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Key Takeaways Proactive and transparent communication between entrepreneurs and their board of directors is crucial for preempting surprises and fostering trust.
Leveraging the board as a strategic resource can provide valuable insights and networks to help address company challenges effectively.
Maintaining professionalism and efficiency in board meetings demonstrates respect for directors’ time and encourages their engagement.
The relationship between an entrepreneur and their board of directors (BOD) is central to a venture-funded company’s success. A board is not simply a formal reporting structure; it is a governing body created by law and investment agreements. Entrepreneurs (and company executives) should focus on forging a productive partnership that leverages the board’s expertise, network and oversight to benefit the business.
Maintaining this relationship requires focused, proactive effort. Companies that treat board members as genuine resources, while aligning all stakeholders’ focus on creating value, are best positioned to succeed. Here are the steps entrepreneurs should take to cultivate a strong board relationship, turning the board into a strategic advantage rather than a mere oversight body.
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Fostering alignment through communication and transparency
One of the most critical elements in building alignment with your board is proactive, transparent communication. Business owners should not wait for scheduled board meetings to surface major issues. Surprises can significantly erode confidence. Instead, hold ongoing conversations with key board members between meetings. Many founders schedule monthly touchpoints to keep them regularly updated.
For example, in a B2B enterprise sales model with long sales cycles, you might share progress on KPIs such as sales funnel health and revenue projections.
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