Board And Ceo Dynamics Case Study

Superior Essays
Board & CEO dynamics

The starting point for exploring the dynamics between the board and the CEO is the determination of what kind of relationship it should be. The BoardSource states that "board chairs and CEOs who acknowledge that they are partners and make a commitment to a relationship of mutual trust can keep the organization moving ahead" (BoardSource, p. 251). In determining these dynamics, a board should ask itself what it wants from its chief executive. For example, should it be a partnership or a boss-subordinate relationship? Should the board "control" the CEO, or should it allow the CEO to control him or herself, but within board-determined "control" boundaries? Some boards need a chief executive who will grab the wheels and rides
…show more content…
She underscores that "the CEO and the board chair motivate or enervate the board; propose or impose the agenda; promote a culture of inquiry or one of passivity" (Trower, p. 181). For her, "the CEO and chair together are team builders; they work together to recruit board members who are team players and ensure that a code of conduct is written and adhere to" (Trower, p. 181). Therefore, the board chair and the CEO are partners in leadership. In other words, the CEO-Chair relationship is akin to entering a marriage. Related to the marriage between two people, the CEO and Chair enter into an agreement accepting legal and financial responsibility for the prosperity of constituents beyond themselves: employees, donors, people or the globe. A CEO and Chair must, therefore, appreciate how critical their relationship is to the success of the organization and its purpose. Obviously, nothing can be accomplished in the organization should the CEO and Chair relationship collapse. For example, when a marriage is in trouble, the entire family is affected. In a nonprofit, when the relationship between the board chair and the CEO is unstable, the entire organization is also …show more content…
BoardSource underlines that "knowing your boundaries, as prescribed by your job description, will make you less likely to overstep them" (BoardSource, p. 251). This is achievable, particularly when there is an imbalance of authority between the parties. It is vital that the board and the chief executive understand and respect each other's role and responsibilities, that they understand the difference between governing and managing and support the other in the carrying out of the different elements of their role. For the author, the CEO and the board should clarify their respective roles within the organization and record them in simple and straightforward terms" (BoardSource, p. 274). This is because oral tradition does not work well in nonprofit organizations. To ensure these three building blocks are unbreakable is to have a "no surprise" agreement. The CEO and board should be fully informed of one another's position, priorities and concerns at all times. Be intentional to communicate thoroughly and respectfully, especially when the going gets

Related Documents

  • Improved Essays

    I have illustrated the situation below: There is a very unique correlation between the company’s strengths, weaknesses and external environment. The lack of communication between Jack and his team, a weakness, directly leads to the company falling behind the competition, its external environment. The company’s corporate level strategy is in shambles. When the CEO secludes himself from the rest of his team and only focuses on one aspect of business level strategy, product innovation, the company will not operate at full capacity. Interboro’s business level strategy can be summed up in the following quote by its head of production, Frank Tambor: “he didn't have much faith that anyone in the company could come up with ideas, so he didn't really develop the capability.”…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Five Temptations of a CEO Professional Leadership Paper In the book the Five Temptations of a CEO by Patrick Lencioni, there are many critical points that are made about what temptations you will face when you become a CEO and the concept of reality. Assuming the responsibility of a CEO of a corporation or small business is incredibly difficult and extremely stressful. Furthermore because of this you will be put under many temptations. Some of the temptations that Lencioni discusses are Results vs. Status, Accountability vs. Popularity, Clarity vs. Certainty, Conflict vs. Harmony and Trust vs. Invulnerability.…

    • 894 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    DCCCD Case Study

    • 604 Words
    • 3 Pages

    DCCCD is a large district for new students and employees to navigate. New employees are not able to see the big picture of leadership because of the time and attention to detail at the campus level. One campus in particular, North Lake, a sister college of the district, has its own campus president, President Slekjo, who reports directly to the Chancellor of DCCCD. President Slekjo currently has the following leadership practices and or responsibilities at North Lake- to provide strategic leadership to the campus in order to ensure North Lake remains in formation with the overall district, board of trustees and Chancellors’ initiatives, to be the liaison between the college and the community so that businesses, social organizations and students…

    • 604 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    If board did not follow Smith’s advice, he needs to respect their vote power as much as he expects for his decisions to be respected in return. In my opinion Smith acted very unprofessionally by disappearing from the Chicago art community and not answering calls. 5. How are the roles of board chairman and an executive director different in an organization such as the MCA?…

