CEO/Board Alignment

Is your company still operating with a passive board? The practice of "rubber stamping" carries great risk for both the company and individual directors. Close collaboration and mutual evaluation between CEO and board members is a safer and smarter bet.

Before: CEO's Management Style Jeopardizes Board Relationship

"As chairman of the board of a major financial services organization, I was very concerned about the deteriorating relations between the CEO and the directors. Several had threatened to resign over behavior they saw as arrogant and domineering. They experienced his interpersonal style as sometimes rude, abrasive, and condescending. Others said he did not listen to their point of view, and felt he took unilateral actions on vital matters of corporate strategy. Because his knowledge of the industry was outstanding and he was well thought of in the investment community, some board members still wanted to retain him. But we were seriously considering termination because of the negativity he aroused and concerns about proper corporate governance.

"We decided to ask RHR International to assess the CEO/Board dynamics and determine if the difficulties could be overcome in a fashion that would benefit all parties involved."

After: Mutual Respect Provides Key to Effective Board Functioning

"We began by meeting with the directors to explore their view of the situation. We conducted an in-depth assessment of the CEO, including an individual interview, an extensive interview-based 360° survey, and observation at a board meeting. One RHR consultant then worked with the executive individually to increase the awareness of his impact on others. The supportiveness of the consulting relationship enabled him to drop some of his defensive behaviors and develop a more open, receptive leadership style.

"The CEO saw he had forced the board into an adversarial relationship and realized that changes were necessary. Deep down he knew that fresh viewpoints from experienced and objective external directors were essential to the company’s continued health. The board members, with a new sense of purpose, began to work with the CEO as effective partners, bolstering the profitability and viability of the company."

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Quotable:

"A very simple way to look at ROI is RHR's involvement in that process (above) provides a higher probability of success—and that's measurable."

Michael Meriton
President & CEO
The Golden Source Corp.

Quotable:

"To me, we're managing our business in tough times but I still rely on people to get the job done and the investment we have made in RHR has helped us have a better chance of success."

Michael Meriton
President & CEO
The Golden Source Corp.