February 26, 2008
Powerful Questions
"How can the nonprofit Board Chair and the CEO work together productively?"
The relationship between the nonprofit Board Chair and the CEO is arguably the most important relationship in the organization. There have been many instances, both public and anecdotal, where this relationship has broken down, usually with either the CEO resigning (literally or “euphemistically”), or the Chair resigning or not being re-elected. Our experience is usually the CEO suffers the fallout. In turn, this whole issue can be debilitating for the organization, its reputation, and the loss of focus at a strategic and operational level.As both a Board Chair and also as a CEO, I have found the best advice given to me was by Bob Joss, CEO of Westpac Bank and Chair of my Board of the Australasian Institute of Banking and Finance, now Dean at Stanford University. When asked what the relationship should be between the Chair and CEO (he was Chair, I was CEO), he replied "It really is very easy, Steve. It is a relationship with only one rule…No surprises……because that will only ever happen once."
This translates into four pieces of very practical advice.
1. Questions to ask
Ensure when the Chair first takes the position, that you as CEO and the Chair have a discussion about how it would best work for both of you. Be willing, as the CEO, to ask questions of the Chair regarding their personal expectations of the position.
Some questions to ask of the new Chair might include:
• What do you require from this position as Chair?
• What does the Chair position require of you as a person?
• What do you require from me as CEO?
• From your point of view as a Chair, what do I as CEO require of you as Chair?
All these questions should be addressed by the Chair. These questions facilitate the Chair to perceive the responsibilities and possibilities of the Chair position from various points of view.
2. Surprises
Ensure the Chair is the one you first go to with any potential "surprises". This might be in the form of a call from the media, a potential issue with constituents or a change in strategic assumptions.
3. Board agenda briefings
Ensure you brief the Chair on any potential surprises and issues in the agenda of each Board meeting, prior to the meeting. It is usually the CEO or company secretary that develops the agenda, but it should be the Chairman who signs off on the agenda, and it should go out under the Chairs signature. In the end, it is the Chairs responsibility. You should also advise the Chair of any potential conflicts of interest likely to arise during the Board meeting, and options for dealing with them. For those Chairs that are not used to dealing with conflict of interest, I have provided a useful checklist that might prove useful for the first three or four meetings, until the Chair is comfortable delaing with these types of issues.
The Conflict of Interest checklist can be found here >>>>
4. Governance subcommittee
Develop a Governance (or CEO/Board Evaluation) subcommittee of the Board. It is common for the Chair to be on this subcommittee, and quite often they Chair this subcommittee as well. This subcommittee is responsible for both the Board and CEO succession planning, performance management, and evaluation. One of the most common reasons CEOs lose their job is when they have a disagreement (which they may not even be fully aware of)with the Board Chairman, or lose the confidence of the Board. This Board subcommittee is primarily charged with dealing with these issues. These responsibilities should not be vested in the Chair alone.
An example of a Sample Charter for this subcommittee of the Board can be found here >>>>
A short article on Succession Planning for the CEO position, one of the key responsibilities of the Governance subcommittee
can be found here >>>>
Click here >>>>
to download a short audio .mp3 program on how the conscious CEO can further improve their relationship with the Chair (2.65Mb, .mp3). This can be used as part of the induction program for new Board members, and for new Chairs.
What's new?
"Strategic Risk Management: Risk as Strategic Advantage for Nonprofit Leaders"
This Chief Executive Quick Guide has been formulated to provide leading edge perspectives and techniques on topics particularly relevant to chief executives of nonprofit organizations around the world. This Quick Guide has been tested in the real world of nonprofit Board rooms and senior leadership teams, and is designed to provide points of view on key areas of chief executive responsibilities in terms of risk management. Only US$45.00, this Quick Guide is available as a downloadable e-book immediately.
Click here for more information and to order >>>>
"The Conscious Chief Executive-Leading Your Nonprofit Organization to Success from Awareness"
This book is based on the awareness that all nonprofit organizations have unlimited potential and possibility to become successful and thriving if they are led by conscious leaders. This book shows what it would take for chief executives to become conscious leaders and to embody and be the greatness of who they truly are. It provides chief executives of nonprofit organizations a practical conscious leadership "toolbox" of strategies. Only US$35.00, this is available as a downloadable e-book immediately.
Click here for more information and to order >>>>
"Advanced Strategic Planning-Strategic Planning that works for nonprofit Boards and Leaders"
What would it take for your strategic plan to be truly strategic? Do you want to know how to embed the strategic plan into all facets of your organization and get amazing buy-in from Board, staff and stakeholders? Do you want a process that is quick, focused and provides step-by-step guidelines that result in a strategic plan that is accountable and measurable? Only US$45.00, this Quick Guide is available as a downloadable e-book immediately.
Click here for more information and to order >>>>
Who else would find this useful? Forward this e-zine
Know somebody who'd like to read this?
We really hope that you've enjoyed reading this e-zine. If you think your colleagues might be interested in taking a look, please feel free to forward it to them.
Haven't subscribed yet?
If you're reading this on the recommendation of a friend and would like to receive all the future editions, you can subscribe for free by clicking on the following link.
Subscribe to FREE e-zine
Previous Issues Topics
Issue #001 -- When Board members step over the line
Click here for links to back issues >>>>
Next Issue Topic
Next issue will focus on the question of the powers of members vs the powers of the nonprofit Board at the AGM. This topic has even some of the legal experts baffled, but is actually very simple both legally and in terms of governance. The issue of member resolutions wiil be discussed, as will what is required to be discussed at the AGM. This will be a must read for any nonprofit organization that has had "interesting" experiences at their AGM, and for any Board member or CEO who is involved in AGMs.
(Mind you, I might change the topic if something even more topical comes in. Let me know what you would like to see!)
Please send us any of your feedback, or any questions that you might like to see in the e-zine. All communications are confidential.
Happy reading
Steven Bowman
Contact Us
Email usConscious Governance website
Conscious Chief Executives website
Physical address: 17 Gordon Grove, Malvern Australia 3144