The Importance of a Properly Balanced Team of Advisors

While a team of rivals may have been a good strategy for the cabinet of Abraham Lincoln, I can assure you it is not a good idea when putting together a board of directors for a startup. The value a competent board can bring to the table in offering guidance and direction is truly limitless and can have a dramatic impact on the organization. This impact, however, can be either dramatically positive or dramatically negative.

A board has many vital responsibilities to the company. Just a few of which include offering advice based on real-world experience on how to handle challenges all startups face. These include helping with critical decisions on cash flow, when and if to pursue additional levels of funding, reviewing strategy, challenging assumptions , and of course tracking the progress of agreed-upon goals.

Having the right balance of both experience and attitude will have a tremendous impact in the actual value the board delivers.  In choosing and selecting board members, there are a few key considerations that cannot be taken too lightly. This process is often one of walking a fine line between selecting members who can work together and in a supportive manner, but who are also willing and able to disagree vehemently when much is at stake. The key is in getting the right mix. A company certainly doesn’t want board members to fall into the trap of having a groupthink mentality where individual members are afraid to buck the status quo and disagree. It can be equally devastating to have members who refuse to accept and act upon decisions that have been made.

Board members will necessarily be composed of individuals who have excelled at their particular areas of expertise. They generally will have been very successful in similar situations and have much to bring to the table. One of the single most important questions you must be able to answer about any prospective board member is: Will the individual be committed to the overall success of the organization, or will they be more concerned with their personal control and/or input?

A true professional will have the ability to provide their input and expertise, stay focused on the issues at hand and work together to ultimately determine the best course of action.  Once decided, they MUST have the ability to fully support the decision agreed upon and move forward.  Many boards and,by default, companies lose an incredible amount of valuable time and resources with board members who constantly try to rehash and resurrect issues that have already been decided. This tends to cause much angst that has the effect of making board meetings a thing that members loathe. The pure frustration that comes with wasting valuable time is something your best members will simply refuse to do, and you could lose them and their expertise as a result.  Such delays will also prevent the company from being able to execute on critical mission steps in a timely manner.

The board must be a group of trusted advisors — who both monitor and guide the company through the minefields all startups face. They must at a minimum have professional respect for each other’s talents and abilities, and they must be willing to accept and act upon decisions once a consensus is reached. For this to be effective, it is imperative that the board members share the same end goal for the company and also agree on at least some general tenets as to how the company is to succeed.