IDsquared

The Non-Exec Chairman role in a Small, Growing Business 7 January, 2008

The role of Non-Exec Chairman is an interesting one in any business.  The relationship with the Chief Executive or Managing Director is an absolutely vital one; the Chairman should be a mentor to the CEO and should support their personal and professional growth along with that of the business.  The CEO must be able to rely on their Chairman to channel their enthusiasm and business drive without stifling it and it should be an open relationship with free-speaking and confidentiality in all areas.

On the other hand, the Chairman is by no means just the man behind the CEO.  They must both lead the company together, though in different ways.  It has been suggested that the Chairman should set the ethics and philosophy of the business while the CEO sets the direction and the pace of development.  This fits very well with another key role of the Chairman; that of ensuring the executive team don’t lose sight of the goals they set themselves.  Being a non-executive member of the Board allows a Chairman to rise above all but the most demanding day-to-day crises and focus on the longer-term strategy of the business.

Having said all of this, a Chairman should have a healthy dose of humility about them and should be able to lend their support to the CEO and the rest of the team in very practical ways as well.  The Chairman must never be taken for granted or have their precious time used frivolously but there’s no better way to get to know the reality of a business than to spend some time with customers and suppliers (and if they can make a sale or negotiate a discount while they’re about it then what better way to prove their worth!).

If you would like to discuss a Chairman role then do please give us a call or drop us an e-mail.  You may find useful some of the other information in our blog, which you can search, or in our main site (through the links above).