Guidance  (#6 -#10)

Guidance #6: Occasionally, the Chair and CEO are the same individual and nor is this wrong practice. Jeff Immelt of GE is both CEO and Chair and is doing a very good job. However, one must be watchful of either the CEO or the board overpowering the board meetings. Although a firm hand is needed at times, board dialogue must be geared towards constructive ends. “If two people keep agreeing then one is not needed…” (Ram Charan)  

Guidance #7: Knowledge of board dynamics and operative frameworks is essential for all board members, while training must be value-driven and expand business thinking while sharpening board performance. Evaluate existing methods of training for what works well. How often are these thoughts shared? Are there new areas of learning for boards to discover? Is the training actually relevant to the whole organisation?

Guidance #8: Board interference in staff affairs can be counter-productive, preventing otherwise competent staff from acting independently and according to their own best judgment. The CEO should remain in charge of the staff, ruling out the possibility of the board undermining staff talents and skill sets purely due to a corrupted chain of command. This authority also lends itself to improving clarity in role distinction in terms of responsibility and accountability.

Guidance #9: The whole area of risk monitoring is paramount to the success of your organisation. Evaluate the methods that currently exist for the management and monitoring of risks. Policies officially express the boundaries and parameters the board wishes to set, within which the CEO is allowed to have free reign and whose actions are subsequently monitored. Policies need to be created so that specific areas that concern risk are addressed, as per the organisation’s monitoring methods.

Guidance #10: A clearly defined outcome is the starting point to mapping the direction and roadmap, keeping in mind the importance of charting the easiest route with the fewest hurdles. Beyond this fundamental step, further specifics and diversification into other aspects can be performed.