Executive Coaching, The Chief Executive Officer & the Board of Directors
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1 Executive Coaching, The Chief Executive Officer & the Board of Directors Coaching the Chief Executive Officer ( CEO ) to Make More Effective Use of the Board of Directors ( BOD ) Agenda Discuss development of best practice coaching techniques to be applied to CEO Executive Coaching Programs Goal is to help the CEO make more effective use of the BOD 1
2 Framing Elevator Speech Topic: I wanted to learn about BOD Effectiveness Question: Because I wanted to find out what tools and guidance methods are currently available and used by the CEO to effectively manage the BOD, and whether it could be enhanced through a specific coaching process, and if so, how Significance: To develop coaching programs designed to assist the CEO specifically to better manage the BOD, resulting in increased value to all stakeholders Framing - Approach Incorporated Google Scholar search, publications from ICF, Executive Coaching Forum, Columbia Univ. Library, HBR & general book search Key word searches included Coaching CEO, Coaching BOD, BOD Effectiveness, CEO Leadership Coaching & CEO Team Building Primary Sources Executive Coaching With Backbone and Heart, Mary Beth O Neill; Training Your Board of Directors, Arlyne Diamond, Ph.D.; Evaluating the CEO (HBR), Stephen Kaufman 2
3 Definitions Role of the CEO Responsible for implementing plans and policies as set by the BOD operations, HR management and development, financial management, operations, PR, etc. Primary interface with the BOD providing key info to the BOD for oversight Role of the BOD Ultimate legal authority with fiduciary responsibility to all stakeholders Responsible for setting overall strategic direction, hiring/firing the CEO, advice to CEO on specific operation issues Board Effectiveness Ability to scan environment for opportunities & threats, give constructive feedback to CEO, tap external network to enhance company performance Conundrum Post Enron environment & current financial crisis causing increased focus on independence and oversight responsibilities of BOD Resulting in decreased effectiveness of BOD in providing valuable guidance to CEO and the company & and increased chance for adversarial relationship Challenge is to balance need of CEO to have autonomy in managing the company with need of BOD to provide oversight and perform fiduciary duty 3
4 Primary Thesis The BOD is like a team, with same issues affecting effectiveness many coaching processes exist to increase success Managing the CEO/BOD relationship is the primary responsibility of the CEO but this is not widely acknowledged Specific CEO Coaching focused on this critical issue could provide significant impact to company performance Literature Review Substantial Literature exists on CEO Coaching: Leadership Team Building Employee Relations Substantial Literature exists on BOD Functionality: Team Effectiveness Role Definition Little on Gap between the two How to Coach the CEO to make more effective use of the BOD 4
5 Summary of Findings CEO Coaching techniques focused on leadership and team building within the organization: Internally focused Directed primarily at CEO individually & on relations with employees BOD Coaching focused primarily on improving team functionality Summary of Findings (cont d) Gap exists for incorporating best coaching practices related to helping CEO make more effective use the BOD Increased regulatory scrutiny, current financial crisis and often ill-defined roles of CEO relative to BOD heighten importance of this issue 5
6 Implications for Coaching Practice Expand current CEO Coaching programs to include specific priorities aimed at helping the CEO improve BOD effectiveness Awareness by CEO/BOD of importance to achieving success of CEO/BOD relationship Incorporation of 360, NBI, MBTI, EI SpeedReaching People and Team Coaching exercises Implications for Coaching Practice (Cont d) Specifically aimed at CEO for the CEO to guide development of BOD effectively Development of robust system for on-going feedback to CEO from BOD Commitment to need for CEO to take leadership role in more effective development of CEO/BOD relationship 6
7 References McNamara, C., MBA, Ph.D. (2008). Field Guide to Developing, Operating and Restoring Your Nonprofit Board. Third Edition. Minneapolis, MN: Authenticity Consulting, LLC Diamond, A., Ph.D. (2005). Training Your Board of Directors. Toronto, Ontario, CANADA: Productive Publications. O Neill, M.B. (2007). Executive Coaching with Backbone and Heart. San Francisco, CA: Jossey-Bass, a Wiley Imprint. Auerbach, J.E., Ph.D. (2001). Personal and Executive Coaching: The Complete Guide for Mental Health Professionals. Venture, CA: Executive College Press. Hall, D.T., Otazo, K.L., and Hollenbeck, G.P. (1999). Behind the Closed Doors: What really happens in executive coaching. Organizational Dynamics. Stober, D.R., Grant, A.M.; Chapter 6 (2006). The Evidenced Based Coaching Handbook. Hoboken, NJ: John Wiley & Sons, Inc. The Executive Coaching Forum (2008). The Executive Coaching Handbook: Principals and Guidelines for a Successful Coaching Partnership. USA. Murphy, S.A. and McIntyre, M.L. (2007). Board of Director Performance: a group dynamics perspective. Ottowa, Ontario, CANADA: Corporate Governance. Lawler, E.E., Finegold, D.L., Benson, G.S. and Conger, J.A. (2002). Corporate boards: keys to effectiveness. Organizational Dynamics. References (Cont d) Sundaramurthy, C. and Lewis, M. (2003). Control and collaboration: paradoxes of governance. Academy of Management Review. Coulson-Thomas, C. (1994). Developing g Directors: Building an Effective Boardroom Team. Journal of European Industrial Training. MCB University Press, Ltd. Westphal, J.D. (1999). Collaboration in the boardroom: behavioural and performance consequences of CEO-board social ties. Academy of Management Journal. Buckingham, M., and Clifton, D.O., Ph.D. (2001). Now Discover Your Strengths. New York, NY: The Free Press, a division of Simon & Schuster, Inc. Roberts, L.M., Dutton, J.E., Spreitzer, G., Heaphy, E.D., and Quinn, R.E. (2008). Composing the Reflective Best-Self Portrait: Building Pathways for Becoming Extraordinary in Work Organizations. Academy of Management Review. Tieger, P.D. (2005). President and CEO of SpeedReading People, LLC. Hartford, CT. Kaufman, S.P. (2008). Evaluating the CEO. Harvard Business Review. Benton, D.A. (1999). Secretes of a CEO Coach: Your personal training guide to thinking like a leader and acting like a CEO. New York, NY: McGraw-Hill. Fried, V.H., Bruton, G.D. and Kern, D. (2006). The Entrepreneurial CEO as Coach/Player. Journal of Private Equity; Institutional Investor, Inc. 7
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