How To Be A Good Board Chair

You Don’t Have To Croon Like Sinatra To Be ‘chairman Of The Board’, But Lisa Smyth Learns That There’s More To The Role Than Industry Knowledge And Leadership Skills.

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While not all CEOs will become chairperson of the board, it’s safe to say nearly all board chairs have CEO experience. Last year’s Heidrick & Struggles Board Monitor report found that nearly half of new board appointments to Fortune 500 companies were current or former CEOs, and that 75 per cent of appointees had previous board experience.

And, while many companies, especially in the US, appoint their current CEOs to act in a dual role as chair of the board, the responsibilities of each are vastly different. The CEO is responsible for the leadership and management of the organisation, and for implementing its strategic vision, while the board chair is required to effectively lead the board of directors to enable it to function as the highest decision-making body in the organisation. Former Dayton Hudson CEO Kenneth Dayton said it best: “Governance is not management.”

So, if you find yourself in the board chair position, what exactly should you do? And, what sets good board chairs apart from great board chairs?

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