In this Tip for Effective Boards, we will focus on the seventh, eighth, ninth, and tenth of the Ten Keys to a Successful Board-CEO Partnership. 

Provide Support to the Board.  It is important that organizational leadership ensures that the board has adequate clerical and logistics support (communications, scheduling of meetings, drafting of minutes, adequate meeting space, etc.).  It is important that the board be supported in seeking information not only from the CEO and staff but from other sources as well.  The board’s seeking of information independent of the CEO and staff should be seen as consistent with its governing role and not misinterpreted as mistrust of the CEO.  It can be very helpful if the board articulates its expectations for the CEO regarding the support it needs.  This can be done by developing a board policy such as a typical board policy in the Policy Governance® model entitled “Communication and Support to the Board.”  For information about the Policy Governance® model, please click https://www.BoardsOnCourse.com/policy-governance.

Engage in Trust-Building Behaviors.  Ongoing, honest, respectful, two-way communication is critical to building and maintaining trust in the Board-CEO partnership.  Honest communication involves sharing the bad news as well as the good news.  Board and CEO both following up and doing what they say they will do goes a long way in affirming trust.  Finally, regularly expressing appreciation for one another reinforces trust.

Provide Fair and Competitive Compensation for the CEO.  Assure competitive compensation for the CEO through acquiring comparative compensation information for similar positions.  Such information can often be acquired through salary surveys available from professional associations or human resource organizations or through direct contacts with similar organizations.  In addition, compensation decisions are more likely to be perceived as fair by the CEO if they are tied to performance expectations that have been clearly defined and communicated to the CEO by the board ideally prior to or at the beginning of the period of time to be covered by the evaluation of the CEO.  Limit the evaluation to such clearly defined and communicated expectations.  Finally, if the CEO is provided ongoing feedback about his or her performance against defined expectations throughout the year, there will be no unwelcome surprises at evaluation time.  The organizational performance monitoring system used in the Policy Governance® model provides an efficient and effective mechanism for such ongoing monitoring.  For information about the Policy Governance® model, please click https://www.BoardsOnCourse.com/policy-governance.

Be a Learning Organization.  Being a learning organization involves a commitment to supporting the continued development of the CEO and also supporting the continued development of board members and the board as a whole.  Make this commitment real by providing funding in the annual budget.  In supporting the CEO allow the CEO to be self-directing in his or her professional development.  A caution here is that evaluation of the CEO should focus on whether or not board-determined results are achieved and board-determined operational expectations are met and should not focus on whether or not the CEO engages in professional development activities.  With respect to board development provide support for individual board members to pursue professional development (especially, board members preparing to assume board leadership roles) and provide opportunities for the board as a whole to receive educational opportunities, especially those assisting the board in its ongoing role of defining and redefining organizational purpose and priorities.

For reference, the Ten Keys to a Successful Board-CEO Partnership follow: 

1. Clarify roles and relationship.
2. Embrace the board group authority principle.
3. Respect the integrity of the CEO position.
4. Clarify the scope of the CEO’s delegated authority and range of discretion.
5. Specify the board’s expectations of the CEO.
6. Evaluate the CEO against board expectations.
7. Provide support to the board.
8. Engage in trust-building behaviors.
9. Provide fair and competitive compensation for the CEO.
10. Be a learning organization.

If you wish to review all of the Ten Keys to a Successful Board-CEO Partnership, they are covered in Tips for Effective Boards, numbers 51-54.  To review these, please click https://www.BoardsOnCourse.com/blog.

I will be happy to customize a workshop for your board on building and maintaining a successful Board-CEO partnership.  Such a workshop may be particularly helpful when transitioning to a new CEO or when board and CEO would like to enhance their relationship.  If you would like more information, please respond to this email or contact me via jpbohley@gmail.com.    

Please take the time to check out the Policy Governance® model.  It provides a comprehensive board governance design that provides a sound basis for a successful Board-CEO partnership.  For more information about the Policy Governance® model please click https://www.BoardsOnCourse.com/policy-governance or contact me at jpbohley@gmail.com.