Tip #52 Three Keys to a Successful Board-CEO Partnership
In this Tip for Effective Boards, we will focus on the first three of the Ten Keys to a Successful Board-CEO Partnership identified in last month’s Tip for Effective Boards.
Clarify Roles and Relationship. Be clear about the purpose of a governing board. I like the description of the board’s purpose as directing and protecting the organization on behalf of the organization’s key stakeholders. Differentiate clearly between the role of the board as governing and the role of the CEO as managing. Recognize that the board is not advisory to the CEO but that the board directs the CEO and holds him or her accountable for meeting the board’s expectations.
Embrace the Board Group Authority Principle. How many bosses does the CEO have? Each board member is not a boss. No board committee is a boss. Neither is the board chair a boss. The CEO has one boss – the board as a whole when it acts formally as a body. Therefore, individual board members recognize that they are to work out their differing perspectives and opinions among themselves and decide upon one set of directions for the CEO.
Respect the Integrity of the CEO Position. The board delegates to the CEO authority to manage the organization and holds the CEO accountable for the performance of the whole organization. Individual board members and the board as a whole recognize this delegation of authority and respect the integrity of the CEO position. Accordingly, individual board members, board committees, and the board as whole do not provide any directives to staff (other than the CEO). It is understood that bypassing the CEO to provide directives to staff undercuts the CEO’s authority and undermines CEO accountability to the board.
In next month’s Tip for Effective Boards we’ll continue with our review of the Ten Keys to a Successful Board-CEO Partnership and focus on keys four, five and six.
For reference, the Ten Keys to a Successful Board-CEO Partnership follow:
- Clarify roles and relationship.
- Embrace the board group authority principle.
- Respect the integrity of the CEO position.
- Clarify the scope of the CEO’s delegated authority and range of discretion.
- Specify the board’s expectations of the CEO.
- Evaluate the CEO against board expectations.
- Provide support to the board.
- Engage in trust-building behaviors.
- Provide fair and competitive compensation for the CEO.
- Be a learning organization.
I will be happy to customize a workshop for your board on building and maintaining a successful Board-CEO partnership. Such a workshop may be particularly helpful when transitioning to a new CEO or when board and CEO would like to enhance their relationship. If you would like more information, please respond to this email or contact me via jpbohley@gmail.com.
Please take the time to check out the Policy Governance® model. It provides a comprehensive board governance design that provides a sound basis for a successful Board-CEO partnership. For more information about the Policy Governance® model please click https://www.BoardsOnCourse.com/policy-governance or contact me at jpbohley@gmail.com.