, we talked to over 25 VCs and a like number of founders. One of the key components that emerged from these interviews was that most VCs will tell you that their CEOs over-prepare for BOD meetings. And if VCs could see what we see—companies virtually shutting down (at least the management team) for a week or two prior to a BOD meeting—they’d be even firmer in their convictions. But first-time CEOs want to have all bases covered, so they try to anticipate, then prepare for, each question or objection. Either offline or in the first real BOD meeting, CEOs should raise the topic—find out what the VCs want and how they want it presented. Many of them will tell you they want topics raised and discussions—rather than complete presentations—on each. If so, hold them to it and run more relaxed, collegial sessions.
Respond, don’t react
The best advice we can give is this: when it comes to dealing with your Board, be responsive, not reactive. Your Board members are experts in the business of running a startup and cracking a market, but they don’t know your market as well as you do (in most cases) and they’re not as good in marketing as they think they are (in almost all cases).
But like all of us, VCs and Board members want to know that they’re being listened to and respected. To that end, we recommend that in each BOD meeting there is someone tasked with taking notes and recording every point raised by a Board meeting. Then, once the meeting has concluded, get the internal team back together and consider each of the major points and what your response is. Then craft a concise email to the Board summarizing your decision (or pending action) on each point. It shouldn’t be the day after the BOD meeting—it will look like you’re intimidated and that you haven’t given these topics enough thought—but it should be within the week.
Will this turn your Board from a bunch of intrusive know-it-alls into purring, pliable kittens? Hardly, but you’ll earn some respect, you’ll get them off your back (to an extent) and you’ll get more time to run your company, rather than over-preparing for the next BOD meeting.