‘Don’t buy a dog and bark yourself’ is not an uncommon phrase. But it can become the annoying habit of more than a few company chairs. Particularly those with a long prior career as a CEO.
What qualities make a good corporate leader? And what should a company chairman be doing if he/she wants to be one?
A CEO’s boss is the board of directors. A chairman, in contrast, is answerable to shareholders.
It might be too simplistic to say that a CEO works ‘in the business,’ whilst a chairman works ‘on it’. But that is not too far from the truth.
A well-run company is one where its chair and CEO have a relationship built on openness and trust; where they both know their responsibilities and the boundaries between them.
In my experience, a good chairman is someone with high levels of energy and vision, plus a passion for work. A people-person with emotional intelligence, who can inspire others to be the best they can be. The sort of person in whom others can put their faith. Someone who is both strategic and courageous, but who also possesses a calmness under fire. It’s a big ask!
It is also vital through his/her actions, that a chair is seen to be putting the company first - leading the board and leaving the CEO to manage the business.
Another way to look at it is to think in terms of ‘inputs’ and ‘outputs’. Inputs are more the preserve of a chair: the appointment of the right sort of senior people; the content of board agendas and the efficient running of meetings with clear outcomes. And, of course, the equally clear communication of the company’s direction of travel to all its various stakeholders.
The CEO, in contrast, (being the operational boss of the company), is more concerned with outputs - ensuring the theory works in practice. His/her role is to ensure the big picture questions of ‘what’ and ‘why,’ have been boiled down into the details of ‘how?’ A CEO is ultimately responsible for ‘delivery’ - the effective operational and financial performance of a business and the maintenance of its relationship with customers, clients, and suppliers.
Where chairmen sometimes go wrong, is when they try to keep too tight a hold of the reins. It’s very easy to get buried in operational detail. But, not only is this inefficient, it is almost always irritating. Especially for a CEO.
Onlookers see the whole game. Having this outside-in approach enables a chair to develop a more objective perspective. That’s why it’s important to leave the tactics to the CEO, whilst the chair focuses on strategy.
‘Do you mind if I come in and listen?’ is the sort of question which not only gives a chair the opportunity to learn what’s going on in individual parts of the business. It’s also a way to help employees learn how appreciated they are. I call it ‘management by wandering about.’ It’s amazing what you can learn by talking to junior colleagues. And it helps with corporate morale when staff learns you are genuinely interested in them. Chairmen should do more of it.
We all learn by listening. And good leaders should be programmed to receive, rather than transmit. It is not a sign of weakness to counsel the opinions of others. Indeed, listening enables different opinions to be heard, and this results in the making of better decisions. Decisions that can be made more effective, more decisively and with more justification.
It’s not always easy to list the qualities needed to fill the top seat, and no one is a perfect ten. But, when you encounter a good corporate leader, you know it.
Andrew Lindsay
Chair - Representation UK
With thanks from:
Timothy Rowley - Visiting Professor of Strategy at INSEAD.
Bernie Tenenbaum - Managing Partner of Lodestone Global (taken from Forbes Magazine).
Frank Lewis - NED and CEO of various listed and private companies. Writing in CEO Worldwide.
Professor Stanislav Shekshnia – A Senior Partner at global human resources firm, Ward Howell.
Lisa Smyth - The CEO Magazine.
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