I ran my fourth Board Boot Camp last Saturday, and one of the intriguing questions posed by a participant was how a board can build a better bond with their management company. As I said when I kicked off the discussion, this is a topic near and dear to my heart.
I think the best way to do this is by honest and open communication. I often have no idea that a misunderstanding or mistake on the part of someone in the company (definitely including me) has caused a ripple in our relationship with a board that can fester into one of two things: battle lines being drawn or the termination of our management agreement. Neither outcome is a good one as far as I'm concerned.
Perhaps it's the nature of working with a group rather than one-on-one, but there seems to be a reluctance to confront those misunderstandings or mistakes head-on. For us that's similar to an employment situation, being suddenly fired and having no idea why. It's far better to suffer a bit of discomfort while clearing the air over an issue than to allow it to smolder in the background.
We see our relationship with our boards as a partnership, and we are every bit as engaged in their success as they are. So give us a chance to prove it by allowing us to fix our mistakes (because no one is perfect), and by letting us clear up those misunderstandings.
So, I finish where I started: Can we talk?
