By Peter Stephenson, Ph.D.
Just as it’s hard to imagine a successful organization not having a great CEO, it’s equally hard to imagine a top performing board of directors that doesn’t have a great chairperson. Unfortunately, many organizations do not apply a systematic method to select a chair, instead granting this honor to whoever volunteers or has seniority.
There is a way, however, to add structure to the chair selection process to improve your chances of getting just what your organization needs and wants. This approach is easy to administer and has the benefits of being transparent and inclusive. It also fosters a spirit of trust, openness, and respect among all board members. Here are three key steps to follow:
1) Develop a current position description. Think of the job description as a fluid document that should ebb and flow with the changing needs of the organization. When drafting your requirements, this is the time to consider your immediate and future needs. Are you in a time of management transition? Are you growing? Are you having particular balance sheet or income statement challenges? With each transition to a new chair, you can revise and refresh the position description as appropriate.
2) Invite potential candidates to self nominate. Once the description has been agreed upon, ask potential candidates to consider the skills they would bring to the table. If they feel there is a match, self nomination is encouraged. It’s always a good thing to have a chair volunteer for the responsibility, rather than one who is strong-armed to step up to the role.
3) Empower a nominating committee. Among the candidates who are not running for the position, select two or three individuals who would be responsible for interviewing candidates. They may also invite and encourage other candidates to run who match up well with the position description. After the vetting process is completed, which should include consultation with the CEO, the nominating committee would make a recommendation to the full board.
The most powerful aspect of this approach may be the collaborative development of the position description. Here’s an example from one financial institution. They thought they knew intuitively what they needed in a chair, but then factored in their current business strategy and the upcoming retirement of their CEO. This led to the realization that the incoming board chair would need to possess critical leadership and mentoring skills they had not previously considered. Clearly, putting the standard position description into an environmental context put a new spin on the election process, resulting in the selection of the right chair for the right time.
The goal of managing the chair position transition should be a board that is stronger at the end of the journey than they were at the beginning. That’s easily achievable with just a little extra effort put into the process.
Dr. Peter Stephenson of Meridien Consulting Services Inc., Toronto, is an organizational psychologist, management consultant and trusted advisor to CEOs, boards of directors and executive teams.
Dr. Stephenson is part of the faculty for CUES Governance Leadership Institute™, an advanced learning opportunity for credit union executives and directors that focuses on issues at the organizational level. Learn more about this program today.
