Every CEO should strive to take on an external Non-Exec Director (NED) role.
Why?
The role and responsibilities of the CEO are very different to the role and responsibility of a NED. Understanding boards, the role of boards, ways to best manage and work with board members and board chairs will usually greatly enhance your organization's success.
To hone their leadership skills, many seasoned and respected CEOs will also be NEDs on another company's board.
Sitting on someone else's board will enhance and refine your own understanding of how boards - good and bad - operate behind the scenes and help you optimise your own board.
The boards of life science ventures are rather unique in terms of composition. They also require the board as a whole to address a complex set of problems, fast and efficiently (usually within the cycle of the fund).
As an effective operator, you need to:
Understand the peculiarities and potential issues of an investor-dominated board and learn how to mitigate the situation.
Have a solid understanding of the players, their likely interests, and the secrets to managing this complex yet critical set of relationships. What it takes to achieve the right balance and manage the investment, including an exit strategy, within a specific timeframe.