Building a better CEO and board relationship

Situation:
An emerging company had strong momentum and quickly grew from a startup to a mid-size firm. A new strategy evolved to branch out and further diversify the firm. The CEO was experienced to lead the company through the diversification and was growing frustrated with the Board’s detailed focus on business operations. While well intended, the Board was too involved. The Board members’ skills were heavily weighted on financial oversight and lacked market knowledge for the new direction of the business. The makeup of the Board included several VC’s, an angel investor, the founder, and an industry advisor.

Action:
Executive nSight provided an executive consultant, with extensive Board experience, to work with the CEO and the Board. She first worked with the CEO to define an ideal Board for the next phase of the business. She and the CEO then met with the Chairman of the Board to discuss the benefits of a Board assessment. The CEO’s business case for a full Board assessment was clear. The consultant met with each Board member to learn about their talents and areas of expertise and then weighed them against the ideal Board for the business. The results revealed the gaps and provided insight for the over-involvement. While all Board members were highly qualified, there were areas of overlap and gaps in the emerging needs of the business. Productive discussions ensued, facilitated by the Executive nSight consultant, that focused on the needs of the business instead of the individuals on the Board. The discussions also provided guidance on the role and responsibilities of a corporate Board.

Outcome:
The Board realized the strategic advantage of having a more diversified Board. With full support, two board positions were replaced with experienced individuals for the emerging needs of the business. The CEO gained a heightened level of respect in leading the company. The Board meetings became more productive and efficient in providing the appropriate levels of oversight.