Thread by @kajhagros

Startup board practices: Having served 33 different boards, these are the best practices I have collected so far.
Enjoy with a glass of red wine.
#VentureCapital #startups @startupyhteiso @redstone

Do not just start. First pause to get to know each other and agree on the goals, spirit, culture, meeting, reporting and comms practices. Clashes arise from misaligned expectations.

Reporting takes place monthly on the background - with a standard format onepager - and will be commented as it arrives, not in meetings.

Keep the company, board, product, contract materials on a group drive tidy and organized - always ready for DD.

Board pre-read arrives a week before the meeting, not the night before. Read all materials and send first impressions ahead of the meeting. Do not go thru the material again in the meeting. Ask the presenter to give their summary and personal view. Be ready to challenge.

Board meeting starts with the agreed key theme(s) to make sure they get the time they need. Decision items next. Housekeeping, KPIs, FYI matters and other business in the end time allowing. Never start the meeting with the CEO's report.

Make sure all key topics (or functions) get full attention at least once per year ("annual clock") including People, Tech, Customers, Risks, Regulation - but also bring topical priority matters always to the next meeting regardless of the clock.

Invite random hangarounds from the staff to participate the meetings on a rotating basis. Also invite customers to meet with the board.

Collaborate actively on Slack/WhatsApp between meetings - throw ideas, observations, interesting companies, market news - keep this channel messy but the meetings more focused.

Alternate long meetings (4hrs - ample time to be creative) and short meetings (1.5hrs - a few current topics only) every other month. 24hrs offsite once a year.

Chair is not the decision maker - but the discussion facilitator. Making sure every voice gets heard. And controls time.

Always finish the meeting with "board only" i.e. without CEO (even if s/he is the founder or largest shareholder). The board must be a board. Let unsaid observations surface.

Have fun with the board. Jokes are welcome in the WhatsApp group. Have dinners. Build resilience and trust - you need it when the going gets tough.

Chair writes a Slack or blog post of the meeting to all staff after each meeting - it is good to hear the story not only from the CEO.

Be serious in collecting and debriefing board audit once a year. Improve each term.

Build the board based on required profiles/competences/diversity, complementing founder shortcomings and adding industry networks, not based on captable.

It is a good pace to replace one director per 1-2 years unless the situation calls for a thorough change. No one is supposed to stay there forever. Just agree one year at a time.

Encourage open dialogue between board and staff (e.g. via Slack). Transparency brings more benefits compared to any confusion from not having orthodox separation between owners, board, management and staff. Even with public companies (to a limit).

Important to give and take feedback in a way that builds team spirit and does not destroy it. Trust that all are doing their best for the company and all shareholders. Treat matters as matters and do not take worries from the board as personal criticism.

Wishing you all the best in creating a value adding board!