An extensive study has unveiled the required ‘x factor’ that makes a great board chair.
A total of 215 Directors with Board positions on FTSE 100, FTSE 200, large private companies, private equity companies and public sector boards were interviewed by Board performance experts, The Change Partnership.
Eighty-three per cent of respondents said that the quality of the relationship between the Chair and the CEO is the decisive factor in what makes a great Board Chair.
In second place with 75% of the vote, is the need for a Board Chair to conduct a meeting where ideas can be challenged and debate encouraged. A great chair said the respondents, is one that promotes independently-minded input from all Directors.
Third of the top three criteria is continuous improvement in the selection and succession processes for Board positions (66%).
The Ten ‘X factor’ Tenets that make a great Board Chair include:
- 1. Working well with the Chief Executive
- 2. Achieving openness and transparency at the Board
- 3. Working continuously to improve Board performance
- 4. Running a flexible process
- 5. Adopting an open leadership style
- 6. Someone who was not the previous Chief Executive
- 7. Having broadly based rather than sector specific experience
- 8. Prepares for the role
- 9. Is personally accountable for Board performance
- 10. Balances regulation and strategy
Author of the report, Susan Bloch, a Partner at the Change Partnership commented:
“Clearly, the quality of the relationship between a Chair and the CEO is crucial. This is no mean feat when the Chair usually arrives after the CEO is appointed. A Chair with self-awareness and strong interpersonal skills is in a far better position to negotiate the ups and downs of this delicate double-act.
“True leadership will come easily to a Chair with the common touch who can engage with people at every level within the business. There is no room for an out of touch and distant figurehead at the top anymore.”
