From Oversight to Partnership: Rethinking the Board–Executive Relationship

Today’s fast-paced and complex environment has made it clear that the board-executive team relationship is more significant than ever before. As organizations experience increased challenges, collaboration between board members and executive leaders as working partners is essential. The board is no longer merely an oversight and governance body; it is now a collaborative partner that provides strategic guidance and mutual support.

To assist organizations in overcoming uncertainty and achieving their maximum ability, leaders must rethink how they view the traditional board-executive relationship. Boards that have historically operated as a distanced controlling body need to transform their perceptions to that of being in a partnership with purposeful intent and shared vision. This change benefits both the executive leaders and supports improved ability for the board in their roles of governance. Leaders are under extreme pressure and ongoing public scrutiny, thus having strong supportive collaborative relationships with the board will enable executive leaders to maximize the ability of their leadership.

This article will identify ways in which boards and executive leaders can better collaborate to create success for themselves and the organization.

The strongest organizations thrive when boards and executives move beyond oversight and work as strategic partners

Break Bread Together: Building Trust Through Connection

Creating a strong partnership between board members and executives starts with establishing a platform of trust and understanding. Both boards and organizations consist of people, not merely positions, and thus for there to be a meaningful partnership; each board member must spend time getting to know their fellow board member and the executive(s) as the individuals that they are, outside of their professional identities. One way to forge these connections is through "breaking bread together" in informal settings, whether it is via periodic meals, checking in personally with one another, or engaging in heartfelt conversations.

By committing to building relationships with one another, board members, and executives develop an understanding of one another's strengths, challenges, and values. Such a level of personal connection creates the basis for trusting relationships, which form the foundation of a successful partnership. Trust enables openness in communication, leads to constructive resolution of differences, and facilitates collaboration for difficult decisions.

When board members and executives have caring connections for each other beyond the work relationship, it is much easier for them to align around shared goals, and to collaboratively navigate through challenges. As such, establishing these connections is the first step in moving from a transactional to a true partnership.

Unleash Your Potential: Working Towards A Common Goal

A board/executive partnership that is successful is based on both parties being committed to the shared goals of the board and executive team. When the board, along with the executive team, have committed themselves to a singular organisation and its goals, then they will be able to provide leadership confidently in times of ambiguity, as well as when they are faced with difficult decisions. During these uncertain times, people tend to operate from a position of fear, and can become hesitant, combative, or withdrawn if they are not able to maintain a clear connection to their organisation’s purpose. When both parties reconnect to their organisation’s purpose, they can find the strength to move forward together with confidence.

When people are aligned to a common purpose, everyone involved can take a collective pause, be reminded about what is most important, and refocus on their organisation’s long-term goals. When the board aligns with the executive team’s vision and strategy, they become the executive team’s thought partner and provide valuable input, direction, and support to the executive team as it develops its plans. Through ongoing review of the organization’s purpose, the board and executive team can remain grounded in their roles, work through challenges with direction, and create a feeling of mutual ownership and accountability for the success of the organization.

A Respect for Human Capacity Should be Recognized and Supported: Appreciating the Strengths and Weaknesses of Each Individual

A board or executive leader is never going to know all that there is to know about every aspect of running an organization. Each board or executive leader will have some strengths and weaknesses that should be recognized and supported by both parties in order to create a healthy working relationship. A visionary executive may not have the same operationally minded skills, while at the same time an executive who possesses operationally minded skills may not have the same level of visionary skills as some of the other executives. An effective board will recognize these differences in the two types of leaders and will help to support a leader with their deficiencies.

For example, an executive may have an operational deficiency in detail-orientation, and in those cases a supportive board will assist the executive in finding an individual to hire and/or delegate responsibility to who possesses a detailed-oriented skill set. If both parties to an executive relationship can appreciate and support those human capacities, it is a sign of good governance and will contribute to building healthy, productive relationships with each other.

Establish Conditions For Power To Thrive: Unleashing Leadership Potential

A strong board provides support & guidance; instead of just providing oversight & direction, it is coaching/advocating/partnership based.

An effective board has enabled Executive Leaders to excel through: fostering authentic leadership, encouraging smart risk-taking behaviours, & supporting them in periods of uncertainty.

The responsibility of the board to provide support to the CEO and Executive Team enables them to inspire confidence, innovation & decisiveness as they lead both inside and outside the organization.

When the board allows Executives to lead authentically, they activate the superpowers of the Executive Leaders (i.e. vision, empathy, creativity) and enable them to deliver on organizational objectives through guided leadership.

