LEADERS IN EXECUTIVE COACHING
19 October 2006
Turning the spotlight on Chairmen
At long last, after years of hyping CEOs as the masters – rarely mistresses – of the corporate universe, commentators (e.g. Dan Sabbagh, The Times, October 13th ) are turning their attention to Chairmen. About time too!
The power of any CEO lasts for only as long as key stakeholders want it to. And while it lasts, it is hedged about by the need to make the deals and compromises required to gain sufficient support to carry out their agenda. A lot of effort is spent keeping other people sweet.
Chairmen reside in an altogether higher plane and usually enjoy a longer shelf life. Their job is to bring perspective to the Board, run it well and act as wise counsel to the CEO. Their central objective is to run the Board in such as way as to ensure the company thrives. If a crisis arises, their role is to stand above the fray whilst ensuring it is resolved. Sometimes that resolution involves dispensing with the CEO. Yet this remedy is often a tacit admission that the Chairman himself is not up to the mark.
In our work with directors, we hear many stories about how Boards operate. Some Chairmen clearly cover all the core bases with distinction. They run agendas that are central to the organisation and its future. They facilitate open discussion and debate, drawing contributions from around the table. They bring these discussions to a succinct conclusion. They give a lead when appropriate. They have a genuine interest in the business and the environments in which it operates. They sustain and nourish networks through which they can pick up early signs of issues that could affect the company’s reputation. They systematically review the performance of their Board and the individual directors who sit on it. They have an open, high added-value relationship with the CEO.
Mostly, though, it is clear that such Chairmen are exceptional. Few score well against all items on the scorecard. Crucially, few have the skills to adapt their contribution to fit the talents of a new or fast-developing CEO. They carry on doing what they have always done. Those Chairmen who cannot, or will not, adapt their way of working so as to add most value to the CEO risk not only losing the Board’s most senior executive but also the corporate plot.
