5 Critical Missteps to Avoid in Supervisory Board Meetings

A lot of people in my network are leaders at software companies like mine, our customers, our partners, or Microsoft. So as I gear up for another board meeting, I thought I would share my reflections on the lessons I've learned over the years. While there's a plethora of advice on what to do in supervisory board meetings, it's equally crucial to understand what not to do. But for those unfamiliar, I'd like to start with how I see a supervisory board and its role.

A supervisory board, distinct from the executive board, plays a pivotal role in the governance structure of many organizations, including ours at To-Increase. This board primarily oversees and monitors the company's executive management's actions, decisions, and performance. Comprising experienced professionals from diverse backgrounds, the supervisory board provides strategic guidance, ensures accountability, and safeguards the interests of shareholders and stakeholders. In a dynamic and evolving business landscape, the supervisory board's role is crucial in ensuring that the company remains aligned with its core values, objectives, and long-term vision while adapting to new challenges and opportunities. In our case, at the group level, I have a board that is comprised of three formal board meeting members plus three others from my investment group who also attend.

How I composed my Supervisory Board

Board Members:

• Chairman - Cees van den Heijkant represents the cloud software development and business application sector. Deep expertise in software development and business application in the cloud. Notable roles include leadership positions in cloud software with organizations like Visma: Raet. Cees has been in several other board positions for cloud business applications companies.
• Pieter Schoehuijs represents our customers. Brings a wealth of experience from his tenure in Europe with IBM and Ernst & Young. Has held CIO roles in various companies, including a significant stint with AkzoNobel, a global chemical/CPG company. His expertise in IT and previous roles as a CIO for numerous companies provide invaluable insights into customer perspectives.

Private Equity (PE) Firm Representation:

• Maurits Boomsma Senior Partner & Member of the Executive Committee at Rivean Capital. Has been associated with investments in Novagraaf, Heiploeg, Plukon, Gamma Holding, and HG. Gained experience in the equities division for Goldman Sachs in London before joining Rivean Capital.
• Additional Members from the Investment Team at the PE Firm: Though not formally part of the supervisory board, I have three additional members from my investment team at the Private Equity firm whom we work with, who actively participate in the board meetings, bringing financial, portfolio enhancements, and investment perspectives to the table.

I really appreciate my relationship with this incredible team, and from my work with them and other boards, I have a few learnings I would like to share. Here are five missteps I've observed (and admittedly, sometimes made) that can derail even the most well-intentioned board meetings.

5 Critical Missteps

1. Withholding Information:

Transparency is the cornerstone of trust. Whether intentionally or inadvertently, withholding critical information can breed suspicion and hinder the board's ability to make informed decisions. Always ensure that board members have access to all the data they need. I have heard from so many CEOs that their board meetings are a choreographed theater. What a waste!

2. Suppressing Dissent:

While seeking harmony in board meetings is tempting, suppressing dissent can lead to groupthink. A board's strength lies in its diverse perspectives. Encourage open discussions and value those brave enough to voice unpopular opinions.

3. Fostering a Homogeneous Board:

Diversity in thought, experience, and background is essential. A homogeneous board can lead to a narrow viewpoint and missed opportunities. Actively seek to diversify your board to ensure a range of perspectives are considered.

4. Neglecting Accountability:

Without clear roles and responsibilities, board members can become passive participants. Ensure that every member understands their role and is held accountable for their contributions.

5. Skipping Performance Evaluations:

Just as companies regularly evaluate their performance, boards should too. Avoiding evaluations can lead to complacency. Embrace feedback as a tool for growth and continuous improvement.

The Human Element in Board Meetings

Even as we discuss these missteps, it's essential to remember the human element in board meetings. Respect, trust, and open communication are the foundation of any successful board. As CEOs and board members, our role is to avoid these pitfalls and actively foster an environment where every member feels valued and heard.

Fit for Everyone

While these insights stem from boardroom experiences, their essence is universal. Whether in a team meeting, brainstorming session, or even a casual workplace discussion, the principles of transparency, valuing diverse opinions, and holding oneself accountable are paramount. Regardless of their role, every employee contributes to the organization's fabric. We can foster a more inclusive, transparent, and productive work environment by avoiding these pitfalls in our daily interactions.

I invite everyone, from leaders to new hires, to share their experiences. Have you encountered these missteps in your professional journey? How did you navigate them? Let's learn from each other's experiences and elevate our collective practices.