Organizational Alignment and the New CEO
I use an analogy that no one gets. It is this, said in conversation when I am trying to make sure someone is telling me exactly what they want: “Ok, I have moved the couch a couple of times, and the couch is heavy. Can we agree where the couch should go before I move it again?”
Let me describe the largest couch I have been asked to move: when a board hires a new CEO.
The board believes they know where they want the couch. So, you put it there (find them candidates such as they describe, which almost always include the words “change agent”). But upon interview, the “change agent” feels dangerous, risky. And then you need to move that couch that only fits four, but now with a whole lot more people sitting on the couch.
I have seen couch-moving when filling other roles, but it happens most often when hiring a new CEO. I was lamenting this dynamic to Laura Thrall, who immediately said, “I know about the couch. I have been the couch.”
Laura Thrall, CEO of Epilepsy Foundation of America
Laura has a long career in the CEO seat, having served at four different social good organizations in that capacity: the Epilepsy Foundation of America, CureSearch for Children’s Cancer, United Way of Metro Chicago, and the YWCA of Metropolitan Chicago. We discussed the dynamic of a board thinking it knows what kind of CEO it wants, only realizing later that it doesn’t.
Laura expanded, “Volunteers join nonprofit boards for a lot of reasons. Maybe it’s a personal connection, a passion for the mission, or a desire to give back. Maybe it’s a resume builder. Maybe it’s even a donor wanting influence over the use of their gift. Maybe it’s a representative from a chapter. It can be a lot of things that get them there.
“Unfortunately, that means that nonprofit boards are often populated by people without a consistent and high level of business acumen. That can extend to a lack of clarity and understanding of staff versus board roles. Sometimes they view the organization and mission through a narrow lens—their own, and then personal goals supersede organizational goals. If the board member represents a chapter or affiliate, that entity’s goals may supersede the goals of the organization at large. There are so many different hats people are wearing at the board level.
“Taken together, that can mean that the board is not aligned and yet trying to hire a new CEO. It means that every person on the board may want the couch in a different place. Finally, it means that no matter who is hired, they will displease a significant portion of a non-aligned board.”
What to do?
The four different boards Laura has served, and multiple boards she has served on, led her to these ideas on how to create an aligned board that can both hire a new CEO and support the CEO’s work toward mission fulfillment.
She said, “Preferably in advance of a CEO search is the time to create alignment. Barring that, do it during the new CEO’s onboarding or following the election of multiple new board members. It should happen in advance of strategic plan development. And it should be checked periodically as a governance exercise. ‘Are we aligned?’ the board must ask itself, again and again.”
What is the process for aligning the board? Laura recommends this guided process which will both build consensus about the direction of the organization and clarify the expectations of board members and the C-suite.
Process to Create Board Alignment
Level Set
Consultant builds an understanding of the organization, outlines the process for participants, and conducts a series of interviews.
Review relevant literature.
Board presentation regarding process, tasks, and deliverables.
Set expectations of board members.
C-Suite presentation and/or conversation regarding the process, the tasks, and the deliverables.
Set expectations of C-suite employees
Board member, C-Suite, and stakeholder interviews
Tasks/Action Steps
For additional information to further inform the alignment process:
Mission Statement review and clarification
Constituent identification
Brand positioning
Environmental scan – the world has changed!
How is the organization adapting and taking advantage of these changes?
What are the new opportunities and/or barriers in the changed landscape?
How is the organization embracing and using technology?
Is the organization structure still relevant and effective?
Board Accountability
Define fiduciary obligations
Are director responsibilities clearly articulated, measured, and attained?
Access to key organization information and knowledge level
Is the board getting the critical information it needs to make informed decisions?
Is the board accountable for accessing and ingesting key information?
Conflicts of interest and confidentiality
Transparency scan
Board/CEO Relationship
Are reporting and accountability structures in place?
Are periodic reviews scheduled?
Is transparency established?
Healthy and functional?
Communication channels – appropriate and transparent?
Information flow from CEO to Board at large
Information flow from Board to Organization at large
Deliverables:
Assessment – Current State, Desired Future State
Actionable Recommendations – What are the gaps in alignment, and how can the board reach consensus on the role of the CEO and actively communicate it to stakeholders?
Board Role – Summary of responsibilities: clarify board roles and interactions with CEO/C-Suite
CEO Job Description (If preceding a search/or clarification of existing role)
And there it is: at the end of a process that would make strategic planning easier, make roles better understood, clarify processes, and establish transparency.
Laura Thrall helps me only move the couch one time.