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Ronde Tafel
7 Februari 2019
Sprekers : Wout Van Impe en Lieven De Smedt
EIGENSCHAPPEN VAN EEN GOEDE
ONAFHANKELIJKE BESTUURDER
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Welkom op uw Ronde Tafel
MET DANK AAN ONZE PARTNERS
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BCTE in een paar woorden
BCTE is het Belgische netwerk van KMO bestuurders.
Het doel van BCTE is de efficiëntie van de raden van bestuur van KMO's te verbeteren via dit netwerk en zijn ervaring.
Het netwerk van de BCTE leden biedt meerdere
participatieve evenementen
voor uitwisseling tussen de leden (BCTE-evenementen)
De KMO’s verbeteren hun
prestaties dankzij een betere
RvB verkregen met de hulp van
ervaren beheerders (de diensten
van BCTE)
Executive Search | Specialist Recruitment | Talent Service | Worldwide
Succesful Board members are no longer
defined by what they know, but how they work.
Wout Van Impe
Lieven De Smedt
TOP DOWN werkt niet (meer)
____ 7
Succesvolle Board
Many professional women (and men) do not consider board positions as a viable adjunct to a successful career. Board positions are often regarded as being for retiring c-suite executives, business leaders and partners in law and accounting
firms or voluntary positions on charities for well connected people with time on their hands and aged over 50.
In the modern world of improving corporate governance this perception is being challenged. Board positions are increasingly being taken by working
executives, younger people and women.
The Guardian AUG 2013
https://www.theguardian.com/women-in-leadership/2013/aug/21/how-to-be-on-a-board-practical-tips
Succesvolle Board
Samenstelling
Governance inzichten
Om de juiste reden zetelen (of niet: ego, familiale redenen, teveel tijd)
Sterke voorzitter (governance, cultuur, enz.)
Persoonlijkheden en maturiteit, emotionele stabiliteit
Diversiteit
Expertise aanwezig
Hoe kom het dan dat vele RvB’s een gemiddeld niveau niet overstijgen?
Shareholders
Management Board
- The scientific Founder (2011) drives the story and business potential
- The VC investor (closed fund) does a due diligence-light (2013) the Founder signs a Warranty letter
- Every 2 years there is a new CEO ... with a better understanding of running a company, the technology or the market potential
- A Family Office joins as investor (2015)
- €1-1.5M annual burn rate – 15 FTE – 100K Capex – local grants to support the Business Plan Board Composition
1. Independent Board member & Chairman 2. The VC investor
3. The Family Office
4. Invited and Observer - Founder Board Performance
• Balanced and mutual trust
• Cash is King
• BusDev supportive 2011 - 2017
ALG X SL (Esp)
innotune
Succesvolle Board
Het gaat erom HOE je werkt
Expertise en achtergrond is belangrijk maar vaak overschat
Succes wordt bepaald wat je BUITEN de RvB doet Interesse in de business en omgeving is cruciaal
Business en value chain volop begrijpen
Constructief challengen van executives en CEO’s
Succes is tijdrovend
Het bijwonen van de RvB is enkel het sluitstuk.
Het gaat niet over u!
Manage uw ego en testosteron. Je neemt deel in het belang van het bedrijf en de CEO, niet
voor uzelf.
Shareholders
Management Board
- €4M grant claimed back when €2.4M Cash in hand Pre-concourse situation (ie ‘in concordaat’) - Drastic cost cutting program; no more Science, only BusDev
- Major License with Top-5 Animal Health Company (‘AHC’) in the pipeline – due for closing in Q2, but - AHC decides to go public in Q3 and delays all major license decisions
- As of Q2 reaching out to many New Investors (VC) 2018 : Q1 – Q3
2018 : Q4
- New International Investor : 40% - drip financing – 3/5 Board members – new CEO
ALG X SL (Esp)
innotune
Start to think like a director
There is an old saying – ‘if you waddle like a duck, swim like a duck and act like a duck… then you are a duck.’ To become a director you need not only to fit the part, but look and act the part.
Remember, a board member sits above an organization and does not work in it, so your language and positioning needs to reflect a more elevated role where wisdom and judgement are more valued than organizational capacity to get the job done. !! But be PART of IT, not sitting to the side.
(Koen Hoffman)
Leadership & Cooperation
ENGAGING
Een inefficiënte board – zwak team
Een te aardige board
Start-Up Scale-up Pre-Transaction SME / Mid-Size
X X X ????