    • 856 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    MEGO Syndrome

    • 763 Words
    • 4 Pages

    Introduction Money is the lifeblood of a nonprofit organization. Without money, there is no mission. Nonprofit sustainability requires financial leadership. Financial leadership may manifest itself in the Board of Directors (BOD) and the nonprofit organization’s Executive Director (ED).…

    • 763 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Eastlane Ethical Dilemma

    • 912 Words
    • 4 Pages

    The dilemma and its facts are as follows. The CEO’s responsibility lies with the wellbeing and face of the company, protecting its interests over all things. Tasked with enforcing policy and procedure,…

    • 912 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    According to Bolman and Deal (2013) the political frame (metaphor: jungle, arena, or contest) is a necessary ingredient to organizational effectiveness. This frame not only entails authority as dictated by the structural frame. It also emphasizes leadership skills, power and personality traits such as reputation and coercion (Bolman & Deal, 2013). With regard to this situation, the CFO has formally announced her retirement at the end of the year. The human resource department has been tasked to recruit a replacement for the retiring CFO.…

    • 460 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Hospital Governing Board

    • 281 Words
    • 2 Pages

    Second, the board hires a CEO who forms an administrative team that is capable of making smart strategic and…

    • 281 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    1. Introduction The practice of good governance is pertinent to ensure that positive business performances are realised. The governance roles of boards can directly impact the success of an organisation. Each organisation is unique in aspiration and goals, and there are notably many different styles of boards, which are associated with the design of a particular organisation.…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Leadership Profile: Mary Dillon – ULTA Beauty Mary N. Dillon has played a crucial role in improving the overall productivity of ULTA beauty since she took the leadership mantle as the Chief Executive Officer in 2013 (WIRE, 2013). She earned her bachelor’s degree in Asian studies and marketing at the University of Illinois, Chicago. Her success in the companies is often attributed to the vast experience she had gained in the consumer-driven sector for three decades. Before joining Ultra Beauty Company, She had served as CEO and president in various companies. Key among the companies where she served is US Cellular Company where she has a reputation of accelerating the expansion of various operations and production capacity thus improving the…

    • 1387 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    One of their main responsibility is to hire and manage the CEO. They only hired a potential CEO but did not follow through with management. They were not able to guide the CEO or control his actions. In this case the Board of Directors may not have compensated the CEO fairly leading to this sort of corruption. The board of directors is also responsible for creating a mission and vision statement and to also adhere to the statements to ensure correct progression.…

    • 1042 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    It is well known that corporate governance has been defined as “the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies, including setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.” (Financial Reporting Council, UK Corporate Governance Code) Leadership and Board Effectiveness According to the recent annual report, Diageo has been in compliance with The UK Corporate Governance Code which was published by the Financial Reporting Council in September 2014 until 30 June 2016. In this year, Diageo has 13 board members in total and 5 of them are women.…

    • 1440 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    CEO Compare and Contrast A Chief Executive Officer (CEO) of a company is the “boss” and they are responsible for everything, including the success or failure, of the company. They are in a place of legitimate power, “a place were a person in a higher position has control over people in a lower position in an organization” (Giang ). Without a clear understanding of the power that they hold, they may abuse it. A CEO has many individuals counting on them to be successful with every move they make and a CEO must be able to meet the needs of all of those individuals, including employees and customers.…

    • 1284 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    According to Jerzemowska, M., (2006), there is an agent relationship when a person or a group of people, who are the principals, employ a third party as an agent to perform services or tasks on their behalf. The principals delegate their decision making powers to the agents who represent the principals. There are two main types of agency relationships that exist in a firm, namely, between shareholders and mangers, and between shareholders and creditors. Shareholders are the owners of the business. Very often, they do not manage the firm as they lack the necessary expertise.…

    • 1088 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    If they were improved we would see situations like Enron, but similar to Enron we have scandals that are common place like Green Mountain coffee, Chesapeake Energy and Groupon. Continuing issues with the Board of Directors calls for additional changes. A few recommendations would be to set term limits for board members (not a bad idea for congress as well), require continuing education, require ethics training. (Forbes, 2012) The control environment is corrupted when owners / cofounders are able to set their own compensation and manager the board of directors. How can you maintain independence if the board is not truly…

    • 718 Words
    • 3 Pages
    Improved Essays