My last post explored the characteristics of what makes a great board of directors (BOD) and board member, from the CEO’s perspective. I also provided a game plan for how to fix a broken relationship with the BOD. However, there are two sides to every relationship, and as a board member, there are CEO attributes that can make all the difference in building a positive working relationship, so in this post I turn the table and take the board’s view of what makes a great relationship with a CEO.
Great execution and business results clearly go a long way to smoothing over any relationship issues between the BOD and the CEO. Every board member appreciates results without drama, but things do not always go as planned, and when the going gets tough is when the cracks in the relationship typically surface. From my own personal experience, and feedback from other board members, here are a few of the key attributes that shape a positive view of the CEO:
Honesty tops everyone’s list. The board has to be confident that whatever the CEO reports is in fact true. There are no “small” lies.
Openness and candor run close second. The board has to be confident that the CEO is providing a clear-eyed factual representation of the business. This is a little bit different from honesty. A CEO can be honest, but not completely open or share the full story. This is about omissions that shade the message. If the board is going to be helpful, they need to know all there is to know about a topic and not feel the CEO is holding back.
Problem solving and decisiveness. The CEO is the person running the business, and they need to take charge. The board wants to be confident that the CEO has solid reasoning skills and will make tough decisions in a timely manner. When a crisis occurs, the CEO needs to be decisive and not frozen like a deer in the headlights.
Leadership and gravitas. The BOD values a CEO that acts the part and has the support of their team. It is evident when an executive team is working well, or when it is dysfunctional. The BOD counts on the CEO to ensure the leadership team is aligned.
Stable. The world and most markets can be chaotic at times. The BOD wants a CEO who is not creating more chaos. We want a steady hand guiding the business forward.
Firm grasp of the business. The BOD will never be as close to the business as the CEO, and we rely upon the CEO to be on top of everything that is going on in the business. The CEO does not have to precisely know every number and metric and detail, but we at least expect them to have a complete understanding of the state of the business, and to surround themselves with a team of experts who will know every detail.
Accessible and patient. Board members want to be able to reach the CEO easily, and feel as though the CEO places a high priority on being available to interact with board members. Forming a solid relationship takes more than just quarterly board meetings. Often the call is just to catch up and hear what is going on, but the patience part of this attribute is also important. Board members do not always know or understand the nuances underlying parts of the business. The CEO has to be patient and recognize that part of their job is to educate and explain things to board members and help them to understand the drivers behind various challenges and decisions.
The aggregate of these attributes is a reflection of character, but the bottom line from all of it is trust. Board members want a CEO they can trust to ‘do the the right things’ and ‘do things right.’ Trust is hard to earn and easy to lose. Because the board is not involved in the business every day, we need to trust that the CEO has it under control. We also need to trust that when they need help they are confident enough to ask for it, and that they understand the scope of their authority so that when they cross into a realm where the board needs to be involved, they do not hesitate to call for help.