By: DeeDee DeMan
In the high-stakes world of biopharma and life sciences, some companies thrive while others shutter unexpectedly. From the outside, both may appear strong, well-funded, fast-moving, and led by seasoned executives. But one critical difference often separates the two: leadership selection rooted in relevance, not relationships.
At Bench International, a global executive search and talent advisory firm with 50 years of industry expertise, we’ve seen that companies positioned for longevity are the ones that make bold, clear-eyed decisions about leadership. These organizations embrace uncomfortable truths and build boards and C-suites with the objectivity of world-class athletes, not familiarity or legacy loyalty.
The Illusion of Strength in Familiar Networks
We see time and again, companies trying to recreate past success by getting the “band back together.” Founders and executives tap friends, former colleagues, or those they trust, assuming what worked before will work again. As markets shift and regulatory and financial pressures intensify, relying on a personal network often becomes a liability, not an asset.
A board or management team built around personal loyalty rather than professional relevance can unintentionally exclude those not in their inner circle. And that exclusion sends a dangerous message that contribution and expertise matters less than personal relationships. Pre-pandemic, the “personal network approach,” was seen as risk indemnification. Post-COVID, with what we now experience in external unprecedented pressures, financial and regulatory obliqueness, if not chaos, this model is no longer viable in today’s New World Order, which requires the athleticism of leaders who are specifically designed to compete and know how to deliver the “gold.”
Healthy Boards Make Harder, Smarter Choices
The hard truth is unhealthy boards make unhealthy companies. No organization can be healthy if its board lacks strategic discipline. Healthy boards embody open debate, never make it personal, and stay laser-focused on the business agenda, not individual egos. The most effective boards pursue a high-level equilibrium of skills, perspectives, and accountability. The healthiest CEOs seek out guidance from their boards and engage in vital, ongoing two-way dialogue to mitigate the surprises that heavily “scripted,” board decks and board presentations often exacerbate. This approach encourages the leadership team to make courageous and objective decisions, enabling leadership teams to continually reflect and act on the question, “What issue do we need to solve?” and, “Do we have the right people in the right roles at this particular time to solve for the issue?”
No executive search firm can guarantee your company will flourish. But here’s what we can guarantee. If you don’t make intentional, informed, objective, leadership choices, in advance of issues becoming major problems, “flourishing,” will be elusive at best. To this end, we offer a road map that helps ensure success and provide the assets themselves are sound. With the right people at the right time, boards and leadership teams will mitigate, “Was it the team or the asset that failed.”
The 10 Habits of Healthy Companies (And 10 Warning Signs You Shouldn’t Ignore)
Healthy Boards = Healthy Companies:
- Hire for relevance, not relationships
- Assess leadership fit for today’s strategy
- Prioritize diverse operational experiences
- Align roles with the company’s stage and funding
- Make decisions rooted in strategic clarity
- Use outside experts to uncover blind spots
- Reevaluate team structure regularly
- Choose capability over comfort
- Treat leadership as infrastructure, not overhead
- Invest early to avoid late-stage leadership pivots
Unhealthy Boards = Unhealthy Companies:
- Hire based on familiarity or comfort
- Assume past success ensures future value
- Avoid direct performance feedback
- Repeat ineffective org structures
- Resist input from independent advisors
- Ignore obvious red flags
- Delay hiring until reactive crisis points
- Build teams tactically, not strategically
- Overlook scale-readiness in leadership
- Dismiss culture mismatches for ease of fit
Case Study: AVROBIO’s Board Rebuild Signals Leadership Maturity
AVROBIO: Rebuilding for Relevance Post-Merger
In 2024, AVROBIO, a clinical-stage gene therapy company, completed a merger with Tectonic Therapeutic, a biotech focused on GPCR-targeted biologics. This merger was more than a financial transaction; it was a strategic pivot. AVROBIO, having paused development of its own gene therapy pipeline following mixed clinical outcomes and a challenging capital environment, sought a path forward that would preserve shareholder value and repurpose its public listing for scientific and commercial growth. Tectonic, in contrast, was a private company with a robust early-stage pipeline but without access to the capital markets.
Together, the companies merged to combine AVROBIO’s public platform and infrastructure with Tectonic’s novel science and leadership, supported by a $130.7 million private placement, which brought the pro forma cash position to an estimated $165 million, expected to fund operations through mid-2027.
Critically, AVROBIO did not treat the merger as a simple blending of teams. Instead, the company demonstrated rare discipline by fully reconstituting its board of directors. Seven AVROBIO board members: Gail Farfel, Christopher Paige, Philip Vickers, Ian Clark, Annalisa Jenkins, and Bruce Booth resigned immediately before the merger, as reported in the company’s Form 8-K filing summary. In their place, a new, independent board was appointed, one designed to reflect the needs of the combined company’s new direction rather than honor legacy relationships.
The restructured board brought together seasoned biotech executives, clinicians, and financial experts aligned with Tectonic’s next-phase strategy. Importantly, a majority of directors met Nasdaq’s definition of independence, signaling a strong commitment to governance and accountability. This wasn’t just a swap of names. It was a deliberate reset of board culture, behavior, and oversight to support long-term value creation.
The company also restructured key committees: audit, compensation, nominating, and governance, ensuring those with relevant expertise were in positions to guide critical decisions. These moves reflected not only a fresh start but a strategic re-anchoring of leadership in the company’s scientific and financial future.
AVROBIO’s actions embody what we call a “healthy board reflex”: the ability to make difficult but necessary leadership decisions in service of long-term goals. By prioritizing relevance over legacy, the company has positioned itself to navigate a new chapter with clarity, capability, and credibility.
From Subjectivity to Strategy
There’s nothing wrong with wanting to work with people you trust. But trust without relevance is no longer a safe bet. Today’s investors and employees expect accountability, objectivity, and readiness.
The most resilient companies build leadership from a position of clarity. They ask:
- Where are we now?
- What are the challenges ahead?
- Who is the best person for this moment?
The answers aren’t always comfortable. But they are what separates companies that thrive from those that don’t.
About the Author: DeeDee DeMan
DeeDee DeMan is the Founder, Chairman, and CEO of Bench International, the longest-serving woman-founded executive search firm in the life sciences and healthcare industries. With five decades of experience advising boards and C-suites, DeeDee is a pioneering force in shaping leadership strategy for some of the industry’s most transformative companies. Her passion lies in helping businesses move beyond comfort to build leadership that delivers impact, resilience, and measurable outcomes.
Sources
- Form 8-K/A, AVROBIO, U.S. Securities and Exchange Commission, filed June 14, 2024.
- Tectonic Therapeutic Announces Closing of Merger with AVROBIO, June 20, 2024
- Form 8-K Summary, StreetInsider summary of SEC filing, June 20, 2024.
