5 Ways CEOs and Boards Can Work More Effectively Together

Leveraging the diverse experience of the board not only can guide implementation of your long-term growth strategies, but also can enhance yours and your team’s leadership skills.

GettyImages-488852081-compressorWhile running a company, there is a constant need to satisfy many different stakeholders. One of those key stakeholders is the board of directors. While some may perceive their boards as always challenging and never satisfied, leveraging the diverse experience of the board not only can guide implementation of your long-term growth strategies, but also can enhance yours and your team’s leadership skills. Here are 5 ways to create positive relationships with the board so you and your executives can effectively execute goals.

1. Understand boundaries and define roles. The best board operates under the philosophy that they are not in charge of day-to-day execution, but are advisors with valuable big-picture expertise. Boards need to trust the CEO to make smart decisions under their guidance, even if the advice is not always followed. When Boards do not govern, but start to micromanage, conflict is created.

“The best board operates under the philosophy that they are not in charge of day-to-day execution, but are advisors with valuable big-picture expertise.

2. Use Your board of directors as a sounding board. Adam Epstein writes in The Perfect Corporate Board: “The vast majority of small-cap directors are not only intelligent, successful, and dedicated, but they also spend considerable amounts of time for not a lot of money trying to do their best to advance shareholder value.” Therefore, executives need to surround themselves with advisors who bring expertise where the executive has gaps or low bandwidth. I have found that consulting with a well-assembled, diverse board can decrease the need for outside vendors/consultants who may not have the company’s interests as their number-one priority.

3. Make use of their Rolodex. CEOs want to grow their business. Who better to call upon than the board of directors? Know who to go to on your board for advice and make use of them! The Alexium board has been instrumental in generating new business leads that have resulted in new revenue streams and verticals for the company.

4. Corporations are dynamic entities requiring boards with flexibility, skill and open minds. Faced with new challenges daily, CEOs have a fiduciary responsibility to work with their board for the benefit of shareholders. Keeping in mind that CEOs manage dynamic organizations, today’s priorities may differ significantly from tomorrow’s. Plan ahead for success and failure, and make sure the board has the flexibility and skills to adapt. As your company grows, you may need additional board members to fulfill different requirements, including listing on national exchanges.

5. Maintain a close relationship between the chairman and CEO. Many chairman act as a mentor and coach, helping CEOs improve their overall management style. They should also respect a CEO’s autonomy to make good choices and run an effective business. An effective relationship between the chairman and CEO builds an effective and progressive company. Without that, companies are stalled by progress and riddled with overly political complications.

Overall, boards should be regularly evaluated to ensure they are optimally positioned to bring your company future forward for the long-term.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.