PACT Academy Building, Leveraging and Communicating with your Board - - PowerPoint PPT Presentation

George Marks, Co-Founder, Robin Hood Ventures Tom Olenzak, Venture Partner, Safeguard Scientifics John M. Ryan, President, Devon Hill Ventures Rob Weber, Managing Director, Antiphony

PACT Academy

December 8, 2010

Building, Leveraging and Communicating with your Board and Advisors

Congratulations!

December 8, 2010 PACT Academy - Boards

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• 1. $$ raised
• 2. Expectations running high
• 3. New Board in place

And, with apologies to Michele Pfeifer and Alec Baldwin…

“Married to the Board” The Five “Stages”

• 1. Romance or Honeymoon
• 2. Reality
• 3. Accommodation
• 4. Transformation or Success
• 5. Exit

December 8, 2010

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PACT Academy - Boards

Romance or Honeymoon Stage

• Understand your new situation as a CEO with a new Board

– responsibilities – investor protections – authorities – you and board, limits, etc.

• Think fully about a governance process

– plans, budgets, goals, metrics, reporting, financial systems, responsibilities, etc.

• Think about working with the board

– frequency of meetings, regular agenda items, special agenda items, advance materials, other contacts

December 8, 2010

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PACT Academy - Boards

John Ryan

Reality Stage

• Conduct of the meetings

– preparation, advance materials, presentation materials, participation, discussion, listening

• Staff participation

– CFO, COO, others

• Executive sessions

– pros and cons

• Other Director Contacts

– Key director – Friend-director

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PACT Academy - Boards

John Ryan

Accommodation Stage

• Relations with the board and directors

– No surprises!!! Transparency, openness, visibility, predictability – Performance measures, reporting frequency – Dashboard – key financial and operating measures, comparison to budget, re-projections of quarter and full year – Flash Report

• Special analyses
• Staff assessments
• Regular consideration of risks and steps to reduce them

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PACT Academy - Boards

John Ryan

Transformation or Success Stage

• Managing the Board during times of success

– Their value is to help keep your eye on the ball – Focus on key risks

• Managing the Board during times of challenges

– Be open and honest – Tap into their experience and contacts

• Preparing for a successful exit

– You have board members who have done it before – An exit is a process from Day One, not a single event

• Preparing for a wind down

– Fiduciary duty is paramount

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PACT Academy - Boards

Tom Olenzak

Lessons Learned

• Constant, Clear, and Complete Communication is Key

– No surprises

• Set expectations early

– Participation – Compensation

• Make board meetings productive

– Minimize “reporting” and maximize discussion – Board Members create the most value outside the boardroom

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PACT Academy - Boards

Tom Olenzak

Exit Strategy

• When – and how - to change the Board
• When – and how - to change Management

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PACT Academy - Boards

George Marks