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







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



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 !



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



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



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 !!



• 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



• 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 !



• 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







Approach to Board for First Time CEO

Documents

Approach to Board for First Time CEO