Approach to Board for First Time CEO

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 1/14

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 2/14

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 3/14

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 4/14

What should a first-time CEO look for in

an effective board ?

•  Strong chairman

•  Pragmatic balance of management,shareholder and NED members

•  Small number of experienced NEDsbringing industry & management expertise

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 5/14

Critical role of chairman

•  A strong chairman

 – Sets the tone & formality of the board

 – Drives the effectiveness of the board

 – Balances effectively between management &

shareholders/investors

 – Resolves conflicts

 – Puts the arm around and kicks the CEOs assas needed in private !

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 6/14

Composition of the board

•  Once investors come on board, there is anatural tendency by CEOs to want to pack

the board with supporters !

•  In addition to the fact that most VCs willinsist on a balanced board,

 – smaller boards are generally more effective

 – usually CEO and CFO ( or other key CxO )sufficient from management side

 – CEO needs to resist tendency for defensive

mindset

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 7/14

Role of experienced non-execs

•  Strong effective boards benefit from a small number of experienced non-execs who bring significant

•  Sector expertise

•  Management expertise

•  Chairmen also use non-execs to help provide a balancedfocus to strategy, key decisions and importantly conflicts

between management and shareholders

•  You need non-execs who are –  strong

 –  strategic

 –  ask the tough questions

 – 

will roll up the sleeves in a crisis –  Have a cool head in a crisis or conflict situation

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 8/14

7 golden rules for a CEO in a board

Formal & well-organised

Absolute honesty, openness & transparency

Focus : 20% on positives, 80% on challenges & areaswhere you need board’s help and creative suggestions

Inspire the board members to want to proactively help

Listen, listen and listen

Continually build confidence in you as CEO

Under-promise & over-deliver !!

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 9/14

•  Formal & well-organised

 – Comprehensive CEO and CFO report package

 – Detailed minutes, progress of actions

 – Regular scheduled board meetings

•  Demand very high attendance levels

•  Absolute honesty, openness &

transparency

 – There is no other way – Holding back and spinning difficult news

inevitably leads to trouble and getting replaced

 – If in doubt, ask the chairman for guidance

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 10/14

•  Listen, listen and listen !

 – You need to build your own understanding of 

each board member s style, concerns

…

.. – Board meetings are your opportunity to

maximise the collective wisdom of the board

 – You need to spot warning signs of concerns

•  Focus : 20% success, 80% challenges

 – You need to give board members theopportunity to contribute by helping in the areasyou need most

 – They are well capable of understanding the

good news from the board pack !

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 11/14

•  Inspire the board members to want to proactively

help !

 – An inspired board member will be thinking about waysto help you outside of the board meeting

 –  This could make the difference on selecting a key

strategy, helping win a deal or deal with a crisis

•  Continually build confidence in you as CEO•  Every board meeting represents an opportunity for 

the board to recognise your growth and performance

as the CEO

•  With each passing board meeting, your maturity and

confidence growing builds their confidence

•  This will be critical to deal with the eventual storms

that come to every business

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 12/14

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 13/14

8/7/2019 Approach to Board for First Time CEO

http://slidepdf.com/reader/full/approach-to-board-for-first-time-ceo 14/14