Culture Starts at the Top: The Power of Boardroom Openness and Inclusion

It is often said that culture starts at the top. But what does this actually mean, and how does it apply to the boardroom? Sandford Capital’s approach to inclusivity during my observership was a front-row seat to how deliberate cultural practices can shape effective governance and ultimately strengthen an organization.

Building an Inclusive Culture

At Sandford, inclusion goes beyond simply having a seat at the table; it is about ensuring that everyone feels engaged, valued, and empowered to contribute.

Each boardroom has its own norms, and observer roles can range widely—from passive, silent observation to occasional input or active participation. When I first organized my observership, I wasn’t sure what level of involvement to expect, how open the board would be to my input, or even what the discussion norms and protocols were. And, with this much uncertainty, I was nervous.

From the outset, Sandford made it clear that inclusion was a priority. A pre-board meeting orientation gave me a chance to meet the board, understand the organizational structure, and discuss expectations. This simple but intentional step made a world of difference. It set the stage for my active participation by demystifying unspoken norms and fostering a welcoming environment.

Sandford’s commitment to inclusion extended beyond process to addressing practical barriers, such as covering my travel and accommodation expenses, and offering virtual attendance for ad hoc sessions. These gestures showed that true inclusion relies on both structural support and a welcoming environment.

Inclusive Leadership in Action

During my first board meeting, I was struck by how actively I was invited to participate. Observers weren’t just passive bystanders but were explicitly encouraged to ask questions and contribute to discussions. At first, this caught me off guard. Being called on directly was unexpected, but it also gave me the confidence to engage meaningfully.

As an observer, it’s easy to feel hesitant. I initially felt pressure to “prove my value” in the room, worrying about whether my contributions were significant enough. But during my observership, I shifted my mindset. Instead of overthinking how I might appear, I focused on active participation: asking thoughtful questions, sharing observations when relevant, and engaging consistently.

The board created an environment where this approach was encouraged. By fostering openness and valuing input from all voices, they made it easy to ask questions that might have felt awkward or “silly” in other contexts. In one discussion, for example, I raised a question about a regulatory matter that hadn’t been fully considered. This sparked a productive debate, surfaced an overlooked risk, and led to a stronger strategy overall.

These moments reinforced a fundamental truth: value isn’t demonstrated through perfection—it’s built through active and consistent contribution. Sandford’s leadership actively modeled this inclusivity through:

• Engaging all participants, asking open-ended questions, and valuing differing viewpoints.

• Structuring meetings for discussion and decision-making—not just reporting—to unlock meaningful contributions.

• Reducing hierarchical barriers, ensuring everyone, including quieter voices, felt their input was valued.

Diverse Perspectives, Deeper Insights

What stood out most during my observership was how diverse perspectives enriched discussions. The board’s openness encouraged participants to approach challenges from multiple angles and directly improved risk management by uncovering blind spots and identifying strategic opportunities. This wasn’t simply an exercise in courtesy—it was a recognition that a boardroom is most effective when all voices are heard, and contributions are valued. 

This experience reinforced a fundamental truth: culture is shaped by actions, not intentions. Inclusion is often mistaken for mere presence, but my experience reinforced that it’s about creating an environment where every voice is encouraged, welcomed, and valued. At Sandford, I wasn’t just given a seat at the table; I was invited to contribute, learn, and grow. 

“So What?” for Investors and Startups

For Investors: Setting the Tone for Governance

For early-stage investors, participating in a fundraising round often marks the first time a startup has a formal board. If culture truly starts at the top, then as an investor, you are part of building that foundation. The way you lead, engage, and include others will shape how the company and its board operate moving forward. Prioritizing inclusivity not only fosters stronger governance—it aligns with financial performance by creating transparency, mitigating risks, and supporting sustainable growth.

So, bring your A-game and take responsibility for creating a healthy, functioning boardroom culture that aligns with long-term success. This includes: setting clear expectations for participation; inviting meaningful contributions; and ensuring observers are activated to provide fresh perspectives, strategic insights, and accountability. When you prioritize meaningful engagement, you encourage founders - and other directors - to think strategically, rather than viewing the board as just a compliance checkbox or a reporting burden.

For Startups: Unlocking Observer Value

For startups, granting investors director or observer rights is a common practice, but without setting clear expectations for meaningful engagement, valuable contributions are often left untapped. Observers have the potential to bring unique perspectives, strategic advice, and even accountability—but only if they are given the opportunity to contribute. When startups fail to activate this potential, they miss significant opportunities to strengthen decision-making, identify risks, and build collaborative cultures. 

Founders, don’t miss the opportunity to define the role of directors and observers, and set expectations for how they can contribute meaningfully and what actions you’ll take to support engagement. Use their presence as a strategic advantage—not just a formality.

Call to Action: Culture Starts at the Top

A fish rots from the head down, and culture starts at the top. For startups, this means using every resource in your boardroom to its fullest potential, including the contributions of observers. For investors, it’s about leading by example and demonstrating how inclusivity and engagement create the conditions for success. And remember, true inclusion isn’t a one-time effort—it’s an ongoing practice that shapes culture with every interaction!