A checklist for boards in the new normal
A survey of 266 chairs, directors and CEOs in 23 countries between May and June found that the pandemic had cemented some long-existing best practices and also birthed a few innovative approaches.
Survey analysis revealed the five factors critical for board effectiveness: purpose, people, process, stakeholder relationships and chair.
This article explains the analysis in detail and provides a checklist for better boards in the new normal.
The critical relationship between the chair and the CEO
An effective relationship with the CEO is the one element critical to a successful Chairmanship.
How to build and develop a good professional working relationship over time? The answer is through a clear understanding of respective roles and obligations. That understanding should be based on a number of guiding principles, as follows:
- The two roles must be complementary and described in well-defined, terms.
- The chair and the CEO must each ensure that they are appropriately informed of the other’s current areas of activities.
- The chair and the CEO must be seen to work closely together as a team.
- The relationship must be frank and open, with problem areas being addressed early. It is vital that the CEO can share ideas and concerns with the chair.
Ten CEO succession planning mistakes to avoid
McDonald’s former chairman Andrew McKenna once said: “CEO succession is the number one job of the board.” This article examines ten CEO succession planning mistakes, along with advice on how to avoid them.
- Thinking “if,” not “when”
- Not knowing who’s doing what
- Not establishing a CEO succession-planning function
- Unclear CEO selection criteria
- Setting it and forgetting it
- Excluding the current CEO
- Neglecting the CEO succession plan pipeline
- Going it alone
- Straying from criteria
- Rushing it