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My First Board Meeting as CEO

board-meetingLast 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.

Overprepare

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.

Financials Matter

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.

 
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Posted by on January 29, 2014 in Uncategorized

 

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Fighting the Culture of Asking with a Culture of Giving

grLast week I hosted a dinner for a few folks in the tech community in FL that I thought will benefit from meeting each other. We had a wonderful time enjoying wine and discussing the technology market. When leaving, one of the attendees approached me to thank me for the invitation and she quickly expressed her surprise that I didn’t take advantage of the event to explore some new business opportunities around my new venture (KidoZen). My response to her was very simple: dinner was part my attempts to fight the “culture of asking”.

The “culture of asking” is one of the most detrimental aspects of modern business relationships. With some exceptions, of course, we constantly engage in business dynamics on which each party is constantly asking for different things for their benefit. While asking favors is part of everyday business, I find it incredibly constraining to nurture a relationship on the premises of always thinking how to benefit from it. Instead, we can really create long term relationships if we spend the time thinking how to benefit the other party without expecting anything in return. While we consider giving a fundamental element of personal relationships, its rarely part of modern business relationships.

A few years back, one of my longtime mentors advised me to devote sometime every week to think about how to help some of my business acquaintances without expecting immediate reciprocity. To this day, I have been trying to practice that regularly and couldn’t be happier with the experience.

The explanation is very simple: Giving is not only a pure way to help other people but also an incredibly effective way to build strong business relationships. Here are some of my favorite reasons while giving is more important than asking:

  • Giving makes you feel good: Spiritually, chemically, biologically…you name it…people always feel better when they give than when they ask for something.
  • Asking is short-term, giving is long-term: Giving helps people build relationships without a short–term objective in mind.
  • When you give, people feel obligated to reciprocate: As opportunistic as it sounds, when people receive a favor, a nice gesture they feel psychologically obliged to reciprocate it in the future.
  • Giving allows you to be genuine: Being genuine is one of the hardest things to achieve in a business relationship. However, there is no better setting to be completely genuine than what you are giving something without expecting anything in return.

These are some of my favorite reason why I think is important to foment a culture of giving. I would encourage to follow the advice it was once given to me and think hard about what to do every week to help some of your business relationships without expecting anything in return. However, always do it because is right and without a second agenda. You will find it incredibly rewarding.

 
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Posted by on July 17, 2013 in Uncategorized

 

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