In any organization, the governance structure involves a complex interplay of motivations among various board members, each bringing their own objectives and priorities to the table. These motivations can influence decision-making and sometimes lead to conflicts that impact the company’s direction and overall governance. Here’s a breakdown of the different motivations among founders, management, and external board members:

Founders and Shareholders

Founders and shareholders often come to the table with a range of motivations that can include:

• Altruistic Goals: Many founders are driven by a desire to make a positive impact, such as “saving the world” or addressing significant social issues. Their vision may focus on broader, mission-driven objectives that can sometimes conflict with financial priorities.
• Financial Objectives: The goal of “making money” and achieving a “return on investment” is central for many shareholders. They are often focused on the financial performance of the company and may seek quick exits to realize gains.
• Personal Aspirations: Founders might have personal goals like “being the boss” or pursuing “ego trips,” which can lead to decisions that prioritize personal satisfaction over the long-term health of the company.

These varied motivations can sometimes lead to a desire for quick returns or exits, potentially clashing with the company's long-term strategic needs.

Management

Management team members, who are often employees holding shares in the company, have motivations that can include:

• Monetary Gains: Managers are focused on personal financial benefits, which can influence their decision-making, particularly if they have stock options or other financial incentives.
• Job Security: Ensuring their own job stability and career advancement is a primary concern for managers. This focus can sometimes conflict with broader company objectives if their personal short-term goals diverge from the company’s long-term strategy.

The dual role of managers as both employees and shareholders can create conflicts of interest, especially when personal or immediate financial gains are prioritized over the company's overarching goals.

External Board Members

External board members, often representing investors, bring their own set of motivations:

• Governance and Control: These members are primarily tasked with overseeing the company’s strategy and ensuring it aligns with shareholder interests. Their role is crucial in maintaining effective governance and strategic oversight.
• Personal Renown and Ego: Some external members may also be motivated by personal recognition or prestige. While their primary responsibility is governance, their personal ambitions can sometimes influence their contributions.

External board members are essential for providing objective oversight and ensuring that the company’s strategies align with the interests of investors and shareholders. Their independent perspective helps balance the various internal motivations.

Understanding the different motivations of board members is key to navigating the complexities of governance and strategic decision-making. Founders and shareholders may be driven by a mix of altruistic, financial, and personal goals, while managers focus on financial benefits and job security. External board members bring a governance perspective but may also have personal motivations influencing their role. By recognizing these diverse motivations, organizations can better manage potential conflicts and align their governance structure to support long-term success.