Creating a thought partnership

Chairs and CEOs who enjoy well-functioning relationships have a unique partnership built on mutual respect, trust and strong, open communication. However, these partnerships are not without challenges and some healthy tension.

Finding the correct balance between support and accountability in the chair/CEO relationship is important for the successful functioning of the board, and the entire organisation. If the relationship is either too close or too combative then accountability can suffer, and the functioning of the board can be compromised. 

The relationship between the chair and CEO is symbiotic, with each relying on the other for mutual benefit. Speaking at the recent Chapter Zero NZ breakfast: climate change collaboration between the board and CEO, Genesis Energy Chief Executive Malcolm Johns said balancing short-term pressures and long-term objectives can be one of the most difficult areas to navigate, especially when a lot of the non-negotiables can be unspoken.

Johns said what is needed, particularly in managing climate change, is a ‘thought partnership’. 

Such a partnership is based on complementary expertise, knowledge and skills that stretch each other’s perspectives and viewpoints. It adds value to both the chair and CEO roles, challenging each other’s thinking, encouraging innovation, supplementing knowledge and ultimately helping to create value. When the board is part of a partnership with the CEO, it helps set the tone from the top and builds trust.

“A strong thought partnership enables you to pivot when you need to without losing sight of the long-term goals,” said Johns.

CEOs and their boards face a mix of headwinds and tailwinds, short-term and long-term objectives and pressures, and risks and opportunities. Having a thought partnership recognises the symbiotic relationship and that the collaboration that comes out of this approach brings greater problem solving and mutual learning.

The concept of a thought partnership recognises the need to remain nimble and agile, especially when meeting targets, accepting you may need to sacrifice a short-term goal to ‘keep the lights on’, but that doesn’t mean you have abandoned the overarching objective. “If you set an objective for the future with binary stepping stones, you’ll trip up,” said Johns.

The demands and pressures organisations are facing are extraordinary – financial pressures, productivity, climate change, AI, cyber security, geopolitical uncertainty and more. Creating a thought partnership, rather than simply providing thought leadership, can help CEOs and boards to navigate these challenges together.

Considerations for directors

• Be a sounding board for ideas – test and challenge their thinking and bring your own perspective to stretch and fine tune thinking and generate creative ideas
• Share your expertise and insights to supplement their knowledge and help with problem solving and innovation
• Don’t just hear the message but listen to what’s behind the message – what are the concerns, challenges, or opportunities 
• Help filter their ideas through a strategic lens
• Connect regularly to develop a thought partnership based on reciprocity, trust and openness