How to manage a headstrong CEO

Managing a headstrong CEO can be a delicate balancing act for a chairperson and a board of directors. While the board wants to encourage visionary leadership it also needs to ensure oversight and accountability. “Addressing the challenge of a headstrong CEO requires a multi-pronged approach, encompassing very clear communication, well-defined roles, and the strategic influence of the people on the board,” says David Duffy, CEO of the Corporate Governance Institute. Start by creating more open channels of communication Organise executive and non-executive directors' sessions Make time for regular executive sessions without the CEO to discuss concerns and formulate a collective board standpoint. One-to-one meetings As the chairperson, establish regular one-to-one meetings with the CEO to foster a transparent and open relationship. Clear agenda Prepare meeting agendas ahead of time, allowing all board members to be well-prepared for discussions and preventing the CEO from controlling every aspect of the conversation. Involve facilitators “If communication remains a struggle, consider bringing in an outside facilitator to mediate discussions and help level the playing field,” says David Duffy. Define roles and boundaries Governance vs. management Reiterate that the board's role is governance and strategy, while management execution lies with the CEO. However, make it clear that strategy development should be collaborative. Feedback mechanism Develop a structured feedback loop to assess the CEO’s performance. Make sure it is comprehensive, objective, and periodically reviewed. Accountability metrics Clearly define key performance indicators (KPIs) for the CEO and tie these to his or her performance reviews and, potentially, compensation. Build a culture of collaboration Engage in team building Organise offsite retreats that focus on collaboration and team building among the board and executive team. Develop trust Trust is a two-way street. While you expect the CEO to trust your strategic input, make sure you are also showing faith in the CEO’s capabilities. Celebrate successes Positive reinforcement can be powerful. Celebrate when the CEO does well, and recognise the value they bring to the company. Be strategic in how you use your influence Leverage your expertise Use the various skills and experiences of the board members to make well-informed recommendations that are hard to dismiss. Seek third-party opinions If the CEO consistently challenges board suggestions, consider consulting external experts to provide an unbiased view. Gradual change If immediate strategic shifts are met with resistance, suggest pilot programs or smaller initiatives as a way to test new directions without committing significant resources. Be ready for tough decisions Know when to act If the CEO’s actions become detrimental to the company, be prepared for decisive action, which could range from a stern warning to a change in leadership. External help In extreme cases, engage legal and HR advice to ensure that actions taken are within the governance rules and regulations. Alignment with stakeholders Ensure that major decisions concerning the CEO’s role are in line with the company’s mission, vision, and—most importantly—shareholder interests. “Navigating the complexities of a headstrong CEO is not easy; it requires a tactical blend of diplomacy, governance, and strategy,” says Duffy. “As the chairperson, your role is pivotal in orchestrating this delicate balance. “Keep the lines of communication open, define roles clearly, foster collaboration, and be strategic in your influence. “Most importantly, remain prepared for tough decisions to protect the company’s long-term interests.”

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