I was reading a book that referenced a quote from Benjamin Franklin, and I proceeded down the rabbit hole of related Franklin quotes chasing a lesson for CEOs and Boards of Directors. The quote that launched my quest was “Wise men don’t need advice, fools won’t take it.” I triggered on the word ‘need’ in the quote. Some of the wisest people I know are hungry for advice and opinions. They may not ‘need’ advice, but they welcome it. They listen and assimilate ideas as they contemplate a course of action, then they form their own opinion and act decisively.
In the dynamic between a CEO and the board of directors, this aphorism plays out every day. Often, CEOs feel they have to avoid any sign of weakness or uncertainty when interacting with their board. They assume that if they need advice, then they will be judged as suspect, but if they project that they are wise and do not take advice, then they will demonstrate that they are in control. They put on their ‘wise’ face and speak with authority and conviction, while closing the door to good advice. The result is that they are actually acting as the ‘fool’ by not seeking input and help. The ‘wise’ CEO may not need advice, but is open to receiving it.
On the flip side, when the board is repeatedly ignored by the CEO or their input is unwelcome, the Franklin quote excuses the advisors from the infinite loop of trying to rescue the un-rescuable. It provides a foundation for declaring the CEO a ‘fool,’ and creates the permission framework for seeking a change in leadership. Ignoring the board’s input is a treacherous path for a CEO to follow. Some CEOs have such clear vision and conviction that in the face of ‘no’ winging by their ears, they trudge forward to seek the positive outcome they believe is ahead. In this case, they are following another Franklin quote “Well done is better than well said.” However, if the result is not as promised, they have burned the bridge back to the board, and opened the door to the ‘I told you so’ outcome. Better to engage the board and bring them along as willing participants on the journey.
Franklin had two more quotes to guide a board of directors when dealing with a difficult CEO. The first is a corollary to the idea that fools will not take advice; “Telling someone what not to do doesn't work as much as we hope to think.” As in parenting, if they are not listening to the advice, sometimes you have to let them make the mistakes, and hope for the least worst outcome. People will learn more from failures than they will from a lecture about what not to do, and a ‘wise’ CEO will grow from the experience.
When all else fails, the last Franklin quote tends to come into play; “invest effort where it can compound, stop feeding attention to stubbornness.” At some point, the effort is better directed elsewhere. I have seen board members ‘check out’ when their input is being ignored. When the company is doing well, if they become passive observers it may have little effect. But, if the company is struggling, there is a fiduciary responsibility to engage and break through the stubbornness. A critical role for the chair is to ensure that board members remain engaged. If board members check out, they need to be drawn back in or replaced. Never forget that the CEO serves at the pleasure of the board, so rather than checking out, if the board finds the CEO unwilling to engage appropriately, their responsibility is to fix the problem, not ignore it.