How smart CEOs build trust with their boards
CEOs can build better relationships with their boards and turn them into their greatest allies by taking manual work, unpreparedness, and guesswork out of board governance processes.
While the CEO manages the executive team and drives the company forward in pursuing its goals, the board’s role is to oversee this activity and provide strategic guidance. The board must have a clear understanding of company performance and trends if it is going to provide the right guidance. Critically, it must receive this information on a timely basis, with enough time to digest it and provide feedback.
“Failure to provide the timely and accurate information prevents the Board from fulfilling its obligations. Failure of the Board to absorb the data prevents the Board from properly monitoring the CEO’s performance and providing the strategic guidance expected and required.” (N2Growth)
Ensuring board effectiveness in a changing landscape
The current climate is creating new challenges for companies and putting additional pressure on stretched leadership teams.
Consumers today look to companies with the expectation they will address broader social and environmental issues – from concerns with diversity to offsetting the threat of climate change. It’s an environment of intense public scrutiny, regulatory pressure, and growing cyber risks.
According to PWC’s 2021 Annual Corporate Directors Survey, boards report a struggle to allocate their time in such a climate.
“One thing that we never hear from directors is that their boards have too much time and not enough to do. Directors most commonly report spending between 150 and 250 hours on their board duties. And still, board and committee agendas are packed, and deciding how to allocate time is difficult.” (PWC)
How can CEOs support their boards while ensuring maximum effectiveness?
How can CEOs get the board up to speed, keep them on the same page, and guide directors on where to focus so they can reap the most benefit from their counsel?
The key to any good relationship is trust. With trust comes confidence in information, and confidence in strong decision making.
Without trust, there cannot be a free flow of information between the two parties. And without the right information openly shared, issues or difficult subjects cannot be addressed.
In order to have a level of certainty in an uncertain climate, CEOs need to ensure their boards are prepared with all the right information and ready for disruption. This requires open communication, clear meeting agendas, and encouragement to do more than ‘show up’ for meetings.
‘The meeting never happens at the meeting,’ according to executive search firm N2Growth. Key talking points and issues should be raised well in advance of the meeting so that board members can attend the meeting with well thought out feedback and advice.
Facilitate proactive encounters with your Board
Ansarada Board helps CEOs keep the Board and its members engaged on the big picture strategy without having to deal with the manual back and forth that goes with preparing for board meetings. Ansarada Board is a secure, digital portal where CEOs can house all sensitive documentation and run board meetings with ease. Setting a clear agenda keeps focus on the most important subjects and helps boards allocate limited resources.
We’ve created a free Ansarada Board plan for our customers so you can save time and cost while ensuring the timely flow of relevant information to your board.
What’s included in your free plan:
- 5 users, 1 admin
- 1 board pack per month including minutes
- Up to 25 agenda items
- Up to 20 files
- Features including voting, resolution signing, markup & note-taking, side-by-side view, multiple devices, fingerprint, faceID or pin, offline view, templates, and online help