Why and how to create a high performance board
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The document discusses how to build a high-performance board for a startup. It recommends 5 steps: 1) Create a startup board plan with specific goals and timelines for the first 90 days. 2) Recruit key board members and advisors. 3) Drive results within the first 90 days to establish momentum. 4) Use a "Talent + Strategy = Results" metric to measure board effectiveness. 5) Implement a boardroom performance system to formalize processes and hold the board accountable. The document also features panels of experts who discuss important aspects of board management for startups.
Why and how to create a high performance board
- 1. Why and How to Create a High- Performance Board Larry Cabaldon CEO Boardroom Performance Group larry@boardroomperformancegroup.com Leveraging Your Startup
- 2. Rate Your Board Building Skills Are you a Founder of a Startup Yes no Are you interested in building a board? Yes no Do you feel comfortable, as the CEO, working with your board? Yes no What do you believe is the most important skills for a CEO to Build a High- Performance Board? Understanding how boards work Recruiting the directors Monitoring Board Effectiveness Leveraging Talent Are you prepared to build your board? Yes No Would you be interested in more information on how CEOs can build more effective boards?
- 3. Today’s Program Larry Cabaldon, board consultant, shows you why and how to build a high-performance board for your startup. A panel of experts will share their views. Key issues Why do you need a High- Performance Board? How to Build a High-Performance Board? How to Manage a HP Board?
- 4. Larry Cabaldon • CEO/Founder the Boardroom Performance Group 2008 • Executive Vice President, DHR International, a Big 5 retained executive search firm. • Director Executive Search for PricewaterhouseCoopers LA Group • Director of Human Resources for a 400 employee one- bank holding company • Assessed and rehired over 1400 executives and 300 board members. Facilitated 14 board turnarounds. • Helped boards/executives, regulators, investors, private equity firms, acquirers, venture capitalists, private companies, start-ups and non-profits benchmark performance, select and maximize talent, improve results, and facilitate transactions that create value. • Recruited hundreds of consultants while a recruiter for PWC and participated in major consulting assignments with McKinsey & Co. consultants, Deloitte & Touché, outside counsel and others to achieve major objectives in 90 days.
- 6. Why a High-Performance Board • Leverage talent beyond your team 10X • Make better decisions • Access to capital • Access to resources, contacts, knowledge, talent, etc. • Organized guidance and accountability • Speed • Maximize ROI/Value
- 7. How to Create a High-Performance Board MEASURE WHAT MATTERS MOST TAKE MASSIVE ACTION 90-DAYS CREATE A BOARDROOM PERFORMANCE SYSTEM
- 8. Do You Know Your Metric of Metrics? Talent+Strategy=Results (TSR) CMO CFO INTERNL CEO 85% Talent 80% Strategy In Place Board Effectiveness 15% Growth Family Aligned 49% TSR TALENT + STRATEGY = RESULTS • Talent in place • Strategic Plan Complete • Board Functioning 90% • 15% growth • Family issues resolved Service providers 20% 25% 30% 60% 80% 50% Board 60% CHRO
- 9. Startup Board Plan TALENT + STRATEGIC OBJECTIVES = RESULTSPrepared by Boardroom Performance Group January 3, 2018 1st 90 Days Develop Founder’s Strategy/ action plan 5-10 hours Hire CEO and orient to culture / objectives of agreed upon CEO 100-day plan 5-15 hours Develop board matrix of needs, director accountability. Conduct initial interviews 5-20 hours Organize external and internal resources, i.e. executive requirements, outside advisors, etc. 5-20 hours Complete company PR and website showing CEO, Board, executive team and partners 5-20 hours Foundation in place for board, executive team and compelling story Maximum: 25-85 hours @$400/hour 2nd 90 Days Founder’s persona influences CEO, board team, message etc. CEO helps build board, internal / external resources and company story Three advisory board members in place 70% complete with internal external resources Present great PR program to attract investors and talent-+ Company ready to go to market with story, team, and investor pitch 3rd 90 Days Investor Roadshow ready to go Hire key executives Directors accountable for money/sales and product development Outside partner resources in place with key objectives Fully-functioning executive team and board Preliminary commitments for funding and sales TALENT Client Sample
- 10. 5 Steps To Create a High-Performance Board for Your Startup Success Create a Startup Board Plan Recruit Key People Drive 90-Day Results Know Your Talent + Strategy=Results Metric Use a Boardroom Performance System
- 11. The Panel • Mairtini Ni Dhomhnaill, Founder Countsy-board/financial issues for start ups, (clients Facebook, Instagram) • Carey Ransom, Founder OC4 Venture Studio-resources for startups, investor, active in OC ventures and community.
- 12. Mairtini Ni Dhomhnaill Founder of Countsy / Startup CFO We are your company’s back office function. We provide Accounting and HR as a service to venture backed startups.
- 14. Top 5 Most Important Things About Board Management Be Transparent Don’t keep secrets from your board. Be Proactive Communicate bad news before the board meeting (never at the meeting). Be Accurate Only present numbers that are vetted and aligned across the deck (bookings # from Sales same as bookings # in Finance). Be Brief Board communications should be high level, insightful and clear. Be Strategic Don’t come to your board with tactical problems. Save them for the hard stuff.
- 15. OC4 Venture Studio Carey Ransom President & Co-Founder Technology entrepreneur, executive, investor, and board member, Carey has started, grown and/or led nine B2B and consumer technology companies during startup and growth phases. – Collectively raised over $250M+ in Venture Capital – Past companies achieved $1B+ in enterprise value 1 5 My Core Values • Company building is a team sport • Embrace diversity • Stay humble • Be curious • Build community
- 16. Questions
- 17. In Summary: 5 Steps To Create a High-Performance Board for Startup Success Create a Startup Board Plan Recruit Key People Drive 90-Day Results Know Your Talent + Strategy=Results Metric Use a Boardroom Performance System