All Segments
a16z Podcast | Building the Right Technical Advisory Board
25 segments available
There is increasing interest among companies -- small and large -- in putting together technical advisory boards. It sounds pretty straightforward: get some senior technical experts to help with the technical speed bumps. But if that is all your technical advisory board is, you are missing out. Built and utilized correctly, a technical advisory board can be a huge advantage when it comes to mapping out a long-term strategic plan, finding talent, and building a great engineering culture. On this segment of the a16z Podcast we break down the right way to build a technical advisory board; what you should expect from the board (and just as important, what you shouldn’t). And for those looking to serve on a technical advisory board, the reasons to do it, as well as the things to consider before committing. This conversation was recorded as part of an event featuring four technical experts: Arnie Goldberg from PayPal; Purnima Padmanabhan, former CEO of Cavirin; Alex Roetter, SVP of Engineering at Twitter; and a16z General Partner Peter Levine.
Segments Timeline
The Value of Technical Advisory Boards
In this segment, Michael Copeland introduces the concept of technical advisory boards, emphasizing their potential beyond just solving technical issues. He discusses how a well-structured advisory board can significantly aid in strategic planning, talent acquisition, and fostering a strong engineering culture.
"welcome to the a 16z podcast I'm Michael Copeland there is an increasing interest among companies small and large in putting together technical advisory boards it sounds pretty straightforward get som..."
Clarifying Technical vs. Board Advisors
Peter Levine clarifies the distinction between technical advisory boards and board advisors. He explains that while board advisors typically serve with the board of directors, technical advisory boards focus on providing specialized technical insights and support, which can be crucial for startups and growing companies.
"break down the right way to build a technical advisory board what you should expect from the board and just as important what you shouldn't and for those looking to serve on a technical advisory board..."
Understanding Customer Advisory Boards
The discussion shifts to customer advisory boards, with insights from the panel on their differences from technical advisory boards. The panelists share their experiences on how customer advisory boards can provide valuable feedback and even nominate technical experts to contribute to technical discussions.
"Peter Levine Peter Levine starts us off I was talking earlier with with a couple of folks and one of the things you know this notion of technical advisory board I first want to clarify that there's a ..."
Defining Goals for Technical Advisory Boards
The panel emphasizes the importance of clearly defining the goals for a technical advisory board. They discuss how understanding the specific needs of the company can guide the selection of board members and ensure that the advisory board effectively addresses technical challenges.
"talked about customer do we have two of those and like what's the difference should we think about one maybe just we can start okay go ahead yeah so a box we had we have both and they're very very dif..."
Expectations vs. Reality in Advisory Roles
Alex Roetter shares his experiences with technical advisory boards, highlighting the variability in expectations and outcomes. He discusses how the structure and purpose of these boards can evolve over time, and the importance of clear communication between founders and advisors.
"who you get on there I needed technical problems too to get solved and not that I couldn't solve them within the teams that I had but a lot of it was I needed smart people from the outside that didn't..."
Leveraging External Expertise
Arnie Goldberg reflects on his experience at Box, where he utilized a technical advisory board to navigate critical architectural decisions. He explains how external experts provided valuable insights that helped the company avoid potentially disastrous choices during rapid growth.
"found the same advisory board customer advisory board would nominate some technical folks from their teams to actually participate in let us say a beta or an alpha or even early feedback so some of th..."
The Structure of Effective Advisory Boards
Purnima Padmanabhan discusses the structure of technical advisory boards, noting that smaller boards (6-8 members) facilitate better discussions. She emphasizes the need for flexibility in terms and the importance of having a diverse range of opinions to foster productive debates.
"customer advisory board instead I don't know but I think there's being super crisp on what you're trying to do is where I would start and then you figure out the right so Alex maybe just on that like ..."
Navigating Technical Choices with Advisory Boards
The conversation continues with insights on how advisory boards can help startups make informed technical choices. The panelists discuss the dynamics of decision-making and the role of advisors in guiding companies through complex technical landscapes.
"more formal things and did you find that the expectation was about the same unreal I guess are there any surprises like they came up on I think everyone is surprised and I really think that's it's it'..."
The Impact of Advisory Boards on Company Growth
Arnie shares how the advisory board's input was crucial during Box's early growth stages. He highlights specific instances where external advice helped steer the company towards more reliable technological paths, illustrating the tangible benefits of having a technical advisory board.
"and so I needed some help in arbitrating some pretty deep technical choices and architectural choices what one good example would be so without giving too much away about box obviously it's about you ..."
Advisory Board Dynamics and Relationships
The panel discusses the interpersonal dynamics within advisory boards, focusing on the importance of relationships between founders and advisors. They explore how mutual respect and understanding can enhance the effectiveness of advisory boards in guiding startups.
"the company was scaling real quickly and while in my role as VP of engineering for box trying to scale the company I had a co-founding CTO that didn't want to manage any more that's basically how I go..."
Best Practices for Advisory Board Meetings
Purnima concludes with best practices for structuring advisory board meetings. She emphasizes the need for clear problem statements and open discussions to maximize the value of advisory sessions, ensuring that all voices are heard and contribute to the decision-making process.
"constant feedback and so you have this from a structure perspective six to eight members is actually works out well the other thing is your needs change so instead of having a four year term usually w..."
Setting Clear Objectives
The speakers emphasize the necessity of defining clear objectives for advisory board meetings. They discuss the importance of understanding what problems need solving and ensuring that all participants are aware of their roles and the meeting's purpose to foster productive discussions.
"gonna ask you how often did you meet because that's the other factors like lemon number of people and then like limit number of meetings so what did you've what do you think is most affected I've done..."
