Reduce Burn and Have More Runway

C.U.B.E. for Conflict

To learn more about CUBE and how to use, please view the CUBE Overview

Best Practices for Reduce Burn and Have More Runway

  • Clarify the goal of the conversation: “I’d like to discuss the current burn rate and pros & cons of reducing burn and increasing runway.”
  • Clarify that it’s their decision and the board’s role: “Ultimately, this is your decision, but I think it’s in the best interests of everyone to discuss it with the board and get their buy-in.”
  • If you have a bias, name it: “I personally think we should reduce burn AND I’m open to discussing many scenarios and support you in making the decision and getting the board behind it.”
  • Be soft on the person and hard on the problem. If they have reasons for a specific burn or don’t want to do scenario or planning, listen to those and have empathy, but also challenge them around what’s best for the company. If this is a real sticking point, focus on understanding them and brainstorming options for how to do the planning.
  • Ensure the right people are included in the decision process: “Who else in the company should be included in this decision or at least consulted at some point before a decision is made?

C

REATE CONTEXT & OBJECTIVES

NDERSTAND EACH OTHER’S WORLDS… THEIR WORLD FIRST

U

  • Get objective facts and avoid conceptual discussions or generalizations, e.g. the faster we go, the less efficient we’ll be.
  • Be curious about how they are thinking about it and what they’ve already done. Try to understand their perspective, priorities, and feelings.
  • Paraphrase to ensure you heard correctly and demonstrate understanding.
  • Share your interests and priorities, e.g. maximizing the value of the company and why you think we need to look at different scenarios and assess them.
  • Before looking at specific scenarios, remind them that they are the ultimate decision-maker.
  • Get their buy-in to build different scenarios and to look at the issue.

B

RAINSTORM OPTIONS

  • Set a mood of creativity: Clarify you are brainstorming, not decision-making.
  • Bring structure to the conversation and potentially create different scenarios, e.g. Leave as is (and manage some people out), small reduction, big reduction. At some point, you have to start thinking about specific names/teams to ensure the scenarios are real.
  • Consider having notes for each scenario that include: metrics achieved, date of fundraising, note on the round, etc. (See empty chart)
  • Expand ideas: Do not narrow into one solution.
  • Capture critiques as pros & cons.

E

ND WITH COMMITMENTS

  • Be clear about confidentiality. Who is being included in the planning process and when? Have a google sheet that is updated regularly about who is in the know.
  • Clarify communication preferences to protect confidentiality, e.g. text, email, signal.
  • Decide and commit to clear next steps (who is doing what by when).
  • Setup a check-in, milestone or next conversation.
  • Write an email to summarize the decisions and commitments that were made.

Common Mistakes for Reduce Burn and Have More Runway

  • Trying to get to agreement too quickly (1 step forward, 2 steps back).
  • Being too nice and not naming the real intent of the conversation.
  • Unilateral moves including setting up an agenda without a discussion.
  • Having the conversation in the wrong circumstances.
  • Underestimating the importance of mood, e.g. moving forward before cleaning up trust issues.

C

U

REATE CONTEXT & OBJECTIVES

NDERSTAND EACH OTHER’S WORLDS… THEIR WORLD FIRST

  • Expecting to be heard before hearing the other person.
  • Solving problems based on solidified positions rather than underlying interests.
  • Believing you understand what’s important to them without confirming 
  • your assumptions.
  • Not empathizing with their perspective, especially when you disagree.
  • Not explicitly sharing your interests and priorities.

B

RAINSTORM OPTIONS

  • Focusing on the first solution that seems the best rather than fully exploring possibilities.
  • Judging, critiquing or ignoring ideas while brainstorming. Not gently correcting when others critique or judge.
  • Throwing out ideas without caveating that you are just exploring.

E

ND WITH COMMITMENTS

  • Walking away with two different ideas of next steps.
  • Accepting unrealistic commitments or withholding concerns.
  • Thinking too big rather than just focusing on the next step.
  • Not personally thanking people for what worked in the conversation.

How did you do with having this conversation?

View the Post-Conversation Self Assessment.

View the Cube Prep Sheet in Google Doc.