What do you do if startup founders and board members are at odds?

Root cause first — I have learnt from my years working with Six Sigma to systematically analyze conflicts before attempting to resolve them. This method, which has been pivotal in many companies, involves identifying the underlying causes of disagreements. Might sound too bureaucratic but developing Fishbone diagram and forcing yourself in answering the Five Whys does help. This can not only clarify the issue but might reveal solutions everyone overlooked in the heat of the moment.

There is a natural misalignment of interest in most scale-up boards. Typically it's just a bunch of overly energetic and slightly naive founders talking with sharky representatives of the investors. Founders are much more emotionally involved and investors are just there to maximize return on the investment they made on behalf of their fund LPs. That's why it's always good to have independent board members on board, with no or very limited exposure to the financial success of the company. The biggest source of conflict is when founders get close to burn out or when investors want more experienced management. In the end it's simple: the board (majority) decides in the way described in the shareholders agreement.

Os fundadores podem ser mais orientados para a inova??o e a vis?o da empresa, enquanto os conselheiros podem ter um foco mais forte no crescimento e na rentabilidade. Compreender essas diferen?as é crucial para encontrar um equilíbrio que atenda aos interesses de ambas as partes e conduza a empresa ao sucesso.

My secret to mediation — Keep conversations honest and direct. Set up a dedicated space where stakeholders can talk openly, without fear of judgement. Make sure everyone's heard. In a conflicting situation no one has the ultimate truth, every one should have their share of airtime. And should this not suffice and things get tougher? Bring in an impartial pro to steer the discussion. This rather simple two-step setup can turn your biggest disagreements into powerful dialogues that might push your biz forward.

Quando surgem diferen?as de opini?o entre fundadores e conselho, é vital ter paciência e estar aberto a compromissos. Apreciar a diversidade de pontos de vista pode gerar ideias inovadoras. Preservar um ambiente de respeito e profissionalismo é crucial para gerenciar conflitos de maneira eficaz.

Durante conflitos, estabelecer uma vis?o compartilhada para a startup pode ser uma estratégia eficaz para a resolu??o. Isso requer um consenso sobre a miss?o da empresa e suas metas a longo prazo. Quando há um acordo sobre a defini??o de sucesso, é mais fácil chegar a um consenso sobre as estratégias para alcan?á-lo. Essa vis?o conjunta atua como um farol, orientando as decis?es e diminuindo potenciais conflitos.

Some investors might try to seduce founders pre-investment with things like secondary payments off the table, or force you to buy out or let go other co-founders. This way they are feeding conflicts and founders should be cautious when it get's more about the money than about the mission. A true entrepreneur's goal is not to get rich, but to make others rich. If you can give, you will receive much more. But beware of the sharks.

A implementa??o de práticas de tomada de decis?o democráticas e a promo??o de uma cultura de respeito e compreens?o mútuos podem ser estratégias eficazes para prevenir futuros desacordos. Nenhum lado deve ser mais importante que o outro. Além do CNPJ, há CPFs, pessoas reais, de origens diferentes.

Uma vez que um plano de a??o é acordado, o monitoramento contínuo do progresso é essencial. Isso pode envolver a implementa??o de métricas de desempenho, feedback regular e revis?es periódicas.

It all starts with who you work with in your board! Get board members that have been in your shoes, that have been true entrepreneurs themselves. Not dull bankers spending LPs money or just rich kids spending daddy's fortune. People that can mentor you, think like you, feel your pains. That have been in the trenches and that can help you to overcome. You have much more power to set-up your board than you think. The paper might say that the investor can decide or nominate, but in the end it's also your signature on the bottom. Do your research. Talk to entrepreneurs, do serious reference checking! You won't regret.

Reinforce each role — A lesson I've learned from firsthand experience: conflicts often stem from stepping over boundaries. Each person has a role and been given a charter. Founders and board members should respect this. Founders know the product inside out, while board members might bring unique financial and market expertise. Recognizing and respecting the decision-making power each has been entrusted with is key.

Identify Mutual Goals: Focus on the shared vision for the company. Open Dialogue: Facilitate a meeting to discuss issues candidly. Understand Each Side: Encourage empathy and understanding among parties. Clarify Roles: Make sure everyone is clear on their responsibilities and authority. Mediation: Consider involving a third-party mediator if necessary. Data-Driven Decisions: Rely on facts and figures to guide discussions. Set Conflict Resolution Processes: Establish protocols for future disagreements. Stay Company-Focused: Align all actions with the startup's best interests.