By Mike Price, EFM Board Advisor & MPA Founder

Too many founders build boards that look impressive on paper but slow the business down in practice.

Nearly half of directors in the UK and US say their boards add no strategic value. A third believe their boards actively hold the company back. So why do we keep assembling them this way?

Often, the answer is comfort over performance.

The Real Cost of Underpowered Boards

Startups and scaling businesses often form boards based on relationships, reputation, or regulatory need, rather than strategic fit. The result is what I call a "comfort board" well-meaning, polite, and passive.

If no one is challenging assumptions or holding leadership accountable, your board isn’t governing. It’s glossing. And that lack of friction is costing you real growth.

Five Mistakes That Break Boards 

1. Building at the Wrong Time

Some boards are created too early with the wrong people. Others are too late, after something has already gone wrong. The worst mistake is failing to evolve the board at all.

As your company grows, your board must grow with it. The individuals who were vital during your startup phase might not have the strategic depth required for scale or succession. Loyalty matters, but so does relevance.

2. Cheerleader Syndrome

If your board is filled with people who think exactly like you, you are unlikely to get the challenge you need. That may feel supportive, but it’s risky.

Effective boards create constructive tension. You need voices that push, question, and balance decisions. If everyone agrees with you, you're not running a board. You're running a fan club.

3. Lack of Challenge

Many non-execs avoid speaking up because they want to stay on the payroll. I’ve seen it too often. They keep quiet, collect their retainer, and avoid risk.

You can fix this by offering fixed-term contracts for non-executive directors. Two years. Clear objectives. A defined mandate to contribute. That way, non-execs feel secure enough to speak honestly and add real value.

4. Confusing Advisors with Board Members

Having someone with a powerful network is useful, but that doesn’t mean they should be on your board.

If someone brings connections, pay them for introductions. But don’t confuse that role with governance. Board members are there to shape strategy and hold leadership accountable. If they’re not doing that, they don’t belong on the board.

5. No Long-Term Vision

Too many boards focus on the past whether that's revenue from the prior month or previous quarter results. They miss the bigger picture.

Boards should be focused on what the business looks like in two, five, or even ten years, using strategic financial guidance to plan with confidence. What will success look like at exit, and who do I need around the table to get there? This is where business growth and exit planning becomes critical and if your board isn’t asking these questions, it’s not leading.

The Board Design Canvas

We have introduced the Board Composition Canvas, a tool that helps founders rethink board structure. Instead of defaulting to familiar names, we ask leaders to consider:

• Strategic capability gaps
• Thinking and behavioural diversity
• Needs based on the current business phase
• Fractional versus full-time expertise
• Exit strategy alignment

This leads to more effective boards that operate at the right strategic level.

The Role of Non-Execs Needs Redefining

Most underperformance from non-execs isn’t about ability. It’s about unclear expectations.

You need to define what success looks like. Be specific. What kind of behaviours, input, and outcomes do you want? Give your non-execs a clear purpose and they’ll step up.

Boards also need strong Chairs. People who listen, balance different voices, and create space for deeper questions. The most valuable insights often come from the quietest contributors.

Culture matters too. If your boardroom punishes disagreement, even in subtle ways, the smartest voices will stay quiet. Your non-execs should feel empowered to challenge constructively.

Founders: Stay Close to the Board

Founding a company can be isolating. Only those who’ve been there understand the pressure of making payroll with no cash in the bank.

That’s why your board should include people with real operational experience. Not just investors or managers, but those who have built, run, and exited companies themselves.

If you’re ready to build a board that supports growth, ask yourself:

• Are these the right people for where we’re going?
• Who is constructively challenging me?
• Do we have the skills to scale or exit?
• What will success look like in three to five years?

Ready to Build a Board That Works?

We help growth-focused businesses design boards that do more than meet governance requirements. From fractional CFOs to strategic NEDs and board strategy reviews, our team brings experience, insight, and real-world understanding.

Book a 30-minute consultation today and start building a board that supports your next phase of growth.

EFM are apart from MPA group.