CEO's role vs the board role
One of the most critical decisons a board needs to make is the appointment of their chief executive. Once the appointment has been made, it is vital to the success of the organisation that there is an effective working relationship - that both parties work as a team. Sounds good in theory but there are some practical difficulties:
- The CEO is in the job 24/7 whereas the board usually only turn up once a month for a couple of hours;
- The board has the ultimate responsibility, but their decisions are usually based on information sourced by the CEO;
- Who has responsibility for leading? The board are elected/appointed to lead the organisation but the CEO is the leader of the staff and sometimes the leader of the board;
- The CEO is the one who makes things happen, but the CEO's authority flows from the board.
Getting the balance on these and similar issues requires that both the CEO and the board are clear about their respective roles, that they respect each others roles, and that there is clear and timely communication between the parties.
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