Being a board chair is a lot harder work than it sounds. A very recent article from Deloitte Insights (read it here) provides some initial findings from their discussions with over 300 board chairs across 16 countries (including Australia and New Zealand) and various industries about what it takes to be an effective board chair amidst the new demands.
Chairs acknowledge that the role is very demanding, but equally as rewarding. The chair plays a critical role in the success or failure of the organisation, not least of all through their relationship with the CEO. From these discussions, five fundamental areas of change emerged:
- Organizational governance needs more chair input
While the chair and the board need to encourage management to be bolder and quicker in assessing risks and rethinking operating models, it needs to be done without overstepping the line between encouragement and oversteering. That is, not trying to manage. - Society expects more from businesses
The chair needs to take more of an active role in adding societal concerns to the board agenda and discussing how management plans to address them. - Climate change requires businesses to respond
A climate strategy is important, whether through the board developing it, or reviewing what management proposes. Either way, it needs to be done. - Crisis leadership is becoming the norm
To stay on top and get in front, chairs are holding shorter but more frequent meetings and enabling members to attend virtually, and scenario planning for uncertain futures. - The board now operates in a hybrid agile mode
Virtual meetings are used to discuss ongoing board business while in-person meetings are typically devoted to topics involving the direction of the organisation.
The article further provides advice on the eight leading practices for being a board chair, and the five for becoming a chair. These are very interesting and helpful for anyone involved in boards, or aspiring to.