A VC in Vacationland

I was reminded of this phrase recently when I listened to the founders at one of my portfolio companies 'violently agree' (somewhat an exaggeration) on subjects during a board meeting.

It turns out that they were basically correct, but the idea that some harmonious relationship needs to exist between founders is BS. Some of my most successful companies were grounded in constructive conflict among the founders, the Board and the employees. So much can go wrong in an early stage company that continuous agreements can run the company down the wrong path…quickly.

I'd rather see a good and fair fight about direction and strategy within a company as opposed to 'steady as she goes'. Even if all looks well, viewing other alternatives is critical, even in established companies.

In some of my past late-stage deals, senior executives were insulted that the Board questioned the long-term strategy. It was like calling a baby ugly. The only ugly thing was the ego of the executives who acted like the Board knew nothing and that their ideas were supreme.

So here's a few pointers to keep the paranoia high and agreements well founded:

1. Question ALL decisions–don't just let an erudite  presentation lull you into thinking it's the 'right answer'. Ask a lot of questions to see the depth of the analysis. Do'tn let others bully or stare you into silence.
2. Get all people involved–often, quiet or introverted people don't express opinions, even though they disagree. Make sure that you poll the room on important issues to get all ideas on the table.
3. Revisit key issues–Often, it's 'one and done' on many decisions, when they should be considered more often. In oe of my companies, we had to bring up a topic in three consecutive monthly meetings to get the founders and executives to pay attention.