Most new CEOs are comfortable with the day-to-day responsibilities of running a company. However, managing a board often requires them to navigate more unfamiliar waters. Your board of directors is one of your most vital resources as CEO, so you must quickly learn how to work with them and manage your relationship. Fortunately, there are a handful of best practices you can follow to improve your board management skills.
1. Make transparency your main focus.
Being transparent with your board or directors is of the utmost importance. Failing to do so may convey to your board that you are insecure, or that you think they’re a threat to your leadership. Prioritizing transparency in your interactions with your board demonstrates that you are willing to listen and that you value their advice. This sets the stage for a productive relationship.
The first step toward transparency with your board is simple: tell them that you want to create a more open dialogue. You must, however, follow through with this promise. Don’t hide or bury bad news, and don’t overhype good news—be frank. Answer questions honestly. Always accept feedback with humility, welcome strategic opinions even when they’re not the same as your own, and be open to input.
2. Know how to hold effective meetings.
Knowing how to run meetings is one of the most important—but frequently overlooked—aspects of managing your board. You must cultivate an environment where your board members are excited to attend your meetings (or at least, aren’t dreading them). Keep your meetings engaging by avoiding long, drawn-out presentations. Communicate everything you have to say, but be focused and concise. Even simple things like providing refreshments and making sure your meeting space is comfortable can help directors feel more engaged in your next board meeting.
In addition, it’s critical to ensure that all directors are informed of the agenda and the key issues before the meeting. Don’t let meetings turn into work sessions, and don’t wait until the meeting to surprise directors with bad news—air it out before. All major decisions should be fully vetted with each director before the meeting begins. You should try to reach a group consensus on the big issues beforehand as well.
3. Be an effective communicator.
Communication is hands down the most important element in a productive CEO-board relationship. As such, you should strive to keep an open dialogue with your board. Don’t wait for meetings—communicate with your board as a unit and each director individually between meetings. Take time each month for an informal check-in call with each director; this can help them feel appreciated and informed. In addition, encourage directors to communicate with the leadership team.
You should also manage your board’s expectations regarding communication. Will you be making time to respond to their emails at all hours of the day or will you unplug when you aren’t in the office? Establish expectations and norms up front.
Above all, treat your board as though it’s part of your internal leadership team—because it is. Get to know each director’s particular strengths and give them opportunities to share their expertise. Seek their help on specific issues where they shine. The better your communication, the more you will get done.
4. Maintain a focus on strategy.
Board members tend to approach corporate situations with tactical minds. This isn’t problematic, but it can sometimes cause them to focus too closely on details rather than the big picture. It’s your job as CEO to guide them along a more strategic path. Make sure that each meeting features an agenda with at least one strategic matter. This will allow board members to use more of their skills and engage them more fully in the process. Ultimately, it will make them more productive and help you collectively work toward more complicated, big-picture goals.
5. Don’t be a pushover.
Every CEO needs a backbone, especially when managing their boards. Don’t be a pushover—remember that directors will respect you more and the board will operate more smoothly when you show real leadership. Some CEOs allow board members to waste time complaining about or challenging them on lower-level company issues. Your board of directors isn’t here to manage your company; it should be concerned with governance. It’s up to you to ensure the board stays focused on its proper role.
6. Hone your time management skills.
Time management is important not only when running your company, but also when managing your board of directors. Don’t overburden your board with packed meeting agendas. Spreading out the most important issues over two or three sessions may be necessary instead. Again, make sure that all directors know the major issues beforehand—big surprises at meetings lead to long, drawn-out discussions that waste time and could have been held off-line. Manage your board’s time well, and you will be able to delve into deeper issues and accomplish more.