The document provides an overview of a presentation on the board-CEO relationship given at the TAHRA Annual Meeting. It discusses principles of effective relationships such as establishing ground rules, acknowledging realities, having a healthy chair-CEO relationship, and clarity of roles. It also covers the five dysfunctions of a board-CEO relationship: fear of conflict, lack of commitment, avoidance of accountability, inattention to results, and absence of trust. Finally, it discusses the stages of organizational development and the trust formula.

1. The B
Th Board-CEO Relationship
d CEO R l ti hi
TAHRA Annual Meeting
September 24, 2012
Gatlinburg, TN
Presented By:

2. Leadership
L d hi
Influence

3. Governance
Organizational control by group
leadership, usually on the behalf of
p, y
others, that ensures an organization
achieves what it should achieve while
avoiding those behaviors and
situations that should be avoided.

4. Management
M t
The organization and coordination of f
the activities of an enterprise in
accordance with certain policies and
in achievement of
defined objectives

5. BOARD IS TO CEO AS…….

6. C
Crossing th St k h ld R I V E R
i the Stakeholder R.I.V.E.R.

7. The Stages of Development
Forming
Transition from individual to member status; explore boundaries of group
Testing the leader’s (Chair/CEO) guidance both formally and informally
Storming
Difficult time; resist collaborating with other team members.
Debate about the approach and actions they need to take.
Question each other’s motives.
Norming
Reconcile competing loyalties and responsibilities.
Ground rules (or “norms”) are accepted; Begin to assist one another.
See the “Big” picture
Big
Performing
Discovered/accepted/compensate for each other’s strengths & weaknesses.
Roles,
Roles Responsibilities & Expectations are clear and followed
followed.
Compliment, don’t Compete.

8. The Stages of
Organizational D
O i ti l Development
l t
PERFORMING
FORMING
ance
NORMING
erforma
Pe
STORMING
Time

9. Strategic Framework
VISION
VALUES VALUES
MISSION

10. Structure
St t
CEO
Board
Manager Manager
Staff Staff Staff Staff

11. Structure
St t
Board
CEO
Manager Manager
Staff Staff Staff Staff

12. Structure: Governing Board
St t G i B d
Owners
Policy Board Agent of the Owners
CEO Agent of the Board
Processes
Manager Manager
Procedures
Staff Staff Staff Staff

13. The 5 Dysfunctions of a
Board-CEO Relationship*
B d CEO R l ti hi *
*Adapted from Patrick Lencioni:
The Five Dysfunctions of a
Team – A Leadership Fable

14. 1. Fear of “Healthy” C fli t
1 F f “H lth ” Conflict
Fear Conflict Engage Conflict
g g
Everybody thinks the same thing. Healthy debate and dialogue.
No one challenges the status quo. Consider new ways of doing
Strive to be “liked”. things. Everyone is respected.
Take resistance to our ideas De‐personalize the problems and
personally without clarification. focus on solutions
“Back office” conversations and Communication is appropriately
personal attacks thrive
personal attacks thrive direct and intentional
direct and intentional
Ignore controversial topics (the We discuss the “undiscussables”
p
elephant in the room) )

15. 2. Lack f Commitment
2 L k of C it t
Failure to Commit
F il t C it Commitment
C it t
Missed opportunities due to
pp Clarity around direction and
y
excessive analysis and priorities
unnecessary delays
Inability to make decisions and
to make decisions and Make decisions and when
Make decisions and when
“move” necessary, change direction
without guilt
Continual second‐guessing and
C ti l d i d Confident and focused on what
C fid t d f d h t
doubt will work

16. 3. Avoidance of A
3 A id f Accountability
t bilit
Lack of Accountability
y Accountable Environment
No standards of performance. No Performance Standards.
evaluation mechanism. Evaluations are performed. Poor
performers feel “pressure” to
improve.
Encourages and accepts Strives for and expects excellence
mediocrity as the standard in all aspects of the work.
Undue burden on the CEO as the
Undue burden on the CEO as the CEO and CGO handle their
and CGO handle their
source of correction and respective responsibilities.
structure for Board members.
We’re just “volunteers” . We’re stewards of other’s
resources.

17. 4. Inattention to Results
4 I tt ti t R lt
Not Focused on Results
Not Focused on Results Focused on Collective Results
on Collective Results
Loses achievement‐oriented Retains achievement‐oriented
people people
Stagnates and fails to grow A culture of “learning” and
continuous improvement
The needs of the individual come Mission‐focused
before the mission
Activity is significant Accomplishment is significant.

18. 5. Absence of T t
5 Ab f Trust
Absence of Trust
Ab fT t Presence of Trust
P fT t
Conceal weaknesses and mistakes Admit weaknesses and mistakes
Conceal weaknesses and mistakes Admit weaknesses and mistakes
Hesitate to ask for help or provide Ask for help
p p p
constructive feedback
Jump to conclusions about the Give each other the benefit of the
intentions of others without doubt
attempting clarification

19. Trust F
T t Formula*
l *
Trust Speed
Nonsense
Morale
Cost
*Stephen M.R. Covey, The Speed of Trust

20. Trust F
T t Formula*
l *
Cost
Nonsense
Morale
Trust
Speed
*Stephen M.R. Covey, The Speed of Trust

21. Principles f Effective R l ti
P i i l of Eff ti Relationships
hi
1.
1 Establish Ground Rules
2. Acknowledge the Realities of the
Board CEO
Board-CEO Relationship
3. A Healthy Relationship Between the
Board Chair and CEO
4. Clarity of Roles, Responsibilities and
Expectations
5. Communicate, Communicate,
Communicate

23. Thank You.
h k
www.weathersgroup.com
@charlesweathers
803.400.1991 (Ph) * info@weathersgroup.com