Chairmanship and the Boardroom - The First 100 Days
Posted by Robert Hargrove
Criticaleye, a UK consulting firm that focuses on helping leaders navigate the C Suite, recently held a luncheon with the topic of the chairman’s role during their first 100 days. Whether you are a NEC (non-executive Chairman) or Chairman/CEO who is running the business, it’s a good time to both take stock and to establish a simple vision of what you want to achieve over the next 3 years or so. One good way to get there is to lead a debate among the directors about what goals should be accomplished, what tone needs to be set in the culture.
CEO relationship is the lynchpin. Leslie Van de Walle, Chairman of building material company SIG plc, reflected on his first 100 days as chairman and outlined the following as crucial for success: “For any chairman, the relationship with the CEO is the lynchpin for the success of the business. The chairman should assess whether the CEO lacks experience in a particular field of expertise and add value by plugging those gaps with his/her own experience. “
Only fools rush in. Simon Laffin, independent NED (non-executive director) of market research business Aegis Group plc says: “The new Chairman’s most important task is to establish the relationship with the CEO. The CEO will worry that the Chairman will interfere too much, and the new Chairman will want reassurance that the CEO won't give him any nasty surprises. It's a bit like an arranged marriage. Both parties are chosen by others, but you've still got to live together.”
Deepen relationships through Informal meetings. Rick Haythornthwaite, NEC of MasterCard Inc. and Network Rail Ltd, suggests informal meetings might aid the bonding process. “Get to know the NEDs. They will be wary of your arrival, so decide early whether there is a need for change and get on with it – the sooner that you get to a stable board, the better. Establish NED dinners, if they do not exist, and put a date in the diary to meet the board with partners in a social setting. Both steps deepen relationships quicker and make for better dialogues.”
Hold a board strategy day. But to gauge what kind of board has really been inherited, the chairman can always hold a board strategy day, as Alison Carnwath, Chairman of commercial property company Land Securities plc, explains: “Once you have spent time with the CEO and other senior management and talked to shareholders, you should assess your board and begin to form a view of what the critical short to medium-term challenges are. Holding a board strategy day is one way of bringing this all together.”
It’s important to both understand the company situation before stepping into the Chairman’s role as well as to be prepared for the unexpected—a defection of the CEO, a drop in the stock price, an explosion at the plan.
Stay completely balanced at the back of your corporate toboggan wherever possible, but always be prepared to redistribute your weight from one side to the other very quickly.