The relationship between the CEO and board members sets the tone for leadership and governance of the entire company. Cultivating strong, collaborative relationships between the CEO and directors requires intention, open communication, and clearly defined roles.
Here are some tips for developing effective CEO-board dynamics.
Establish Open Communication
When managing a board of directors, open, transparent communication between the CEO and board is foundational. The CEO should provide regular operational updates and promptly inform directors of major developments. For their part, directors should ask thoughtful questions and offer guidance, not directives.
Schedule one-on-one meetings between new CEOs and directors, so they can get to know one another. Dedicate time during board meetings for directors to connect with the CEO about goals and challenges. Outside of meetings, the CEO should be accessible to directors for advice.
Align on Vision and Strategy
The CEO looks to the board for guidance on vision and strategy. Schedule an annual strategic planning session with the CEO and directors to discuss mission, competitive landscape, opportunities, and threats. Ensure all voices are heard during these conversations.
The CEO then takes the strategy outlined by the board and executes on it operationally. As conditions evolve, the CEO should communicate with the board on needed strategy pivots.
Respect the Roles
The CEO manages day-to-day operations, while the board oversees governance and strategic direction. Respecting these complementary roles is vital. The board should empower the CEO to lead the company and avoid overstepping into management. Meanwhile, the CEO should value the board’s oversight and guidance.
Cultivate Camaraderie
Strengthen relationships by having the CEO and directors connect in informal settings outside of the boardroom.
For example, set up dinners before board meetings for casual conversations in a relaxed atmosphere. Or organize a board retreat focused on building camaraderie through team building activities and discussions unrelated to business. Activities could include sports, games, or sharing hobbies and personal stories.
Getting to know each other personally in purely social settings helps CEOs and board members develop trust, familiarity, and rapport that allows them to communicate more openly as a team. However, ensure directors still maintain enough independence from management and avoid conflicts of interest.
Solicit Feedback
The CEO should regularly ask board members for feedback on his or her leadership and performance. Directors can provide valuable input on the CEO’s strengths, growth areas, and how the board experience could be enhanced.
Here are some examples of how CEOs can solicit honest feedback effectively from their board of directors:
- Schedule one-on-one meetings with each board member to get their unfiltered perspective on the CEO’s leadership strengths and areas for improvement. Make it a safe space for candid discussion.
- Use an anonymous survey completed by each director to get feedback on the CEO’s strategy execution, communication, relationship building, etc. Aggregate the data to protect anonymity.
- During board self-evaluations, include questions evaluating the CEO’s performance and relationship with the board. Discuss the compiled results with the CEO.
- Appoint a lead independent director to collect confidential feedback about the CEO from the wider board and synthesize key themes to share during a formal performance review.
- Engage an external advisor to interview board members and the CEO to identify friction points and growth areas. They can provide unbiased perspective.
- Hold a board executive session without the CEO present at least annually to discuss the CEO’s performance. The chairperson can then summarize the conversation for the CEO.
- At the end of each board meeting, include time for directors to provide brief verbal feedback on the CEO’s leadership during the meeting.
The key is creating a psychologically safe environment for board members to share constructive criticism without fear of repercussions. The CEO should demonstrate a learning mindset by actively listening and implementing suggested improvements.
To receive honest constructive feedback, the CEO must actively listen, show gratitude and humility, and avoid being defensive. This feedback process improves self-awareness for the CEO and builds mutual understanding.
Building collaborative CEO-board relationships requires intention and work but it can pay dividends for the governance and success of the organization.
Maintaining open communication, aligning on strategy, respecting roles, building camaraderie, and giving feedback are key elements of a strong partnership between the CEO and board of directors.
