• Source link: https://bothsidesofthetable.com/high-functioning-vs-low-functioning-startup-boards-ae3ebe69cd9e
• TL;DR: This article lays out many good points that set highly functioning boards apart from low functioning ones
• How helpful?: 4/5
• Topic Tags:
• Relevant questions addressed:
• What are some qualities of low/high functioning Boards of Directors?
• Summary bullet points
• High functioning boards
  • Tight-knit relationship between board members based on trust and respect
  • Divide responsibilities and work
  • Be able to collectively make tough decisions
  • Try to build in casual time for a meal/drink to form a personal connection that will lead to more effective board governance
    • “Every year I invited my largest investors to NYC to have an LPAC meeting (Limited Partner Advisory Committee — kind of like a board for a VC firm). We do lunch where everybody has a casual conversation followed by 6 hours of content and discussion. We then do a cocktail party so that everybody can have informal conversations (including LP to LP) and then we do a dinner in a private room at a restaurant. During the dinner I do half of it casually (chit chat with your neighbors) and half of it group “table topics” where we share ideas.”
• Low functioning boards
  • Managers treat board meetings as an update session rather than a chance to engage the board in strategic discussions
  • Low engagement from the board members
    • Spending time checking email/social media
    • Lots of members calling-in to the meeting
  • Misalignment of incentives
    • Different types of investors will have different goals for the company
  • Not enough time/time used inefficiently/key issues aren’t debated
  • Meetings not frequent enough
  • Board members with no skin in the game/personal responsibility for outcomes
  • Too many board members