When we work with clients to support their governance effectiveness, the role of the chair, and how they can lead a successful team often gets asked.
The role of an effective chair is crucial in ensuring the smooth functioning and success of an organisation. To be most effective they need to have a number of attributes including:
- Leadership and Vision: They provide strong leadership, set the strategic direction (with the board and management), and communicate a clear vision for the organisation. They inspire and motivate board members and staff to work towards common goals.
- Governance and Oversight: The chair plays a central role in corporate governance, ensuring that the organisation operates within legal and ethical boundaries. They oversee the board of directors, ensure proper board composition, and promote transparency and accountability.
- Board Function: The chair facilitates the efficient functioning of the board. They organise and conduct board meetings, ensure effective decision-making processes, and promote constructive discussions among board members. They also foster a culture of open communication and mutual respect.
- Relationship Building: An effective chair represents the organisation to external stakeholders such as stakeholders, regulators, and the community. They build relationships, maintain positive public perception, and advocate for the organisation’s interests.
- Strategic Planning: The chair collaborates with the CEO and the board in developing and implementing strategic plans. They provide guidance, assess risks and opportunities, and help align the organisation’s activities with its long-term objectives.
- Mentorship and Development: A chair should act as a mentor to the CEO and other senior executives, providing guidance and support. They foster a culture of continuous learning and professional development, ensuring that the organisation has capable leaders for the future.
- Succession Planning: An effective chair recognizes the importance of succession planning and works with the board to identify and develop potential future leaders, both around the board table and in senior management. They ensure a smooth transition of leadership and continuity of the organisation’s vision and values.
- Continuous Improvement: An effective chair is committed to the organisation’s ongoing improvement. They review and evaluate the board’s performance, seek feedback from stakeholders, and initiate necessary changes to enhance board effectiveness and organisational performance.
In summary, an effective chair combines strong leadership, strategic thinking, and governance skills to guide the organisation towards its objectives while fostering a positive and productive board culture.
Michelle Swallow