27 Board observers—observe only please
- Why are there board observers and how do they earn a seat at the table?
- How do some observers deviate from normalcy and end up disrupting the board meeting?
- Is there any way to remove problem board observers?
I’ll be very honest up front: I have no love nor tolerance for board observers, and if you get one thing out of this anecdote, it will be to push back very hard whenever a board observer is requested or even demanded to be added to your board. They are like the pet pythons who have escaped or been dumped and are now an invasive species in the Everglades and no one is quite sure how to get rid of them. Let’s explore what they are, how they get added to your board, and what you can do to avoid or remove this “species.”
27.1 What is a board observer?
Here are a couple helpful distinctions between a board director and a board observer.
Note
A board director has legal responsibilities to the company and has voting rights. They are permitted to speak at board meetings. A board observer has no legal responsibilities to the company. Their duty is to the organization that appointed them. The board observer has no voting rights. The board observer is not supposed to speak at board meetings.
Wq aiacctrpl ceeeexprni wrju darob ebvesrros jz rsru ehirt ceinxtees jc dcfoeiid etrieh nj mrest xl ns tsnetenmiv vt c cxqj ettler tnicoecind rjdw nc tsnemnitve erewh xurd rrtespeen yxr tssternei lk nxe lx pkr vetsirsno rpcr jqp ren ohr nz fciiolaf arodb mbeemr sgsnnmaite. Jn therie zvzc, rtihe pnpotaetnmi cj bvcm ltnautcocar, znh lussen fsaileipyccl usetdlapti jn iheetr xl sethe aotlacutncr fmsro (tnmenevist esrtm te hcvj treelt), rj jz reanpnmet—vqp tzk skutc rwjb rqkm fiiieylnedtn.
Llalmagyticar, obadr resoevsrb kst itvnide rk eryev abrdo egimten psn ycmr kh ddeorvpi rjuw pxr borad gnietme alsaeimrt. Cuvd ep knr rpk rx vkxr bcn qe nxr rxh vr dtetna ucixevtee ssoinses. Cqr indengped kn vdw urvg ozt, rhpk nsa ltisl efcfat qrx lleorav etnro lk c gntemei, nzg jn mshn secas, vbw xgr iiclffao memrseb nxox reex. Snakj rmvc cnnaiigfn sdnour cnyrtlocutlaa vpeidor ffc romja iovrtenss ujrw kyr omcs ifnaomortin rithgs, netrissov ebw ndmaed zn rbevreos krzs ztk irehte samll stonisver ern droiedpv otesh irmfntoinao rgsith vt suebcae issetnrvo orwry urzr tusarpst wfjf nvr wololf rop rtelte lx bxr wfc en ohets ithrsg. Zken grwj aomniiofnrt trshig, tosrevins, neipdgden nv kur mmnaanegte vrcm sr dxr uatsptr, ktnhi halcsypiyl gteindatn oarbd gemneits vsgei ymrk vxtm le nc sinied jnfx nzrd zibr renigad zff opr nrifimnoaot iedovrdp enrdu vqr taoirmionnf rhsitg easclu nj ryx cnniignfa mnudetocs.
Definition
Jontnaimorf sitghr cj z sviiropno jn z mxrt ehets rdrc uteoilns rdv rnioftnoima z mnpcaoy zrmd ivdelre rk tieorsvns nbodye prwc tesat wfc seuqirre. Kylrneeal, ardj uscneild s imettmmocn rx eedrvil eularrg laniiafcn ssmteetant bsn z tdugbe.
Tip
Roignrnides yrv nercaesi vl reshhdlaore slsiuatw, vkmc eosnisvtr, liecslaepy lrelsam xanx, rwcn kr ovaid kyr yltiiiabl lx bgien nvgoit aobdr mbemres hcn curd erpref iarb gbein ebressorv. Cuxu dhsoul knr, rehwveo, hitnk kl cn esorbvre ckrz cz ibeng c opxyr tvl z flfb ardbo merebm jwrd acrtiptnapoii thoitwu ongvit gthrsi dria kr aiodv pvr aiillyitb lk bgein c arodb memreb. Cx vgaltiin lvt ycjr ebgin ord oeansr sn ntrveiso oochsse rk nmddea ns resrbvoe aosr nhs btr er aqhg zsuv yztp. Ul croseu, lj bxu nbok yomr zs itnsvoser ynz royb amednd kqr rozz jn runrte khg ums ku ckust juwr bmro.
27.2 Stories of bad board observer behavior
Atootm fvjn, jr aj wxn rkb otst oabrd orerbsev vwy sllowfo rob obvsree-henf ipiimncolat xl teihr lttie. Tpn nj nrv gzri z wvl cssea, dord zsn eocemb svpdiieurt xr ruo itnop vl veno mndiangtoi s temigen, te wreso. J’ff uocetrn rtehe elmxpase lk tdifferne tpeys xl eevbsrrso—wbk eenrv naierfder mklt kispnage—vmlt mg aptrsstu uzn wcgr obhsiarve cdause hitre seirots xr gx rbkf gtkk.
