6.2. The Board

“Good CEOs walk in with a presentation of where the company was, where it is now, and where it’s headed this quarter and in the years to come. They tell the board what’s working but they’re also transparent about what isn’t and how they’re addressing it. They present a fully formed plan that the board can question, object to, or try to modify. Things might get a little heated, a little bumpy, but in the end everyone walks out of the meeting understanding and accepting the CEO’s vision and the company’s path forward.

Then there are the great CEOs. With great CEOs the meeting is smooth as butter.

Even the best CEO cannot stand alone, untouchable, unchallengeable, accountable to no one. Everyone needs to report to someone, even if it’s a two-person board that you meet with for an hour every few months.

There always needs to be some kind of pressure-release valve. There always needs to be someone who can shake their head and give it to you straight.

And if you do it right, you should never be a victim of your board. As CEO, you help to shape it. Boards always change based on the CEO—the board under Steve Jobs was different from the board under Tim Cook. Boards complement a CEO’s strengths and no two CEOs are alike.

There are going to be surprises no matter how well you know a company. Learning about them early is challenging because employees, even at the highest levels, are reluctant to share troubling information. Learning what you need to know requires rigorous questioning while conveying in a compelling way that you absolutely want people to speak openly.

A CEO coming in from the outside needs to emphasize getting a good fix on the full range of business operations, the strengths and weaknesses of the leadership team, and the nature of the culture.

Building strong relationships with your board members is another top priority of a new CEO. Yes, you’ve gone through an intensive interview process with them, and they’ve just selected you. But in the words of one CEO: “You won't know if you were selected by an inch or a mile.” Some directors may disagree with your vision and plans; some may even be dead set against you, but won’t share those sentiments with you.

Ann Hackett advises really engaging directors in ongoing problem-solving. “A CEO should share the biggest challenges and want the board’s thinking about them.” She’s seen some make the mistake of thinking “they have to have solved everything, and they shouldn’t bring problems to the board.” But for the relationship to work optimally, “you have to be able to go to deep places and challenge one another.” You want to be doing all you can to ensure that the board is, as she put it, “a learning organism.” She recommends regularly providing them high-quality information about what the company, and the industry, is facing. Also help them “get close to the business and customers,” which a CEO can facilitate in many ways, such as by setting up factory visits or meetings with members of the management team. If you do this extra work, she advises, “then a board thinks differently about everything they’re doing. Governance becomes more strategic. Risk becomes more strategic.