NPD2 The Board and Management Relationship
The relationship between the board of directors and the management cannot be described as just being that of a relationship between an employee and his or. Cooperative material - Board and Management Relationship. This Chapter seeks to analyse the relationship between the Boards and Management of animal protection societies, identify some common pitfalls and suggest.
Reporting to a committee of people is very different from having a single person as a boss. Managing this relationship is a great test, especially for CEOs with little experience working with boards.
Here is a cheat sheet. Choose board members wisely. CEOs don't often get to choose their board members. When they do, it's important to be selective and handle the process as seriously as hiring an executive. Here's what CEOs should look for in their board members.
Essential Elements of an Effective CEO-Board Relationship | Russell Reynolds Associates
People with CEO experience. Only someone who has been a CEO can understand all the issues and challenges that are inherent in the role. One trend with boards is to have people with more functional expertise.
A board that consists of mostly subject matter experts--e. This is dangerous and undermines the CEO's credibility.
While having a board composed of former CEOs is valuable, they don't all have to have the same background. Most CEOs come from a functional area of business and have special expertise. CEOs should consider the company's needs before filling a board seat.
The board needs to get along well with each other, the CEO, and the executive team. They don't have to agree with each other--in fact it's productive when they don't--but they have to respect each other.
NPD2 - The Board and Management Relationship
It's critical to understand why a candidate wants to join the board. Some big investors think they should have a say in how the company is run. This rarely turns out well, because they don't often have the right experience to provide value to the entrepreneur.
- Board/Management Relationship
- The Relationship between the Board of Directors and the Management
It requires clarity of mutual expectations and regular communication. The frequency and form should be discussed and negotiated by the chair and the CEO. Focus on common goals and accept the fact this is simply the way the other person operates and the issue is not personal.
Even if they have personality types that put them at odds with each other, this does not mean they cannot establish a good working relationship.
The key is to establish trust. Trust is a two-way street — to develop and maintain trust on both sides: Things are what they are, so tell it as it is Be forthcoming.
Essential Elements of an Effective CEO-Board Relationship
Deliver bad news as well as good news Communicate frequently. Frequent contacts should be a high priority Socialise. The ultimate outcome of a situation in which the chair and CEO cannot establish professional working relations, because they simply do not get along, should be either the removal of the CEO or resignation of the chair for the benefit of the organisation.