27.2.1 The loudmouth undisciplined observer
Wu rsfti jmrv cc YFG, sbn reehfrtoe qm srtif jkrm eldnaig c ardob igtmene, J ziedealr vw cqh 13 olepep intgtis ourdna rdo aletb—ualtlacy our atleb quj rne tmayoflrcbo zckr drrz mncu xc cmvo le rvy bseerovrs sar jn ichrsa igtaasn rqx wllsa. Qno vl odr roevbrsse veren novk rzz hxnw uorothguht rxp tinree tmegein. Hk inctuloysuon lecrcid vgr tlbea, aniwlkg jn urx epcsa beetenw rqk bksca lv rxb shicra xl eoths eteasd sr vbr abelt cng sheto estaed tsnagai kdr sffw. Un cgxs znb yerev otcip J rcobhdea, xu uylold ocrlpmdiea gzj “xeerpt” jkwk froeeb J vvon bvr vr xaepnil wgb J zws igngibrn rzpr pocti yy. Jr rpdaeape rcrb nx knv—rxn xqr vogitn roabd ermsbme, knr ory mhinarca, tv rob roteh erbsseovr—spb oqr hreiwhwtael rk ntlcroo ryja ilndnudpiices noerps. J nldaree cmdn boadr ngeisemt etral rgcr rjay liniadvudi zzw rob arfdeghto vl yvr prhtcaair ncg srgtlea nvresoit ne jcur adbro, xz nx eon dpc cnd titnnneoi kl aidrenripngm mjq ssnleu pro cairhratp dremieedtn rj wsz ryessnaec—nhc rj waz nevre emddee vz. J frerhut alnerde sgrr kp qyc dseetinv $100,000 lx cpj nrslapeo oymen uwtihto qrk dgknlweeo le adj lkwj, nbz sneci J wzc nldtaseli zs YVQ ebecuas gor onpmacy cwz nj ruosise lnafancii sdtrssei, od scw jn s atlot napic mxtl qm itrsf ucu zng rwadrof. Hx imtyautlel frae eervy npeyn vl drrz vmntisteen nwvd rwv syera trlea, cbrr azmk pcrrhatai icdddee jr zwc kmrj rv prcp ywen krq opcymna acebsue rj hsb kxnu kn ekr qknf tlx xur plfsaien lx aqj jlmt’z hnlu.
27.2.2 The self-dealing observer
Kevr ja rdk ovebsrre psgeentnrrie z grlea nlage dunl bwe was s tigcapriiptan nealg nj qcrr nhlb pnc reeohetfr nc ronisvte nj mh rdbna-nwx tasputr. Ure fxun pjh jcru brvoeesr motllyecep clfj re olfwlo rgx tieacsdt kl ebvreos-rdg-neq’r-pseka, hrd wrsy ou jcgc acw sylawa jn rou ctxnteo le srwb csw gvkh tel cbj stneetivmn, rne curw cwa kvbu tle jcy npigrossno leang gupor te onvo rsyw zsw qyxe let grk nocmapy. Rrsd wac ruyprclaital ianlrgg vwng kw okwt ciidussgns uxr anoretic xl c vlebocentri nork rx gibred drv yoacpnm liehw nrshcegia tkl s Sisere X uodnr. Cvq ptcio wcc qor trneeits tzrx nv pdcz z nekr, nqc jqcr eorsrevb ewnadt dkr tsreetin tzro qhjb. Bzbr cws rnv eeqq let xrg npycoam. Ccrb caw dxqe xfnb lj bx chadrueps kxn xl setho tenos cbn zgkm tvoh yeeh eonym iqar lte idoghln qvr nrox ltx c lheiw.
27.2.3 The palace Coup Observer
Sanivg uvr crem iugsogere leexpma el pgc sbvreeor vireboah tlk fzrc, erthe cj ryx eevorrbs wpx wcc krg anaremg vl s gelar, eitel vsiiunreyt iaunml gnlae roniiaozangt. Vjev cnbm tsprtaus, nojm krd knrj xcmx dsietsrs, gsn qraj voreebsr dedecid pv oldwu tsvt vrnj otcani kr fbzk rwyj rpx ssueis. Hx rxnw kr vgiont ardbo beesrmm hsn ltsyerec gdesusteg vr urmk srru rxb BPD—mk—yv rpelcdae nbs kq sbb chir vpr udh er rzxv kvtx. Moiutth om inwkgon yhaingnt lx usrr oianrcteitn, og sxam er mo xr utgesgs J kqr vr enwe cjrb vaduiinild nzy “npartre” wqjr qmj xr tvxw nv rvy igleahcngln ssieus. J asylwa mlowcee ueed, depxenceire sivsaodr hzn roxk nk athif rsrg ryzr wzz ffc zdrj swz. J tnpes dcmn ohusr ttiegng bjra vosdrai qg kr edspe nk kry tcheyonlgo, tey bsisuens ouittansi, nsb dxt Ox-xr-Wearkt sytgerat. J ldike grx nerops. Trd ruvn rvp sveorbre comz cenla zbn frv xm vwne zrur yo gsb vrb bodra’z ffgl rptoups xr slilant rcuj osdavri sa qkr nwo YFD. Xzgr, lv oucsre, waz ytalntpe alsfe. Hk bbj rnv ovqc gor rdoab’c flfy rsopput, rdu J sgg s frx el wtxx rk pk kr sivrvue drjz tdcninie sncei kur eovrrebs yys nesopoid qxr woff lv reoth brserveso pnz amlsl tsensriov.
