What role does the President have on the effectiveness of the Board?

Board effectiveness: what role does the chairperson have?

The Chairman of the Board (COB) has a fundamental role, particularly in the efficiency of the Board of Directors (BoD). While the role of chairperson does not usually give him or her any particular authority, he or she can have a strong impact on the recruitment of directors.

We have seen how crucial the choice of good directors is, see " How to make your board more effective ". The BCP influences the effectiveness of each individual and the performance of the whole.

What are the operational issues that BCP needs to address in order to have a strong impact?

The first point to emphasise is that chairing the board is the responsibility of the chairman, not the CEO. In small companies, where functions are often combined, the CEO must therefore leave time for the Chairman.

The second point concerns the identification, at the beginning of the year, of the strategic subjects that the Board will deal with in depth. These strategic topics mainly relate to risk management, budget, strategy, HR and remuneration policy, etc. The PCA ensures that a work schedule is drawn up for each of the topics identified.

For optimal efficiency, it facilitates the definition of 5 to 6 fundamental issues related to strategic subjects. It encourages the directors and managers of the various specialisations to work with the lead directors. This collective intelligence makes it possible to optimise the preparation of the Boards dealing with these issues.

This encourages the involvement of directors in the development of the company with a governance that lives between Board meetings.

The directors and the manager can then develop a real collaborative and constructive dialogue.

This avoids the risk of directors finding out about fundamental business issues during board meetings. When this happens, they are unable to contribute effectively and take the relevant decisions.

In terms of the effectiveness of the AC, studies* show other important points about the BCP.

1. The fact of holding several mandates as a PCA.

In fact, the second term is usually the most efficient statistically. The BCP has had time to familiarise itself with the ins and outs of its mission during its first year. They are fully effective in the second year.

However, by the third term, the risk of developing a conniving relationship with the CEO increases. This is likely to undermine control over the management and strategy of the group.

2. The independence of the BCP

The separation of control and management functions is intended to strengthen the supervisory and sanctioning power of the BCP and the AC over the management of the executive committee.

According to some definitions, the BCP is independent if he or she has no managerial functions in the company. In addition, he or she must have "no relationship of any kind with the company, its group or its management that might compromise the exercise of his or her freedom of judgment".

In general, this independence is desired precisely to protect his freedom of judgment.

However, if there is no 'business risk' for the PCA, there may be less incentive to mobilise and motivate directors. Indeed, seeking out and internalising in the board the holders of the sources of uncertainty on which the company's profitability depends is crucial.

In this case, the result is counter-intuitive. Indeed, studies show that the effectiveness of the AC is not positively but negatively influenced by the independence of the BCP.

Furthermore, if the BCP has no relationship whatsoever with senior management and the company, this greatly diminishes his or her ability to identify in a timely manner the company's problems and challenges that need to be brought to the attention of the board.

When the PCA is made aware of these facts on the spot, he or she may feel unable to lead the discussion effectively. Conversely, when the CEO becomes a shareholder in the company, the likelihood of the board becoming effective increases by a factor of about fourteen*.

CQFD: Studies therefore show that the board is more effective in carrying out its tasks when the CEO is also a shareholder in the company.fulfilment

3. Being multi-appointed

When the BCP is multi-mandated it has access to more information and knowledge that is important to the business.

This may include information on industry practices, strategies followed by other companies and good governance practices.

This has a positive impact on the quality of the deliberations and the objectivity of the work.

The PCA can therefore more easily facilitate the exchange of opinions and ensure the transfer of experience. It is better able to transform the board into a real place where debates are conducted methodically and professionally.

In conclusion, the effectiveness of the AC is therefore positively influenced by the fact that the BCP is multi-mandated.

The BCP and its role as chairperson

Finally, it is important to distinguish between the nature of a PCA's power on the one hand and the role expected of a chairperson on the other.

A chairperson usually intervenes at 4 levels:

1. Enforce the framework
This is important for the proper conduct of the debates.
(time management/punctuality/agenda management/fluidity, etc.)
2. Facilitate
The PCA ensures that everyone has a say.
(collegiality/ transparency of positions taken/ distribution of speaking time, etc.)
3. Provoke
The PCA plays the devil's advocate.
(constructive contradiction / questioning / debate / expression of doubts, etc.)
4. Catalyse
The PCA clarifies, refocuses the debate and decides.
(synthesis after each topic / validation and vote if necessary, etc.)

It may be advisable for the PCA to call on an executivecoach for a variety of reasons.

Why call on a coach executive for Chairman of the Board of Directors?

A PCA can maximize its potential thanks to a high-level individualcoaching .

An experiencedcoach professional will facilitate his or her ability to establish legitimacy and know-how. The position of PCA is by no means an easy one. At the same time, he or she has to use his or her skills as a manager (of the Board of Directors), while at the same time handling the art of questioning with skill and patience.

These two postures often do not go together. While the first is often well mastered (leading), the second is not self-evident and requires training (the position of withdrawal and subtle control of questions).

This is where a coach expert can help you develop your rhetoric, in particular your ability to formulate the right questions. It also helps to maximize the impact of public speaking.

Of course, the choice of coach is important. It is often even more useful to mandate a certifiedcoach who also acts as a trainer on these topics.

Indeed, a coach-trainer can help PCAs optimize their leadership skills and adopt a confident, supportive and diplomatic posture .

It can help to ensure that stakeholders are taken into account through personality analyses. These analyses make it easier to tailor the PCA's communication to each distinct personality for stronger buy-in. While respecting ethical standards, coach can sharpen the art of persuasion and the ability to influence.

It is also there to sound the alarm if there is a risk of burn-out and to provide a healthy perspective.

It is also highly recommended to invite coach to the Board of Directors as an observer, in order to develop the PCA's potential in greater detail.

Finally, a coach executive team experienced in this type of exercise can greatly assist the PCA in his role as chairman of the meeting.

Benefits of coaching for Board Chairmen

The presence at Board meetings of, for example, a coach business specialist in systemics, helps to reduce tensions and prevent conflicts.

As a facilitator, he/she supports the BCP in managing the time of the session.

It also assists the BCP in ensuring that all agenda items are addressed within the time allowed.

Whether upstream, at coaching or during team meetings, a solution-oriented master coach helps prioritize the essential points to be discussed with the Codir.

It ensures that all directors express their views and that everyone is listened to.

In the event of differences of opinion, he or she guides towards a consensus or, failing that, towards a decision taken by a majority.

When there's a problem to be solved, a coach professional uses the collective intelligence and contributions of everyone involved to fertilize generative collaboration. His or her expertise often enables co-constructed solutions to emerge that no-one else had thought of.

Finally, this coaching group has the advantage of deepening relationships between directors, team cohesion and motivation.

* From "Les déterminants de l'efficacité du conseil d'administration (CA) : une exploration à partir des caractéristiques du Président du CA", Georges Kriyoss Mfouapon, Jules Roger Feudjo, Recherches en Sciences de Gestion 2015/1 (N° 106), pages 25 to 44

For further information, please contact Fabienne Revillard

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