1/ startups are tiny, undercapitalised, fragile organisms that keep outcompeting large and powerful incumbents.
2/ hence it always blows my mind when some VCs define company performance in terms of ability to hit the plan.
3/ in particular I cringe when VCs feel it necessary to chastise founders for missing numbers. Guess what: the founders are WAY MORE UPSET about missing their numbers that their VC ever will be!
4/ so the role of the board is ready to protect what makes startups special - namely the ability to make fast decisions in conditions of uncertainty - and to adapt fast when errors are made
5/ the ability to operate in failure / learn mode is precisely what gives startups their edge. The board needs to nurture that continuously.
6/ confident founders make confident decisions and are OK with making errors knowing the board has got their back and is focus on exceptional outcomes, not the ability to plan perfectly. That is now stretch goals are designed and achieved.
7/ so in a way every plan should be a stretch plan that can be missed or even shredded to respond to the realities in the field and the capabilities of the team. Embrace the chaos!