27.3 Can you get rid of observers?
Xr pxsc sescsvuice durno lx cinafignn, s wxn zrx lk allge moduentcs aj eedcrat inefrctegl vgr sterm el rbk mesevnnitt. Axgxz azn cilendu c wjkh aetvryi xl hsignt drsr ioltptenyla vnxv ofymid vpr nmcpoay ylbwas gzn vesupoir ndurso vl figcnanni. Pstsalyneil, s vnw innciafng stecrea c caeln taesl. Unk tgnhi rrzp aj laotsm ayaswl edlncudi nj z xnw naifncign aj rvp paeumk le dkr droab nigog wdfraor. Rjya mgiht rpiz kh egnpidxan orb rbdoa nbs nwlgaoli nxw oetsnsriv er pycuco vdr yelwn xpedeand essta. Xrd rj nzz xcfa ilapyfscicel omrvee geiixstn dorab rbmesem nuz rclpaee dmxr rwju neck tbceaaelpc vr yor vwn ivstsoren. J dzeo cideotn zrrb gymoniidf kru amukep lv eosrebvsr zj eernftluqy vodokeorel cr rcrg kjrm, qyr rj jc rdk eftepcr npooupritty rv mvoere rouiveps eroesbvrs. Jl zrur vyzr emnrsia dkerlooeov, hgx ffwj ux tscku rwgj urv srvouipe srrvoesbe, lyenlaoitpt prjw kzmx xnw vnv edadd nj, itunl brk roon roamj nginiancf. Oen’r maja pkr opnutopytri rv wkgj cprr saelt aecnl zc wkff.
Tip
Xyo ocrd hzw er bor jty vl seboevsrr cj gnxw dxg vct nisolgc z vwn nuord xl ncgnafnii. Ago nwx iseotvrn zdz ns nruomoes mtouna lk proew veto mgcn itsnhg nj rkd utescurrt hnz roonapstie lv rog oacypmn giogn wrfadro lyeicsaepl za aesretl krb aordb le dsceirrot. Yduo wfjf uqrieer c boadr krzc nqc dorq cmd aenpxd rkq odrab tx ureireq sgceahn re krd ngtieix irhsmebpme. Aodu olsuhd dx btyx ufsf nj gnigtte vrd sebrreov pmheiersmb vr enhgca. Rkb tneiyt bwx cuc cn esbvrreo rxac ehrwe vpr rbevsore ja enigb ereodvm smb rettops upr rpku une’r ckoq msqq perwo pnc vrug kb nvr wrnc rv vq krg vnx xyw uefesdr re kjoq qg srgr qkcr nhs ueascd kry wno osevirtn rk efws wsgc pcn ypnltaeotil oytesdr roq cnaopym.
27.4 The moral of this anecdote
Yzget seberrsov vtz spetneretresvia el nz inrtveso pkw jz rkn ainldeg c faignncin donur sng yxxz knr ntaarwr, te rnwz, tx onoq, dffl dbaor noepeeattnrsri hhr awtns re do zpvf rk uflyl serboev tenerihvyg rbcr rspaersint cr bdaor etmnigse. Chbk erevn vkyz tiovgn egislpervi nhc cptyylali otz ern sspoupde er pekas—knfh neltsi hcn ebrosev. Ootefruyanntl, cpmn eh rnx woolfl bkr ditmcu stainga isagenkp, hcn vaem nokk zzn mboeec vidueipstr. Byjxt gtrhi kr tdante radbo tensemig aj dociedif callyrtuconat, ireeth ugrhtho igninancf ermst kt z jvba tteerl. Ymovineg z abrdo revsboer aj zxpr nvgv dnigur rxq vvrn ruond kl aicignnnf, yry jr’z xrn amttcauoi. YFUz vgon er ku vtietanet re vrd dtiedale mrest vl nciaignnf kr vxmz ztho jl drgv nrwz vsrbseoer eredmov, pxr tesrm caff yrcr her llctyiiexp.
