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For anyone who’s ever managed an investor-funded startup, you may find the following scenario all too familiar. You spend days or even weeks preparing endless PowerPoint slides of operating metrics, financial statements, and departmental updates. Then you lock yourself and other key team members in a conference room to assemble and review the deck. Finally, you get it sent out by the deadline (just barely), only to realize there is a major error on slide 5. Oops! Luckily for you, no-one actually reads the deck before the board meeting, so your error goes unnoticed and you quietly slip a replacement slide into the version to be handed out/presented at the meeting!
Meeting day finally arrives. You spend two hours painstakingly walking board members through the slides and related elevator analysis (sales are up, expenses down, headcount up, blah blah blah). Finally, in the last ten minutes, you have an impromptu discussion about sales strategy that generates some really useful nuggets you can actually put to use right away to grow your business. Hours of pain in exchange for just 10 minutes of useful discussion? Hardly seems like a productive use of time. There has to be a better way…!
Well thankfully, there is. As a CFO Advisor working for DecisionCFO, I can share a few proven techniques our team agrees are the most effective and productive for both you and your investors.
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Develop a standard board package and stick to it:
Everything goes much smoother with a script, which is what your board package should be. Invest the time to develop a list of standard reports and slides, arranged in a logical format, such that everyone knows what to expect at the meeting and knows exactly where in the deck to find information about the business.
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Less is more:
Resist the temptation to throw everything but the kitchen sink into your board deck. Focus only on the most important aspects of the business – product, financials, sales, operations and headcount. Your board members have limited time and attention – give them only what they need to know to prepare for a discussion about moving your business forward.
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Create a list of objectives for each meeting:
Board meetings are more than just a report card session with your investors – they are an opportunity to gather with smart, experienced advisors who are invested in your success. Maximize your time with this group and make sure every minute is spent gathering useful feedback, addressing major issues and brainstorming new ideas.
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Assign homework:
Everyone should be working at the board meetings – not just the management team. Think carefully about how your board members can help, and assign specific tasks or requests, such as introductions to potential customers and partners, assistance with recruiting, or collaborations with their other portfolio companies. Trust that your board members are eager to help, but it is your responsibility to let them know exactly what you need from them.
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Attitude begins with you:
Board meetings don’t have to suck – it is in your power to make it so. Take the time to establish better relationships with each board member. Call them every couple weeks or so to check in and update them about the business. This will foster a stronger relationship and will translate into much friendlier board meetings that you may actually even enjoy – what a concept!
With these simple changes, you’ll be off to pain-free board meeting nirvana! For more helpful advice and perspective on managing your startup, visit us at www.decisioncfo.com.
How do you keep your Board Meetings productive and interesting? Please share your ideas in our comment section.
Written by Peter Kihara
CFO Advisor for DecisionCFO, LLC.
During his 20 year career, Peter has provided financial and entrepreneurial leadership to numerous companies seeking growth through acquisitions, raising capital, improving operations and/or turning around failing businesses. At DecisionCFO he has served as CFO Advisor to such thriving technology companies as Thuzio and Mediapredict.
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