Five strategies for making the relationship succeed.
We have advised and assisted many boards of directors with succession planning and coached new chief executive officers through their first year of transition, and we've found that most CEOs encounter big surprises after assuming the top job. Many are overwhelmed by the sheer demand on their time and how many balls they must juggle at once. The past couple of years have only made things harder for new CEOs, with the business environment the worst since the Great Depression and with a whole new, very powerful constituency to manage--the government. Even with all that, one of the biggest discoveries for a new CEO is how much time and energy is required to lead, manage, and effectively interact with the board so as to add value to the organization.
Some CEOs eagerly embrace this role; others see it as a distraction from what they consider the real work of running the company. They may delegate board relations to the chief financial officer or general counsel and give it little attention personally. They often do so at their own peril. With boards continuing to ramp up their scrutiny and oversight of management, CEOs need more than ever to focus on board interaction. You may have stronger board members than ever before, but the CEO still must play a significant role in board leadership.
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