Is Your Board Setting a Good Example for the Company?

Is Your Board Setting a Good Example for the Company?

The CEO sets the example for how employees should act — and board members should be setting an example for the CEO and senior management. If board meetings start late or have discussions that devolve into personal attacks, those behaviors can cascade throughout the company. That’s why boards and senior leaders need to model how they want others to act. A good first step is to create an “operating agreement” that lays out the CEO’s expectations of the board and vice versa. The agreement might include, for example, running meetings in which everyone has a chance to voice their opinions, providing monthly reports on the state of the business, and treating each other with respect. Think about what kinds of cultural norms you want to establish, and what you want business as usual to look like. Review these expectations annually during performance reviews and board self-assessments. Evaluate whether senior leaders and board members are sticking to the agreement, and remind everyone of their commitments.

Adapted from “How to Make Sure Your Board Sets a Good Example for Your Company,” by Kenneth W. Freeman