In response to a question at LinkedIn:
How can an Executive Chairman
effectively navigate contact with company executives and his CEO?
I have sat in both roles - as an Executive Chairman,
actively engaged with management, and as a non-executive Chairman with a more
traditional relationship.
In the Executive Chairman role, the situation was a
turnaround of an overseas-headquartered company, with the company acquired out
of bankruptcy. Most of the management
team was new to the company, or coming in after serving in a contract
relationship with the company. The CEO
we brought in had not had a previous executive position. The sponsor looked to me to ensure the
success of the company.
I will suggest that the only way I can see such a
relationship work is if a) both the Executive Chairman and the CEO understand
and accept the boundaries between the positions, and b) as the CEO demonstrates
success, the boundaries are visibly shifted, with the possibility and likelihood
that the roles will one day convert to traditional roles – frankly, as the CEO
demonstrates success, the roles must convert to traditional roles. I do not see such a relationship as being
permanent. If it is successful, it must
evolve as I describe here. If it is unsuccessful,
one of the two must depart as one of the two is not properly growing into and
evolving the role.
The possibility and method to achieve this transition should
be openly discussed at the board and with executive management, such that there
is accountability and buy-in from all directly affected by this non-standard
relationship. This, then, places
accountability on both the CEO and Chairman – for the CEO, he now has a roadmap
he must meet to achieve further autonomy; and for the Chairman, he now has made
clear his obligation to eliminate the “Executive” portion of his role as the
CEO grows into the full position.
