Your relationship with the board is one of the most important for your success, but many new CEOs get off to a slow start with the board. You likely have presented to your company’s board and spent time with directors before becoming CEO, but working with the board on strategy, compensation and benefits, audit, compliance, risk — the fiduciary responsibilities that a public company board has — is very different.
What experienced CEOs have learned
Many new CEOs assume the status quo for the relationship with the board. But as a new CEO, don’t miss the opportunity to re-set with the board on processes, communication and composition for the board.
Early on, ask directors what they think what worked well and what they’d like to see changed. One CEO continued the practice of providing a 200-plus page deck before board meetings for two years before learning that the board would prefer a much more focused 30-page deck. Strive to consciously refresh the board experience for the directors so that it is more fun and more stimulating to serve on the board than before.
Similarly, use the early days in the role to begin driving an approach to board succession based on the direction of the business.
A nuance that some new CEOs miss is that the board is not just your boss. Great boards help you succeed, but they won’t if you don’t ask them. They’ll read their board book, go to the meeting, try to be constructive in the meeting and go home. But if you ask a director to help think through a thorny issue or introduce you to somebody or get involved with the tech or marketing team, directors are typically delighted to help in a more substantive way. It’s a huge opportunity that’s frequently missed.
Set up one-on-one meetings with directors as part of your transition plan, and continue the discipline of meeting or speaking with directors before important board meetings — when topics such as acquisitions, new products and services, or large capital investments are going to be discussed.
Understand the stated and unstated motivations of your board. It’s not just about building shareholder value, directors also are concerned about their reputations and schedules.
Create forums for key management team members to interact with the board. This increases their ability to help assess and support strategy and perform the board’s most important function: ensuring optimal succession.
Aligning with the Board: Checklist
Before You Start
- Debrief with succession advisers to gain insights about director perspectives, board dynamics and expectations that emerged during the selection process.
- Ask if a board effectiveness assessment has been conducted recently and if you can review all or key parts of it.
- If you are a first-time CEO, ensure you are knowledgeable about fundamentals of board governance.
First 100 Days
- Schedule one-on-one conversations with board members to understand the stated and unstated motivations of the board, and their perspectives on challenges and opportunities for the company.
- Share thoughts on leadership team challenges with the board chair/lead director and any emerging themes from your reviews to date that you may want to test.
- Establish an effective communications protocol. Tailor your communication and management style to the needs of the board.
- Schedule a formal board session to share your first-100-days observations and updates on your game plan.
Day 101 and Beyond
- Consider whether and when a board effectiveness assessment could be valuable.
- Encourage the board to think about its long-term board succession plan.
Additional Resources
Spencer Stuart Insights
