Yet CEOs can't just demand that board members engage more closely with them. âYou have to lead the board,â Piyush Gupta said, âand persuade them of the direction you want to take the company, but at the same time, they are the bosses. Itâs not straightforward.â Further complicating the relationship is that the CEO generally does not know who on the board supported them for the job and who did not.
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Strong management of board and shareholder expectations and perceptions is critical. Indeed, often the core problem is the perception of performance, which makes powerful and highly persuasive communication with the board, shareholders, and analysts a CEOâs priority. One director told us, âEven when you think youâre communicating too much, youâre probably not communicating enough.
As Piyush Gupta reflected, âAs CEO, you never get told the full truth. Everybody puts a spin on information by the time it comes to you.
Alternating between internal and external demands is only one way CEOs must learn to divide their time and energy. They also have to focus on the urgent here and now and on longer-term plans. In addition, they must be in command of the âhard stuffâ of numbers and devote considerable time to the âsoft stuffâ of people management. Also crucial is striking a balance between taking decisive charge by quickly making some moves and engaging in learning more about the company. All require both/and thinking rather than either/or thinking. As skilled as leaders may have become in this over the course of their careers, the challenges of the Launch stage greatly up the ante on getting the balance right. Carol TomĂ© pulled off this balancing act with aplomb.
Building strong relationships with your board members is another top priority of a new CEO. Yes, youâve gone through an intensive interview process with them, and theyâve just selected you. But in the words of one CEO: âYou won't know if you were selected by an inch or a mile.â Some directors may disagree with your vision and plans; some may even be dead set against you, but wonât share those sentiments with you.
Board relations is another area where the new CEO can do deep discovery work to find out how the board operates. The âsocial systemâ of each board is greatly complex. Particularly tricky are boards in which directors have been working together for many years, with some in their seats for over a decade. Theyâve had many debates among themselves and disagreements about all manner of issues. They have strong opinions about the prior leadership of the company. Often a few key influencers act like a board within a board.