Seed : € 750K (‘06)
Series A : € 2M (‘07) Series B : € 5M (‘08) Series B’ : € 5M (‘12) Series B’’ : € 2M (‘14) Series B’’’ : € 3M (‘16)
Shareholders CEO / VC CEO / VC / VC / VC CEO / VC / VC / VC
Board CEO / VC CEO / VC / VC / VC CEO / VC / VC / VC / Obs
Management CEO / VC CEO CEO / VC / Obs / BusDev
• Friends & Founders
• Roll-up the sleeves
• Personal commitments
• Expanded Network
• Franco-français small VC funds
• Mutual respect
• Fast Informal // Formal decisions
• Many Informal contacts
• Decision time on the Corp strategy : M&A or JV
• Exit for VC ... Not all
• Observer biased … remunerated with Stock Options
• CEO good scientist … poor deal maker
• Runway shortens … finger pointing
BF Diagnostics (Fr)
innotune
• Deus ex machina … for advise
• Deus ex machina … for survival
Een efficiënte board – top team
ENVISION
Hoe draag je bij aan de vaardigheid van een RvB om een strategie uit te werken die leidt tot resulaten?
ENVISION
ERA Biotech (Cat)
Board Mtg 1
• Preclinical studies in mouse : significant better
• New Pharma opportunity : DNA Vaccines to treat prostate cancer Board Mtg 2
• Partners University of Konstanz (D) + spin-off plan
• Business Plan presented : operational, resources, milestones scheduled Board Mtg 4
• Response 1 local investor : “Lieven, what do you know, we don’t know?”
• And on the relocation option …
• Enthusiastic Full debrief on the Operational Plan, Financing needs and Use of Funds Between Board Mtgs
• Coincidental face-to-face mtg with Flemish Minister-president in Barcelona on relocation option
• Board members and company investors in Madrid and Barcelona
• Governmental bodies in Germany for grant money (€M)
• Hospitals and CRO in Spain and Germany for running the clinical experiments
• Face-to-face mtgs in US with leaders in the DNA Vaccines field Board Mtg 3
• Comparables of valuations : 5-25 multiples !
• Competitive DNA Vaccines in the pipeline
• Budget €250M but first stage €2.5M to enter Clinical I phase
innotune
• End of Project … end of Company
ENGAGING
Hoe draag je bij aan een goede connectie van de board met de Executives?
Uw key rol: anderen sterker maken
Team player
Self management en zelfreflectie: wat is mijn impact op de groep?
Ego in check
Investeer in persoonlijke relaties, binnen en buiten de board
Stimuleer connecties van de CEO met anderen.
ENGAGING
AGROSAVFE (B)
2015 : Series B round
• Change of Non-executive Chairman : VC investor Independent Board Member
• CEO : Science & Technology profile
• Chairman becomes Executive Chairman to support CEO in Fund raising
• Act as tandem and deeper understanding gives better assessment
2016-2019
• Change of CEO; ex-CEO becomes CTO
• Chairman becomes Non-Executive Chairman
• Chairman : NIFO principle : support CEO in transition, coaching
• Act as tandem preparing a Series C
• Value Inflection Points Business Plan / Financials / Leadership
innotune
EXECUTE
Hoe draag je bij tot de performance en evaluatie van die
performance van uw Executives, de RvB en de organisatie?
EXECUTION
R-POLYMER (UK)
Start-Up Scale-up Pre-Transaction SME / Mid-Size
Seed : £ 750K (‘06) Series A : £ 2M (‘07)
Series B : £ 10M (‘08) Pre-IPO : £ 5M (‘11)
IPO : £ 25M (‘12) Market Cap : £75M
Free float : 73%
Profile CEO
• Brilliant scientist and understanding his weaknesses
• Strong team around him : CFO, CBO, COO
• Until the IPO is the focal point for Investors
• Was also the Chairman of the Board
• But too central in all major decisions
• Not a strong decision maker
• And poor work/life balance
innotune
10 key take aways
• Intro nieuwe board members
• Buitengewone nieuwsgierigheid en passie voor de industrie en sector
• Uitstekende luistervaardigheden
• Hoog niveau van self management en ego in check
• Connectie met executives
• Goed voorbereid en ten volle geëngageerd
• Gebalanceerd, kalm, ondersteunend
• Out of the box denken
• Stellen van krachtige, goed voorbereide, vragen
• Feedback cultuur
Slechte Board
• Bezig zijn met uzelf, smart phones, enz.
• Defensieve houding
• Politieke manipulaties
• Zelf scoren ipv belang van de organisatie
• Weinig zelf kritisch en omgang met conflicten
• Binnen en buiten de board andere communicatie
• Vooral zichzelf graag horen spreken ipv echt luisteren
10 key take aways
Stop thinking about action and start thinking about questions.
Your task is to help others give clarity, propose action and take discovery to a whole new level.
Keep ego in check
Executive Search | Specialist Recruitment | Talent Service | Worldwide
