Building an organisation? Don’t forget your Board!

Being the CEO of a growing organisation pulls you in countless directions, you’re focused on fundraising, recruiting, setting the vision, executing to achieve various short and long-term goals, attending events, speaking at conferences and, at times, just making sure the organisation doesn’t die. It’s hard work, but having a strong Board supporting you increases the chances of the organisation succeeding and makes your job as CEO more manageable.

The role of the CEO and the Board

The relationship between the CEO and Board varies by company, the approach that works for me and often works in founder-led high growth startups is one where the Board plays an advisory role and the CEO focuses on setting the path forward.

Outside of the legal requirements, the Board is there to help augment the CEO so that the CEO can in turn further develop the organisation. Just like the smartphones and technology we use every day, Board members help to extend your capabilities.

What should your Board members do?

Your Board decides who the CEO is and what that person should receive in compensation, they also have the ability to fire the CEO so, as the CEO, you need to be confident in the Board members you recruit.

In general, I see the Board as largely advisory in its capacity, here are some of the things our Board helps us with:

• Clarify big-picture strategy
• Foresee potential pitfalls
• Recruit new team members (they are not necessarily scouting for talent, but meeting with top candidates near the end of the recruitment process)
• Help team members overcome obstacles
• Introduce us to people that may otherwise be difficult to reach without a warm introduction
• Serve as a sounding board and provide different ways to think
• Fundraising*, mostly via introductions

*If the Board is helping you fundraise, make sure you know which Board members are ok with helping and which are not. That a Board member knows high net-worth individuals does not mean they are comfortable asking for money — do not put your Board members in uncomfortable situations.

How often should you meet your Board?

This depends on what works for you, we have Board meetings once per quarter. The meetings last two hours and are a discussion around key topics largely decided on in advance. You can skip long, boring overview presentations at your meetings by using Hampus Jakobsson’s pre-board preparation document.

Though the Board meets quarterly, I meet individually with Board members based on my and the organisations needs. Who I meet with, how long we meet for and what we discuss depends on what the organisation is going through at the time.

When I meet with the Chairman of our Board, an experienced operator and company leader, we often spend two to three hours digging into the details and nitty gritty of a broad range of topics. On the other hand, when I meet another Board member who’s a serial entrepreneur and investor, I find it most productive with a 20–30 minute discussion and focused on key issues. There is no right or wrong — find what works for you.

Who you want as Board members

You want to recruit Board members who have the skills, network, experience and expertise that you and your organisation lack. Often times, these Board members are people that you would not be able to hire as employees, either because they are too expensive, too busy or because they no longer work in an operational capacity.

If you are more than one founder in your organisation, it’s helpful to have the other founders on the Board as you likely have a stronger relationship with them, may have a more aligned vision than with external Board members, and Founders are likely to stick around the longest.

You, as the CEO, should be recruiting Board members based on your needs; keep in mind that you will likely need different Board members in different phases of your organisation’s growth. Founders sitting on the Board will likely keep their Board seats indefinitely; for non-founder Board members, make sure your expectations are aligned around the number of years you expect them to stay — being upfront about this will lead to a smoother transition later on.

I have focused on recruiting entrepreneurs and company builders because I believe that they are the people best equipped to help me set the strategy for an organisation built to support entrepreneurs. They also represent the various geographies we are active in, Malmö, Lund and Helsingborg.

When putting together a Board, avoid gathering a collection of Yes people who simply make you, the CEO, feel good with insincere flattery. You want people on your Board who can balance challenging your thoughts and strategy with support and encouragement. As long as you are aligned, being frustrated with your Board at times is good, productive and will lead to greater value creation.

Our Board is made up of intelligent, experienced, opinionated people with strong egos. Some of them are high risk takers, others are not. The diversity of our Board, on all levels, has made us stronger as an organisation.

Where to find Board members

Finding Board members can be done through your existing network, by reaching out to people cold, or even using a recruitment firm.

Our Board was recruited through network, where one or more Board members knew the person I was looking to recruit and made an introduction. It’s important to make sure that the CEO is the one meeting with potential Board members, exploring a potential personal fit and building a trusting relationship.

To build trust and explore the fit, you can ask potential Board members for help with something, for example an introduction to a contact of theirs. I had never met one of the Board members I recruited, so I invited that person to a small group dinner with a Venture Capital firm, there, I had the chance to speak with them briefly and watch them at work.

Managing the Board

Your Board members want to feel included. Send your Board brief updates every once in a while, share what you are struggling with, how they can help and share your wins, both big and small.

Have someone who can manage the Board and meetings. If you, the Founder, are not or don’t want to be the Chairman, find someone who can be. I felt ineffective managing the Board (including our meetings) so I recruited an experienced Chairman who is used to dealing with big egos and who brings a lot of structure to the Board. She Chairs our meetings, makes certain that decisions are made and that conversations don’t go too far off topic.

Caution to CEOs of non-profit organisations:

If you are running a non-profit organisation, beware of sponsors joining your Board as a part of their sponsorship agreement. Sponsors have a different agenda than you do, which is understandable, but as the CEO you should make sure that their agenda has as little impact on your organisation’s agenda and strategy as possible — not allowing them on your Board is a way of insulating your organisation from that misalignment.

Author: Jeremie Poirier, Co-founder and CEO of Skåne Startups.

Thanks to Hampus Jakobsson, Niclas Mollin and Charlotta Falvin for their thoughts and feedback.