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The first month as board chair is critical for establishing strong governance and setting the tone for board effectiveness.
Building constructive relationships with the CEO, directors, management and key stakeholders ensures trust, alignment and clarity.
Thorough preparation, focused meetings and regular reflection help the chair drive accountability, continuous improvement and a high-performing board culture.
The board is responsible for the overall governance of an organisation and, as chair, you will lead and support that work. The first month is your opportunity to get to grips with your new responsibilities and set yourself up for success.
“I liken the role of chair to an iceberg,” says Catherine Brenner FAICD, chair of Australian Payments Plus and a director of companies including Scentre Group and Djerriwarrh Investments. “Even if you’ve sat on many boards, you can still be surprised by how much ice sits below the waterline.”
This practical guidance from three experienced chairs will help you make the most of those early weeks.
1. Establish a relationship with your CEO
A productive relationship with the CEO is critical to effective governance.
Giselle Collins GAICD, non-executive director and chair of the audit committee at Generation Development Group, emphasises asking open questions such as whether the CEO feels confident about the way forward.
“Along with conversations about risk, strategy and performance, you need to find out about your CEO’s priorities and frustrations, and what the executive team hopes to gain from the first meeting,” says Collins, also former chair of Hotel Property Investments, Pacific Smiles and the Responsible Entity for AMP’s managed investment schemes.
“I’ve found that open questions, such as whether the CEO feels confident about the way forward, help to build trust by showing you’re genuinely interested in what they have to say.”
That doesn’t mean you should aim to be best friends, she adds.
“If the relationship is too close, the board can feel the decision has already been made without the requisite board discussion.”
2. Other people to contact
Your first month should ideally include informal chats with each director. According to Brenner, it’s important to understand each director’s priorities, expectations, perspectives on the company and ideas of what makes an effective board meeting.
“You can then discuss this with the CEO, so you understand the common ground and the gaps between board and management,” she says.
The chair usually engages with the executive team through the CEO, although managers will join a board meeting from time to time.
“It’s important executives feel they have a voice to the board and it’s safe for them to speak up,” says Jason Preston MAICD, executive chair of McGrath Nicol and president of the Turnaround Management Association. “This gives the board an opportunity to ask probing questions of someone who is usually closer to the detail than the CEO.”
Brenner considers it appropriate to meet members of the management team individually, but only with the CEO’s blessing. She also advises introducing yourself to stakeholders, such as shareholders and regulators, and prioritising a conversation with the company secretary.
“As chair, the company secretary is one of my closest relationships,” she says. “We’re in touch regularly to discuss the logistics of a meeting and also the sequencing of the agenda, as there can be last-minute changes.”
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3. Prepare for the first board meeting
A conversation with the CEO about the agenda will help you to prioritise key issues and plan how time is allocated for each topic, says Preston.
“It’s your job to ensure the CEO is presenting the directors with clear, concise and accurate papers in time for them to give the contents proper consideration. You need to read the papers more critically than you did as a director, looking for gaps in information, inconsistencies and unnecessary length. If there is a topic that relates directly to an executive director’s area of responsibility, make sure they’re aware in advance so they don’t feel blindsided in the meeting.”
4. Keep the meeting focused
Overall, your goal is to keep the meeting focused, encourage input from all directors and manage any conflicts constructively. How you do this will depend on your personal style, which, as Brenner notes, develops and evolves over time.
“You can set your expectations in the first meeting, but I’d make it clear you’ll be testing them and learning as you go along,” she says.
If yours was an internal promotion, the board will have factored in your contribution as a director, says Preston.
“It’s important to stay broadly consistent with the behaviours and standards you’ve already set,” he adds.
To round off the meeting, you’ll need to summarise the discussion, according to Brenner.
“This is one of the most challenging tasks,” she says. “You have to listen carefully to everything that’s said, then distil this into clear next steps.”
5. Following up and reflecting
Constructive feedback is the backbone of continuous improvement, says Collins, adding it also helps to build mutual respect and collegiality.
“I have confidence in my chairing ability, honed from the many twists and turns that board affairs throw at you, but I’m always looking for ways to improve,” she says.
“I welcome feedback at any time and it’s particularly valuable in the board-only session we hold after every meeting, while the discussion is still fresh in our minds. We reflect openly and considerately on whether we covered everything appropriately, whether there are any lingering concerns and whether we’re all comfortable with the way management is executing on the strategy. It brings us together as a team and ensures we’re all facing the same way.”
Before the next meeting, diarise regular, structured conversations with the CEO, says Preston.
“You need to stay in touch with progress on agreed actions, so you’re both clear and aligned when they go to the board.”
Enjoy!
You will learn a great deal in your first month as chair, but how can you evaluate your success?
“I can’t stress enough that enjoyment is a powerful performance indicator,” says Collins.
“When people are enjoying the meeting, they’re motivated, prepared and accountable. There’s an extra level of engagement and the group functions as a whole. That’s when the board is at its best.”
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