Last week I ran my first board meeting as CEO of a venture backed company. Among other things, that’s the reason why I haven’t been actively blogging in this space as the preparations for the board meeting took a considerable part of my time.
Even though I sit at the board of a few other companies and have a good experience participating in board meetings, I didn’t anticipate the intensity that takes running a board meeting as a startup CEO. In that sense, I think the experience broaden my perspective of the value that a board can play in an early stage startup and, hopefully, that will make me a better board member. In any case, I thought I’d summarize some of the lessons I learned while preparing for this board meeting.
I couldn’t stress this enough. As a CEO, it’s your duty to your board to be super-prepared for the board meeting. In my case, I found myself working the entire weekend putting together the board package and obsessing about every little detail. At the end, I ended putting together more than 200 pages of documentation but I think our board members got a very in-depth view of the KidoZen strategy and they were able o be very productive during the board meeting.
Deliver the Board Package a Few Days in Advance
If you have the opportunity, deliver the board package a few days in advance so that your board members have the time to review it. Even though this is a pain, understand that your board members don’t have your same level of understanding of your strategies and having the time to review of board package in advance will make them more productive during the meeting.
In my case, I didn’t have the opportunity to deliver the package with so many days in advance but, instead, we printed the entire 200 pages of documentations and delivered to each board member so it will make it easily for them to read when they were offline.
Focus on Making the Board Meeting Productive
Most board meeting are a complete waste of time. If you are not well prepared, you can find yourself getting stuck in unproductive discussions that won’t add any value to your company. Additionally, keep in mind that some of your board members can be really disruptive during the meeting. To mitigate that, you need to have a super detailed agenda and be extremely clear about your goals for the board meeting and relentlessly trying to control the agenda even if it means being strong with your board members.
Presenting an accurate picture of the state of the company is a super important part of the board package. In that sense, presenting detailed information about the financials and other key performance indicators is super important to help your board members get a good understanding of the state of the company and identify the areas on which they can be helpful.
Be Honest, Disclose your Challenges and Failures
No CEO likes talking about their failures and current challenges. However, it’s important to realize that your board members are co-owners of your company and it’s their job to help you and advice with those challenges. In my case, I have a included a “Challenges Slide” in every single section of the presentation such as business development or sales to highlight the areas on which we could use a lot of help.
Have Clear Goals and Resolutions that Need to Be Approved
Resolutions are an important part of the board meeting and one on which you can end up spending way too much time. I believe it’s a good practice to highlight the resolution that will require voting in advance so that your board members can be prepared to have an intelligent discussion about it.
Have your Legal Counsel Present During the Meeting
Not a standard practice, but I find it super helpful to have your legal counsel present in the meeting to draft the minutes and assist with any legal matters. Most top-tier firms will offer you a good rate for those services event more if thy are really invested in your company. In our case, our legal counsel assigned one of his associates to participate full time in the meeting and they were extremely helpful in several discussions.
I hope this helps, I will have a follow up post about the board package soon.