Building a Great Startup Board Pt. 2


This post is by Reid Hoffman from Reid Hoffman


Last week, we explored the topic of startup boards of directors. We covered what a board of directors does, why it’s so important, and how the role of the board changes as the company grows. The primary goal of this conversation was to explain how and why a great startup board can be a powerful tool to help the CEO make the company successful. If you haven’t yet read Part 1 of this essay, you can do so here.

This week, we return to the topic to cover how to choose your board members, why startup boards will be more diverse in the future, and discuss some of the great board members I’ve worked with in my career.

This essay is based on Part 2 of a two-part episode of the Greymatter Podcast. You can listen to the podcast here, or search for Greymatter Podcast in your podcatcher.

HOW SHOULD I SELECT MY BOARD MEMBERS?

In many cases, the CEO is the only member of management who serves on the board. But every so often another founder also sits on the board. If that’s the case, it’s essential that that founder and the CEO have a very tight relationship and coordinate closely to avoid allowing members of the organization to use that alternate channel to the board to get around the CEO’s decisions.

Selecting your investor board members should be a careful and thoughtful process, even if that means it requires more work. One common mistake is for (Read more...)