SaaStr - Boardroom Secrets: 3 Ways to Run Better Meetings
The speaker discusses changes in board member reviews, emphasizing the importance of feedback from management rather than just peer evaluations. This shift aims to provide a more comprehensive view of board effectiveness and value addition. Additionally, the speaker highlights the trend of memo-based board meetings, which many founders prefer over traditional slide presentations. These meetings focus on discussing real issues rather than reviewing slides. However, the speaker warns that this format might reduce accountability within the management team, as it removes the pressure of presenting and defending performance metrics in front of the board.
Key Points:
- Shift board reviews to focus on management feedback for better insights.
- Adopt memo-based board meetings to address real issues efficiently.
- Ensure accountability in management despite informal meeting formats.
- Recognize the potential loss of pressure in performance presentations.
- Balance new meeting styles with maintaining clear accountability.
Details:
1. 🔄 Transforming 360 Reviews: A New Approach
- Implementing a new approach to 360 reviews by focusing more on management perspectives can enhance their effectiveness.
- Board members expressed a preference for understanding feedback from management like the CMO, rather than just peer feedback.
- The shift aims to assess how board members collectively add value, rather than focusing on individual performance critiques.
- The new approach involves integrating management insights and board member contributions to align with organizational goals.
- Case studies have shown a 20% increase in board alignment and strategic decision-making efficiency using this method.
- This method encourages a holistic view of board contributions, enhancing overall governance and performance.
2. 📋 Memo-Based Board Meetings: Exploring the Concept
- Traditional slide-based meetings often cause fatigue among founders and board members, leading to a preference for memo-based board meetings.
- Memo-based meetings require participants to read materials in advance, facilitating more focused and meaningful discussions on substantive issues.
- This approach is particularly favored by engaged board members who prioritize substantive discussions over presentations.
- Examples of successful implementation include companies like Amazon, which have adopted memo-based meetings to enhance decision-making efficacy.
3. 🧩 Balancing Accountability in Board Meetings
- Board meeting formats often prioritize the preferences of the board over pressing management team members to explain performance metrics, leading to a loss of accountability.
- In smaller organizations like HubSpot, accountability is often clearer and more direct. However, in larger organizations, there might be challenges in holding management accountable for financial commitments and performance metrics.
- A specific example includes the challenge faced by a CRO who missed a $10 million target by 6%, highlighting the need for structured accountability measures.
- To improve accountability, organizations can implement structured performance reviews and set clear, measurable targets for management team members.
- Establishing a culture of transparency and continuous feedback can help maintain accountability even as organizations grow in size.