Avoiding Presentation Pitfalls
One speaker shares a cautionary tale about ineffective presentations during advisory board meetings. They stress that meetings should focus on discussion rather than lengthy presentations, advocating for a problem-focused approach that encourages active participation and valuable feedback from advisors.
"things and make sure that you're setting the right contact if it's just you going in as the CEO or founder or head of engineering whatever it is you probably know why you're there and what you're tryi..."
Maximizing Meeting Impact
The discussion continues on how to structure meetings for maximum impact. The speakers highlight the importance of preparing problem statements in advance and ensuring that discussions are meaningful and actionable, rather than just formalities that waste time.
"can fail yeah Arnie maybe along those lines what you know sort of frequency of meeting which we just talked about how long should one of these meeting you know in general and then what's a what sort o..."
Choosing the Right Advisory Board Members
The conversation shifts to selecting members for the advisory board. The speakers discuss the importance of diversity in experience and perspectives, suggesting that effective advisory boards are formed through personal connections and introductions, ensuring that members are genuinely interested in contributing to the company's success.
"important for me to understand what are we now just going through the motions and it's no longer actually an interesting exercise or an important exercise and it's okay to disband these things if they..."
The Art of Advisory Board Engagement
The segment concludes with insights on engaging advisory board members effectively. The speakers emphasize the need for clear communication about expectations and the importance of fostering an environment where advisors feel their contributions are valued and impactful.
"give them a heads up on the problem statement so that they can prepare I have had some fantastic meetings albeit not one example I have is it's not necessarily a technical problem it was around how do..."
Finding the Right Advisory Board Members
This segment focuses on strategies for selecting the right members for a technical advisory board. The speakers compare this process to hiring, emphasizing the importance of leveraging personal networks and second-degree connections. They suggest meeting potential advisors over coffee to gauge their fit and expertise, ensuring that they can provide valuable insights and contribute positively to the board's dynamics.
"these that's a great question I mean it's it's not dissimilar to hiring I mean I suppose it is a form of hiring I think I've only ever sat on ones that I've been introduced to from people that I know ..."
Building a Diverse and Effective Board
The discussion highlights the unique opportunity to assemble a board of exceptional experts in Silicon Valley. The speakers emphasize the need for a harmonious group dynamic, where no single personality overshadows others. They also touch on the importance of ensuring that board members can engage constructively and contribute to the overall goals of the advisory board.
"advice and you know I think it does have to gel as a group you know to where you know it's all personalities sometimes pretty big personalities and you have to also make sure that you're one person is..."
Unexpected Benefits of Advisory Boards
In this segment, the speakers reflect on the unexpected positive outcomes of having an advisory board. They share personal anecdotes about forming friendships and receiving referrals for hiring needs, which were not initially anticipated. The conversation underscores the multifaceted value of advisory boards beyond just technical advice, including mentorship and support in navigating company challenges.
"after him are there were there any may be open for any of you unexpected outcomes things that you might change going forward like what did you you know maybe what do you learn and how would you how mi..."
CEO vs. VP of Engineering Perspectives
The speakers explore how different roles within a company, such as the CEO and VP of Engineering, perceive the value of a technical advisory board. They discuss the importance of validation from the advisory board regarding problem statements and the implications of technical decisions on product management. This segment highlights the diverse expectations and contributions of various stakeholders in advisory board meetings.
"find it was interesting how you know you try some things which at the time seemed right and then you learn in retrospect they weren't right and you learn from it and then you oftentimes forget that yo..."
Characteristics of Effective Advisory Board Members
This segment delves into the traits that make for effective advisory board members. The speakers emphasize the importance of quickly grasping context and recognizing patterns from past experiences. They discuss how the best advisors can articulate their insights in a way that fosters debate and clarity, ultimately guiding the company in the right direction while avoiding common pitfalls.
"the biggest one is validation of the problem statement especially you're building a company you have a you you want to lay out okay this is the pain point I'm trying to solve it's this real well it re..."
Real-World Relevance in Advisory Roles
This segment explores the value of real-world problem-solving in the context of technical advisory boards. The speakers discuss how informal and honest interactions can lead to more effective advisory relationships, emphasizing the need for advisors to address current challenges faced by the company rather than adhering to rigid agendas.
"ones so the ones who sit there just ingesting information but never giving back in your energy or the ones that you know just end up being somewhat useless yeah yeah okay and Alex what's you mentioned..."
Compensation Models for Advisors
The discussion turns to how technical advisors are compensated, with a focus on stock options as a common practice. The speakers share their experiences in structuring compensation packages that align with industry standards, including vesting periods and ethical considerations when advisors are also potential customers.
"actually be useful yeah how do you compensate a technical advisor yeah so for me it was pretty straight forward I just gave a stock option package that was equivalent to a seasoned engineer and you kn..."
Navigating Ethical Dilemmas
In this segment, the speakers address potential ethical pitfalls when forming advisory boards, particularly when advisors work for companies that may become customers. They share personal anecdotes about navigating these challenges and the importance of transparency in advisor relationships to avoid conflicts of interest.
"okay how I've seen quite a quite often when I've setup customer advisory boards which may be slightly different all your advisors work at companies and often there's an ethical dilemma of like if they..."
The Value Beyond Compensation
The final segment highlights the intrinsic value that advisors find in their roles beyond financial compensation. The speakers reflect on how advisory board participation offers a refreshing perspective away from daily operational pressures, allowing advisors to contribute meaningfully while gaining insights into different challenges faced by startups.
"that's one form of but that was kind of something that when she ended up serving on the board yes I mean put tracers basically for free okay the second one is a very interesting one that you brought u..."