A startup? Funded? How to manage your board of directors in a few easy steps

1. This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of Rick
Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
Managing your Board

2. Managing your Board of Directors
• For new CEOs “managing” a board is a new
experience
– Even though you report to them, it’s very different from
“having a boss”
– Friend or foe… Can be a source of unnecessary anxiety and
distraction
• Here are some guidelines that should help you
manage your relationship with your board.

3. 1) Stick to the basics
• The best way to manage your
board is to do a great job
managing your company.
• Company success is the most
important goal and the one that
the board cares about the most

4. 2) Build a great board
• When you raise money, the board
member who comes with the money
is as important as the money.
• Populate with people you believe
can really help you.
– Shared interests and philosophies
– Offset your weaknesses
• Diversity is good
– Areas of expertise (engineering,
operations, marketing, finance)
– Industry backgrounds
– Age, Gender, Race, …

5. 3) Communicate
• Formally, informally,
collectively, and individually,
communication is essential.
• Surprises are frequently fatal
so avoid them with
communication.
• When communication wanes,
the board sees a red flag

6. 4) Encourage independent director relationships
• Don’t be a filter between your staff
and your board.
– Open access to your staff will help
the board assess the health of the
company from different perspectives
– Access to staff can inform important
decisions.
– A demonstration of your confidence
• Staff members will understand their
own importance
• Both will learn from each other

7. 5) Get and keep your hands dirty
• If you tell your board you have
lost a deal, make sure you
have been there.
• If you have won a deal, make
sure your fingerprints are on
it.
• You need to be intricately
involved in your company

8. 6) Be resourceful
• Use the resources of your
directors’ ecosystems
– Recruiting
– Customer rolodex
– Public relations
– Professional relationships
(banking, attorneys, …)
• One of the great benefits that
board members bring

9. 7.) Make Board meetings matter
• Be in control
– Don’t let the directors find
the rocks; always be a step
ahead
• Have an agenda
• Use time efficiently
• Demonstrate progression
• Limit finesse, be direct
• Ask. They should help as
much as possible.

10. 8.) Never position the board versus the company
• If it’s you or the company
against the board, rest
assured; the board will
always win.
• Never put yourself or the
company in this position.

11. 9) Push Back
• Sometimes directors have
stupid ideas and give bad
advice
• Be open to different
perspectives, but have the guts
to push back, and do so
– At the meeting
– After the meeting
• Sometimes include the group
• Sometimes a private discussion
over coffee is best
• Choose your battles. Do this
when it makes sense

12. 10) Build a “safe” relationship with at least one
director
• Trusted alliances are crucial
• Ensure you have at least one
unwavering relationship with at
least one director with whom you
can confide during the most
difficult decisions

13. 11) Have a plan and measure against it
• Have a plan
• Outline goals
• Demonstrate how you’ll measure
performance, and do it.
• People have memories, so
execute, measure and
demonstrate performance on a
regular basis.

14. 12) When failure happens, declare it quickly
• Board members accept risk
and understand the inherent
downsides
• If a challenge appears
declare it quickly, design an
action plan and execute to
avoid failure.

15. 13) Be passionate
• Be passionate about the
technology, the team, and/
or the market problem to be
solved, etc.
• Show the board the fire in
your belly
• Board members will
appreciate your efforts and
enthusiasm and offer
suggestions to help

16. 14) Bottom line . . .
• Team you build and how you
choose to manage are the
most critical elements of
success.
• Manage your board through
careful selection of board
members
– Best board members are
there to help
– Best boards are aligned with
your goals to achieve success