Hiring Board Members for Start-ups - a Guide

A curious thing about start-up board building is that it often seems to circumvent the principles of recruitment best practice. Not a great idea.
 
Board recruitment is a specialised discipline, but it is a recruitment process none-the-less and should have all the right checks and balances, particularly given that recruiting the right board for your start-up is so critical to success.
 
Early-stage founders may feel that they need to approach potential board members with a level of deference that can rob them of objectivity. In our experience potential board appointees are, in fact, flattered to be approached, realistic about their suitability and magnanimous when not appointed for rational reasons. After all, they are generally world-wise, successful professionals with little to prove.

​They are rarely motivated by financial gain (a red flag if they are), have a genuine desire to help start-ups by sharing their knowledge and will only take on projects that they find inspiring.
 
With that in mind here are a few pointers on to how to approach board recruitment so that you get it right first time and treat candidates with the respect that they deserve.
 
DO’s

• Start with your needs in mind, not a person – it is easy to identify an individual that you respect and build a job description around them. Better to map out your needs first, then measure candidates against your criteria to avoid ending up with skill gaps on your board.

• Search for candidates based on your criteria – use personal recommendations, internet searches and even advertising if you wish, but make sure you consider candidates from varied backgrounds and sources. A strong shortlist allows you to benchmark and strengthens your negotiating position.
• Make contact directly, with a clear proposition – make sure you share as much as you can. Board candidates are always busy and will not be responsive to an obtuse approach, nor will it reflect well on you. Be upfront about the fact that it is a competitive process. They will expect you to be looking for the right person.
• Put them through a formal interview process – base your questions on your selection criteria and ask every candidate the same questions so that you can benchmark their responses.
• Seek opinions from other board members, advisors, and mentors – you will need the counsel of more experienced allies, and other board members will have a strong interest in who they are to collaborate with on your board.
• Reference and credential check – don’t miss this part just because your preferred candidate is senior. If they object that is a concern. Bear in mind that your board has legal, governance and fiduciary responsibilities for your company and you must make sure that its members are unimpeachable.

 
DON’TS

• Purely rely on your own network – this is a like deciding to only marry someone from your own village. Your network may well have someone perfect, but it makes sense to widen your search to make sure that you find the best person for the role, and they may well not be known to you or your immediate network.
• Appoint anyone who has not been through your credentialing process – it’s easy to let someone bypass this because they were referred from a ‘reliable’ source, but this does not exonerate you from the responsibility of ensuring that your board is beyond reproach. You would not be the first founder to find out too late that someone on your board has a dubious past.
• Let a third party impose a board member – it’s inevitable that at some point an interested party will expect a board position, whether an investor or alliance partner. It may be hard to refuse, but you have a right to do your own due diligence on whomever they recommend. You want to feel a high level of comfort that every board member has your company’s (and your) best interests at heart.
• Appoint someone who is not approved by existing board members – not to say that you can’t have some 'creative tension’ on your board from time to time but nothing renders a board dysfunctional quicker than antipathy between board members.

If you wish to enquire about how Luka Bio can assist you with the search and appointment of a board member or chairperson contact Dr. John Bethell here.