Who Should Be on Your Board?
A board, what’s a board? Kidding (sort of). For most Founders the concept of working with a board is new. In future posts, I will talk about running a board meeting, how to get the most out of your board, and navigating conflicts with your board. There is also the question of when? There are legal requirements, investor expectations, and times when it just makes sense. And the why? The why informs the who – so, yes, maybe I am starting backwards.
Who should I put on my board? Am I looking for mentors, advisors, investors, experts, people who have been where I am now?
Here are 5 things you want to look for when choosing a board member. Remember, your board should change over time as the business changes. Boards are not static.
1. Domain Expertise; Experience
To succeed as a Founder, you need to fill your skills gaps. Nobody is great at everything. As you scale you do that by hiring function specific managers. Board members are also a great way to fill a gap early on or for specific challenges down the road. If you aren’t great at marketing and it’s the key driver of growth, maybe you have a board member that has worked in marketing for 20 years. Or, maybe you need someone who can navigate HR issues as your team multiplies.
You want people with business experience. Maybe someone with startup experience, particularly if you are in the early-stage or scaling. Some who gets your realities.
2. Networks
One of the most important contributions a board member can make is access to his or her network. We all know that strong networks go hand-in-hand with success in our personal and professional lives. Whether that is access to investors, strategic partners, key customer, service providers, or talent, board members should open doors. This is important for all Founders but women in particular, tend to have less access to traditional networks, so a strong board that is out advocating and making introductions is key.
3. Honest – Real Honest!
You need someone who will tell it to you straight. Will give you honest feedback. Will challenge you and your ideas. Someone who isn’t afraid to push back a little to make sure you have really thought it through from all angles. Is ok telling you that you are wrong. So many people around you get caught up in the energy and excitement and will follow you anywhere (including off a cliff). You want someone who makes you better (sounds like a Hallmark card but true!).
4. A Shared Passion
You definitely want someone who shares your vision and believes in it. Board members will be more engaged if they share your passion. They are doing this for free or very little equity. They are doing this because they believe in the business and you. Use that. You want someone who is passionate about something other than just making money.
5. Surprise – What You Don’t Want (or want to think twice about!)
Celebrity boards. People you put in a pitch deck for social validation but who have no intention of being active. They don’t add value and often you are giving them equity. As we have learned, an A-list board is not a sign that all is ok. Or, credible validation. See Theranos or Uber. If you are looking for venture funding, investors are not investing in boards. They are investing in you so find people who make you better, smarter, and stronger.
Be thoughtful. Exercise good judgement. Be patient, do your diligence, and get to know them as a person not just their resume.
You need someone who will tell it to you straight. Will give you honest feedback. Will challenge you and your ideas. Someone who isn’t afraid to push back a little to make sure you have really thought it through from all angles. Is ok telling you that you are wrong. So many people around you get caught up in the energy and excitement and will follow you anywhere (including off a cliff). You want someone who makes you better (sounds like a Hallmark card but true!).
A Shared Passion
You definitely want someone who shares your vision and believes in it. Board members will be more engaged if they share your passion. They are doing this for free or very little equity. They are doing this because they believe in the business and you. Use that. You want someone who is passionate about something other than just making money.
Surprise – What You Don’t Want (or want to think twice about!)
Celebrity boards. People you put in a pitch deck for social validation but who have no intention of being active. They don’t add value and often you are giving them equity. As we have learned, an A-list board is not a sign that all is ok. Or, credible validation. See Theranos or Uber. If you are looking for venture funding, investors are not investing in boards. They are investing in you so find people who make you better, smarter, and stronger.Be thoughtful. Exercise good judgement. Be patient, do your diligence, and get to know them as a person not just their resume.