This form of activated leadership is not about limiting or inhibiting authority but rather, it is about allowing the ability for Executives to maximize the value of their strengths and ability to make bold decisions; therefore, providing them with the necessary space to lead with conviction in alignment with the organization’s mission and values.

In enabling the CEO and Executive Team to lead with authenticity & creativity, boards create conditions for shared organizational success beyond that which could be achieved individually by either, thereby creating shared success through the combined strengths of the Board and Executive Team.

A Strong Board Is an Investing Partner in Governance Health

For any leader’s “superpowers” to be realized on an ongoing basis, the board must have its own superpowers and be strong, self-aware, and functioning effectively. When there is a healthy board culture (based on trust, open communication, humility, shared commitment, and internal accountability), that is the organization’s “immune system.” Just as the body’s immune system provides protection to the body, a healthy board culture provides protection to the organization by supporting, guiding, and holding accountable the executive team.

To do their jobs effectively, a board must also have strong governance structures and processes in place to ensure their work is being done appropriately. Investing in the organization’s governance health through improving the board’s practices and culture will thereby increase the board’s ability to work collaboratively with the executive team and support long-term organizational benefit.

In addition to improving their governance health through their investments in good practices and healthy cultures, as boards continue to enhance their governance health, they will discover their own “superpowers” (e.g., strategic foresight, innovative problem-solving, and collective wisdom). A healthy board culture creates an environment of collaboration between the board and the executive team to facilitate the achievement of the organization’s mission aligned with the board’s values.

Be the Wisdom Keepers: Providing Perspective and Guidance

Wisdom keepers are individuals who have been entrusted to share their knowledge with others. They act as guides and offer perspectives that may help you identify potential challenges or opportunities, as well as provide you with insights into how best to make decisions for your organization.

A board provides its organization with an overall view of all aspects of that company — its past, its future potential and the people involved in both. This type of overall snapshot will enable boards to assist executives in finding guidance and direction, providing executives with future orientation without stifling innovative ideas and leading to the good of the company.

In this light, boards serve as wise advisors who are able to help executives plan for opportunities and anticipate possible challenges as they move forward with decisions.

Additionally, wisdom keeping is not about having power, it is about having perspective about where you have been, what you will be and where you currently are — being open-minded, humble and curious towards your partners (executives). Providing this type of wisdom to executives will allow boards to provide a unique opportunity for each of them to have the chance for growth, development and building shared vision amongst all stakeholders.

In summary, through the preservation of corporate knowledge and perspective, the board members can assist the executive team by providing tone, focus and direction for the executive team to make decisions that will help the organization remain focused on both long-term goals, and overcoming short-term obstacles. With this wisdom and guidance, organizations will recognize that they can find their way through uncertain times and continue to be sustainable for the long-term.

Encouraging Happiness: Cultivating Sustainability and Well-Being

Executive leaders and their teams are faced with major burdens as they address challenges that are pressing and complex while serving their respective communities. The enormous weight of the decisions they must make can be overwhelming to the Board; therefore, it is their job to provide an environment that encourages success through joy and lightheartedness. Bringing joy into meetings will serve as an empowering tool for resilience while continuing to address the issues and challenges at hand.

Joy does not mean to overlook the many complications or to minimise the significance of the work being performed. Instead, it means acknowledging the challenges, while creating a culture of renewal and well-being. When Boards create opportunities to experience joy, music, and humour, they validate, in a very much needed way, the humanity of their executives.

Similarly, Boards are critical to ensuring that Executive leaders have the ability to rejuvenate by supporting them in having proper time and space to recharge. This can include practices such as sabbaticals, restorative breaks, and intentional pauses. The investment that Boards make in their Executive leaders’ well-being, enables those leaders to maintain their 'super human powers', which assists them in effectively leading with a sense of purpose and energy.

Final Thoughts

The dynamics between boards and executives are changing rapidly from being primarily "overseers" to becoming partners. To help support their executives' capacity for authentic, innovative, and resilient leadership, boards are able to provide significant assistance by establishing trusting relationships, aligning around a common purpose, respecting the value of the human capital involved in their organizations, and providing the right environment for executive leaders to flourish.

The process of providing effective governance is not a one-time event but rather requires on-going investment in developing good, collaborative relationships between boards and executives. By utilizing the characteristics of partnership, wisdom, and joy, boards can help ensure that their executive leaders receive the necessary resources to effectively lead their organizations through the increasingly complex challenges posed by today's economic environment and achieve the success that they desire.