First of all, let’s clarify a term. When I say CEO, I mean the sole staff person to whom the board delegates. That could be a CEO, Executive Director, President, Senior or Lead Pastor, etc.
- Does your board subject your CEO to the invisible expectations guessing game?
- Does your CEO have to figure out each board member’s expectations for CEO performance?
- Is your CEO’s performance tied to his ability to gauge each board member’s expectations?
- Is your CEO’s performance based on how well she holds together a “supportive” coalition of board members?
If you answered ‘yes’ to any of the above, ask yourself how fair that is to the CEO?
At any given board meeting, the CEO has to figure out the expectations of each board member. But each board member’s expectations can vary from meeting to meeting. Expectations may depend on what she ate, how his day went, the latest article she’s read or his family life.
Why not try a fairer approach? Why not, as a whole board, pre-determine your expectations of organizational performance? Why not then state these expectations in written policy? In this approach the CEO has a clear view of the board’s expectations. It removes the guessing. It allows the board as a whole to make changes to those written expectations as needed.
How would this work? The board would establish two sets of its expectations for its CEO in written policy.
One set would address what results the board intends targeted recipients to receive. That set also would state the worth of producing those results. For simplicity, let’s call those Ends. The Ends capture the board’s intended strategic direction.
The second set of policies states what means are off-limits to the CEO to achieve Ends. The board puts off-limits the means it sees as unethical or imprudent, even if work to achieve the Ends. We will call these Executive Limitations. This set of policies specifies what the CEO cannot do to achieve the intended strategic direction. In essence, the board is “pre-approving” any CEO action within these limits taken to achieve the Ends. It’s not “Stop until we say Go.” It’s “Go until we say Stop.” Any CEO with leadership skills will welcome the clarity of this approach. It beats a “Mother, May I?” way of seeking board approval before acting.
The process requires board reflection. The board has to take time to understand its own collective values. Those values are the “why” behind the Ends and Executive Limitations policy statements. Without understanding its values, the board will have a random list of policies.
The next step is for the CEO to show how much Ends achievement there has been. She also has to show compliance with Executive Limitations. This requires the CEO to provide the board with defensible measures. Then she has to provide data for each measure that shows such achievement and compliance.
This is fair, is it not? The board states its expectations in writing. The CEO must interpret them reasonably and show he complies with that interpretation.
Ethical accountability requires fairness and transparency. If you want to hold your CEO accountable in a manner that is both fair and transparent, try the above.
If your board would like to further explore accountability and board leadership, consider booking a discovery call with us. This is a free no-obligation conversation to learn how working with us could support your board in achieving role clarity, proactive risk management, and future focus. Book your call today!
Sign up for our upcoming virtual courses. Introduction to Policy Governance® starting March 26. Get more information here!
Join The Governance Coach consultants Andrew Bergen and Susan Meek, who bring decades of collective experience working with school boards across North America, as they delve into the top governance challenges school boards face today. Free webinar on March 12 at 3pm EST – Boardroom Breakthroughs: Solving the Biggest Challenges Facing School Boards. Register here!