The Changing Board Relationship with Senior Management
Essential Elements of an Effective CEO-Board Relationship builds on the ongoing work of our global CEO and Board Services practice in. By Stuart R. Levine Published in, The Credit Union Times. The relationship between boards and senior management is changing. Boards'. The relationship between the board of directors and the management cannot be described as just being that of a relationship between an employee and his or.
Chief executive officers report to boards, not to chairs.
Managing The Board – 10 Things Every CEO Should Know
But the chair can, and should, guide the CEO on matters of board concern and should warn the CEO if trouble is likely to arise. It requires clarity of mutual expectations and regular communication. The frequency and form should be discussed and negotiated by the chair and the CEO.
Focus on common goals and accept the fact this is simply the way the other person operates and the issue is not personal.
Even if they have personality types that put them at odds with each other, this does not mean they cannot establish a good working relationship.
The key is to establish trust. Trust is a two-way street — to develop and maintain trust on both sides: Things are what they are, so tell it as it is Be forthcoming. Deliver bad news as well as good news Communicate frequently. The CEO facilitates informal introductions between members of the board and members of the management team.
To facilitate succession planning, the CEO frequently brings members of the management team to board meetings, where managers play a substantive role. The CEO encourages board members to advise key managers on issues tied to their specific areas of expertise. Fully commits to the idea of an independent board: The CEO is fully committed to the concept of an independent chairman and board.
The CEO partners with the chairman to strengthen the board. The CEO works to avoid the development of board factions.
The Relationship between the Board of Directors and the Management
Balances strong points of view with openmindedness and flexibility: The CEO effectively challenges the assumptions of board members. Recognizes the power of complementary skills on the board: Directors advise on the substance of strategic decisions.
Directors provide thoughtful, actionable guidance on how to effectively translate strategy into action. Directors maintain an open-door policy for the CEO to seek guidance.
Directors ask probing, penetrating questions on the logic of strategic decisions and the dynamics of organizational performance. Directors consistently demonstrate the courage to ask tough questions. Directors maintain a deep commitment to the performance of the organization, and this commitment clearly is reflected in their level of engagement on issues of critical importance to the performance of the firm.
Directors bring a spirit of energetic teamwork to all interactions with the CEO. Shared Relationship Responsibilities Commits to act in best interests of the firm: All parties recognize and embrace their obligation to work in the best interests of the firm. Builds close but independent relationships: All parties set distinct expectations for themselves and for each other.
All parties establish clear objectives.
Suggestions to Enhance Working Relationship Between Board Chair and Chief Executive
All parties keep their promises. Establishes distinct roles and responsibilities: All parties maintain clearly defined and communicated roles and responsibilities. All parties are completely knowledgeable about their own responsibilities and the responsibilities of their counterparts. All parties bring a genuine level of intellectual and professional humility to each interaction. All parties are self-aware of their strengths, weaknesses and limitations.
All parties are comfortable with having their ideas rigorously challenged. Demonstrates honesty, trust, respect and transparency: All parties work to establish relationships characterized by the highest standards of honesty, trustworthiness, respect and transparency. All parties work to create an environment characterized by mutual respect.
- Essential Elements of an Effective CEO-Board Relationship
- The Relationship between the Board of Directors and the Management