Building Your Board | Glenn Kelman

TL;DR

Redfin CEO Glenn Kelman shares his experiences and insights on building a strong and effective board, emphasizing the importance of choosing the right board members and fostering open communication.

Transcript

I'm Glenn and I'm here to talk about building the board I was surprised that James slavit the Greylock partner asked me to discuss this topic because I've actually had sort of a fraught relationship with our board and in fact I really didn't have much experience about what a board should be like just because my only experience had been watching mov... Read More

Key Insights

• 🏠 Redfin is a technology-powered real estate brokerage that has built a real estate website and invented map-based real estate search.
• 👥 Redfin's own real estate agents are more productive and charge lower fees compared to traditional agents, leading to higher customer satisfaction.
• 💼 Building a great board is important for the success of a company, and founders should carefully choose board members based on a personal connection rather than the reputation of the firm they represent.
• 🤝 Having board members with diverse experiences can bring valuable insights and perspectives to the table.
• 🔑 CEOs should view their board as an advisor and seek their input on important decisions, but remember that they are still the ultimate decision-maker.
• 📝 Writing detailed board meeting documents instead of relying on slides can encourage slower and more thoughtful thinking, leading to better decision-making.
• 👂 CEOs should actively listen to board members, value their input, and be willing to admit when they don't know the answer to a question. ⏰ CEOs should set clear expectations for board meetings, communicate what they want to achieve, and provide feedback on the effectiveness of the meeting.

Questions & Answers

Q: How can CEOs ensure they choose the right board members for their company?

CEOs should prioritize finding board members who are genuinely passionate about the company's mission and values. It is essential to evaluate potential board members' alignment with the company's goals before making a decision. Taking the time to get to know the individuals and ensuring there is a soulful connection will help in building a strong and effective board.

Q: How can CEOs effectively manage and communicate with their board members?

CEOs should foster open and candid communication with board members. They should provide detailed documents that outline the company's challenges and goals, allowing for a deeper understanding of the business. CEOs should also establish clear expectations and goals for board meetings and inform board members of what they hope to achieve from each meeting. Regular communication and feedback are crucial for a successful CEO-board relationship.

Q: Why is it important for CEOs to admit when they don't know the answer?

Admitting when you don't know the answer is crucial for maintaining trust and credibility with the board. CEOs should avoid pretending to have all the answers and instead, be honest and transparent about their knowledge gaps. This allows board members to provide valuable insights and solutions, fostering a collaborative and supportive relationship.

Q: How can CEOs ensure diversity within their board?

CEOs should prioritize diversity when recruiting board members. By seeking individuals with different backgrounds, experiences, and perspectives, CEOs can create a more well-rounded and effective board. Having a diverse board helps in bringing various viewpoints to the table and better reflecting the company's employee demographics and customer base. CEOs must make a conscious effort to foster diversity within the board to enhance decision-making and overall company success.

Summary & Key Takeaways

• Glenn Kelman discusses the importance of having a great board and how it has been instrumental in the success of Redfin.

• He shares his experiences with board recruitment and explains the importance of choosing board members who align with the company's mission and values.

• Kelman highlights the need for open and candid communication with board members and the value of presenting detailed documents to foster a deeper understanding of the company's challenges and goals.