What Startup Founders Should Look For in a Board Member
This article originally appeared in Fast Company on June 12. Read the original here.
As a startup founder and investor, I’ve had the good fortune of assembling multiple boards and serving on more than a dozen startup boards over the last decade. I’ve seen some incredibly effective board members as well as those who were not a value add to the company. In fact, in my experience, most board members lack the skill set or don’t invest the time needed to be constructive board members.
As we continue to navigate uncertain economic times and founders are looking for more counsel than ever before, I wanted to share some advice on how to find the best board members.
1. FIND PEOPLE WHO WILL SHOW UP OUTSIDE OF THE BOARDROOM.
Being a good board member is more than simply showing up for meetings and casting a vote. It’s about being a useful ally to the company. Board members should be able to set aside a few hours every week to help the company reach its goals. This could mean making introductions to other investors or industry contacts or offering advice on specific challenges the company is facing.
Board members should make themselves available for regular check-ins (every other week or monthly) to ensure progress is being made toward the company’s objectives between meetings. Every week, I try to connect with leadership at portfolio companies just to see how I can help. Every board member you pick should be proactively connecting with you and looking for ways to add value.
2. DON’T PICK YES MEN.
A big mistake many founders make is surrounding themselves with “yes men.” They seek out close friends rather than people who are going to challenge them. While it’s important to work collaboratively with board members, the board has the ultimate responsibility to ensure the company is being run in the best interest of the shareholders — not just in the best interest of the founder.
Look for board members who can offer constructive feedback and help you become the most effective leader possible. This could mean providing mentorship, offering resources or connections, or simply being a sounding board for ideas and concerns. It’s also important to find board members who can help you develop a clear idea of the company’s objectives and focus on achieving those outcomes. Spend a lot of time defining those outcomes, and have conversations with your board about how ambitious the goals should be.
3. INTRODUCE BOARD MEMBERS TO THE ENTIRE TEAM.
Ideally, board members should know the whole management team. A good founder should facilitate communication and collaboration throughout the company in order to keep leadership accountable. They should understand how each member of the leadership team is contributing to the company’s success.
4. PICK PEOPLE WHO BRING A UNIQUE SET OF SKILLS.
Every board member should be different and bring something unique to the table. Some may have experience in founding companies, some may have government or investment experience, and others may have specialized knowledge in a particular industry or technology. It’s important to consider this diversity of experience and expertise when building a board and seeking out individuals who can bring complementary skills and perspectives. Additionally, look for board members who can help raise the profile of the company.
Emotional intelligence, communication skills, and conflict resolution are also important qualities for board members. Boards can sometimes be a place of tension and disagreement. Being able to navigate those situations with grace and empathy can be the difference between success and failure, so seek out people who can navigate conflict and build consensus.
Ultimately, building an effective board of directors requires an awareness of your own weaknesses and a commitment to the success of the company. By going beyond board meetings and truly investing in your relationship with every board member, you can build meaningful impact and help drive success for your shareholders, employees, and customers.
Dakin Sloss is the Founder and General Partner of Prime Movers Lab, the world’s leading partner of breakthrough scientific startups.
Prime Movers Lab invests in breakthrough scientific startups founded by Prime Movers, the inventors who transform billions of lives. We invest in seed-stage companies reinventing energy, transportation, infrastructure, manufacturing, human augmentation, and agriculture.
