Is My Board Dysfunctional Or Is This Just Normal?

If you’re a founder, investor, or board director, you’ll know that startup boards are rarely neat and tidy. They can be scrappy, sometimes chaotic, and often filled with strong personalities. That’s part of the early-stage ride.

But sometimes boards cross a line from constructive challenge into destructive dysfunction. And once you’re in that territory, the board can stop being a growth engine and start becoming a dangerous brake on the business.

So how do you know the difference?

Why Boards Go Off the Rails in Startups

Unlike in big corporates, most startup boards are not populated by seasoned directors. They’re usually a mix of founders, investors, and advisors... all with different motivations, levels of experience, and expectations.

Add to that:

• High stakes: money on the line, fragile cash flow, survival mode.
• Fast change: business models pivoting, teams doubling in size, markets shifting.
• Personal dynamics: founders under pressure, investors chasing returns, egos in play.

It’s a perfect storm. Some tension and scrappiness are inevitable. The question is: what’s healthy, and what’s a red flag?

The Red Flags You Shouldn’t Ignore

1. Toxic behaviour

If a board member undermines, manipulates, or intimidates, that’s not “healthy tension” — it’s poison. Some people thrive on control and chaos. You won’t change them. If you’ve got one of these in the room, you need to plan their exit.

2. Money distortions

Money changes behaviour. Don’t pay board members and they drift; overpay them and they stick around even when they shouldn’t. Neither is good for the business. Be thoughtful about incentives, and remember: compensation is about alignment, not appeasement.

3. Big names, small value

It’s tempting to recruit the “logo board” — the person with the big CV or brand name. But if they’re not engaged, curious, or aligned with your values, you’ve gained a photo opportunity, not a partner in growth.

4. No psychological safety

If people are afraid to speak up, challenge, or admit mistakes, the board stops functioning as a decision-making body. You end up with rubber-stamping or hidden conflict — both dangerous.

5. Hidden agendas

A board member angling for an early exit. An investor pushing for strategy that suits their portfolio, not your company. An advisor wanting a future exec role. If personal motives outweigh the company’s purpose, trust erodes fast.

6. Overreach or absence

Two extremes: the micromanager who tries to run the company from the board table, and the absentee who never shows up. Both are signs the board is out of balance.

What’s Just “Normal” Scrappiness

Not everything that looks messy is a problem. Some chaos is simply part of early-stage growth.

• Messy conversations. In young companies, board agendas sprawl... strategy, funding, product, operations. It’s normal, as long as the discussion ends in clarity.

• Clashes of opinion. Disagreement is healthy when it sharpens thinking. If every vote is unanimous, something’s wrong.

• Inexperience. Many startup board members are learning the role as they go. Some bumpiness is to be expected.

The difference is whether the mess ultimately adds clarity and momentum or whether it drains energy and undermines trust.

How to Fix a Dysfunctional Board

1. Get the right chair

The chair sets the tone. A strong chair manages dynamics, balances voices, and ensures the board serves the company, not individual egos. Without this leadership, dysfunction festers.

2. Reset purpose and roles

Founders run the company. Boards provide governance, strategic challenge, and support. If those lines blur, things unravel. A reset conversation can bring clarity.

3. Build for values, not just CVs

Skills and experience matter, but values and approach matter more. Recruit people who share your vision, are open-minded, and can hold both support and challenge in tension.

4. Refresh the table when needed

Boards aren’t static. As the company evolves, so should the board. Don’t be afraid to move people on if they’re no longer right for the journey.

5. Create healthy process

Simple but powerful: clear agendas, good papers, agreed decision-making processes, and regular board evaluations. Structure creates safety, which creates trust.

For Founders, Investors, and Directors

• Founders: Trust your instincts. If something feels off, test it with people you trust and act early.

• Investors: Remember you’re there to serve the company, not your own return profile. Ask yourself: am I making the founder’s job easier, or harder?



• Board members: Be self-aware. Are you contributing meaningfully, or just adding noise? Are you aligned with the company’s needs today, not yesterday?

Final Thought

Boards in startups and scale-ups will always be a little messy. That’s normal. But dysfunction isn’t something to tolerate.

If your gut tells you something’s wrong, listen. Talk about it. Act on it. Because a great board can be a company’s secret weapon. A dysfunctional one can quietly kill it.