The Fall 2010 issue of The Conference Board Review offers what I think to be some helpful insights for nonprofit board chairs and execs. One important note: this article was principally directed to for-profit boards and assumes that the Board Chair plays an important role in the organization as well as addressing the question of an executive chairman which is not generally a nonprofit phenomenon. That said, I happen to firmly believe that nonprofit Chairs can be a make-or-break factor in a nonprofit's success but I recognize that this view may not be universally agreed upon.
The article begins with the statement:
When CEO-Chairmen mess up, governance experts sagely note that the problems were both inevitable and foreseeable, grounded in concentration of power and lack of oversight. But, the issue is about more than independence and accountability, and what seems to make sense on paper. It's about people.
An equally important point follows, speaking to something few nonprofit boards address -- career development of board members (coined for me by associate Don Currie at Mission Enablers).
The wrong individuals--in terms of management styles and personality traits -- may have been appointed to the chairman position. To be effective, a chairman must certainly posess intelligence, integrity, and leadership ability. Equally important, though, he or she must not have--and not be perceived to have--ambitions to be CEO. An apparent lack of rivalry helps to foster cooperation, ease the sharing of information, and allow the chairman to serve as an effective mentor to the CEO. (A Board Chair must have) a willingness to step back and play a behind-the-scenes role....
...if the chemistry between the chairman and chief executive isn't good, the relationship isn't good, the relationship isn't going to work. And if the relationship does not work, the board and the company are in serious trouble.
One CEO stated: I need a partner who I can bounce ideas off and give me advice....
Again, most CEO's maintain a healthy respect for the authority of the chairman and the full board--and try hard to work effectively with them.
Finally, success arrives when both the Chair and CEO pay close attention to individual mindset, management style, and human-dynamics issues--rather than conclude it is unworkable.
All good thoughts I believe as well as good places to start for continued discussion between Chairs and CEO's and maybe the rest of the board too.