Challenge Founders to Think Differently
Khosla: In private companies, a board's job should be to challenge a founder. Have them think differently. Have them consider issues that aren't natural to them.
I'll even sometimes take positions I don't believe in — only because I want them to think from that angle. Founders can never tell whether I actually believe something or not. The job is to have them think multi-dimensionally. Founders usually come from one background, so they have a singular perspective. I try to add that multi-dimensional element.
I take positions I don't believe in — just to make them think from that angle. They can never tell.
A Board Can't Know All the Nuances
Khosla: A board comes in once every six or eight weeks. They're not spending enough time. The founders are there 80 hours a week. There's no way a board can know all the nuances of your business — and they shouldn't be pretending they can make decisions.
The only decision boards can do reasonably well is: is the CEO doing a good job? How to help them do it better? And if sometimes it becomes necessary, you replace the CEO.
A board comes in every 6-8 weeks. Founders are there 80 hours a week. A board can't know all the nuances.
Replacing the CEO Means You've Lost
Khosla: Mostly, replacing the CEO is a bad recipe. If you have to replace the CEO, you've lost the essence of a company. We try really, really hard to make a founder successful by surrounding them with people who make up for whatever experience they don't have.
If you have to replace the CEO, you've lost the essence of the company. Surround them instead.