Article
What makes a board truly valuable?
Tuike Järvi
Reaktor Ecosystem
There’s a moment in every founder’s or CEO’s journey where the role of the board begins to shift from formality that helps us proceed to a force that guides us on the way to success.
It’s that shift we explored in a recent Board Work Breakfast session at Reaktor led by Taru Lindeman. Taru put it well: “80% of the board’s time should be spent looking forward.” I have even heard that the time spent looking forward should be 95% (HHJ classroom, presentation by Mika Sutinen) but we all get the point: looking forward is the thing.
Not just reporting. Not just reviewing. But dreaming, building and actively searching for ways to build future success.
In growth companies, especially founder-led ones, the board isn’t just a governance mechanism. Well in the beginning it is, but we should aim to change that very quickly to a strategic sparring partner. A mirror when you need reflection, and a push when you’re stuck. That happens when the board finds a way to look forward.
“80% of the board’s time should be spent looking forward.”
–Taru Lindeman
A few reflections from our session
Board work is a relationship, not a meeting. The real value often happens between the formal sessions. Inside conversations, candid questions, and moments of trust. This trust is the thing that supports the CEO to lead the team to the right direction, even when it is rough. The CEO should feel that the board has their back and that they are not alone.
The best boards aim for sharper thinking. Create room for those thoughts that are hard to grab when you are running a thousand miles an hour in the everyday challenges a growth company faces. Great board members also know how important it is to challenge assumptions without challenging authority and switch roles when needed.
A small bunch of people have a massive effect on the whole team. When the board’s operating cadence matches the pace of the business, strategic work can actually happen involving the whole company. Even though the board is a small bunch of people it should really understand and feel how much it affects the people who are building the business. Involving and communicating is the key for the board to help build a together made strong business. The board should understand that it’s there to help the team shine.
Ask a question. Alongside with the CEOs overview dropped in before the board meeting, ask the CEO to add in at least one question to be discussed in the meeting. This helps to shift the conversation to the future and hands the CEO valuable space to determine the topic that needs discussion.
Helping our companies build better boards.
At Reaktor Ecosystem, we regularly bring together board members across the ecosystem to learn, exchange experiences, and sharpen their knowledge. We see that when board members grow to be the best they can be, our companies grow as well. That’s what Board Work Breakfast is all about.
Oh, and if you feel you could be a valuable board member to one of our growth companies feel free to contact us.
About the Author
Tuike Järvi
Reaktor Ecosystem