kellblog.com · 2018-03-29
· 2989d
Aligning Board and CEO Expectations: The Critical 'What Does Success Look Like?' Conversation
CEOs frequently fail to discuss success definitions with their boards despite misaligned interests among founders, investors, and independent directors. This article explores why these conversations are avoided and why asking "what does success look like?" is essential for board alignment. The author advocates for individual and group discussions to surface conflicting definitions of success before they become critical issues.
Metrics in this report
Early Stage VC Return Target
10xmultiple
expected
return expected over 7 years for early stage fund investments
Later Stage VC Return Target
3xmultiple
expected
return expected over 3-5 years for later stage fund investments
Unicorn Valuation Threshold
1000000000$
minimum
valuation target referenced as success metric for startup boards
Venture Capital Fund IRR Range
10-35%
range
difference between underperforming and exceptional VC fund outcomes over ten-year fund life