If you are a control freak even the title will scare the heck out of you. If you’re smart, you’ll take a good hard look at the value of this position. Not all Chairs are created equal.
Non-executive Chair positions are non-operational, serve as intermediaries between the operational team, the investors and the Board of Directors. You may enjoy working alongside with them to prepare the agenda as well.
An Executive Chair often has the same duties as a Non-Executive Chair, adding CEO oversight with high-level operational responsibilities.
So do you want one? If so, which one?
In our experience, it all depends. There is no right answer, but there are some guideposts that can help you think it through:
Non-Executive Chair:
- You have investor care and feeding that has become a burden. Investors interrupt your day-to-day deliverables and you need a buffer.
- You are not good at developing or running your Board meetings. If your ego gets in the way and you don’t recognize this, your Directors may recommend a Chair to improve the situation.
- Your Directors enjoy a facilitated Board meeting that is not centered on the CEO. Often your agenda can cloud the agenda of the company and their fiduciary decision-making
Executive Chair:
- The complexities of your company are too much for you to keep up with. As CEO you are primarily in charge of Vision, Team and Funds. Strategic navigation may need an extra boost in bandwidth
- You are passionate – perhaps to a fault. If you are also the Founder, a more objective partner/leader will help with your objectivity. Not a threat if you both choose wisely, a real tailwind. Not much better than a team of two at the top
- There are core competencies your company needs that an operational Chair can bring in, without wasting precious time as you learn them. Often your ‘tuition’ can be too costly in time and money for the company. If you take it personally, we have a problem Houston. If you embrace this, you one smart cookie.
Ego and competitiveness are really important for you as a leader. If your Directors and your interest steer you towards integrating a Chair, embrace it and structure it with the company in mind. Any bull-headedness here and you may be threatening the very governance your company needs. And note, I don’t say ‘Chairman.’ Women that Chair a Board can often be outstanding facilitators and communicators !
Build well