CHICKEN & EGG
After the unprecedented upheaval of the pandemic years, life is certainly not getting any easier. Boards face a new set of challenges in an era of higher interest rates, the cost-of-living crisis and intense competition for talent. Indeed, relatively recently retired CEOs, who are now frequently serving as Chairs, recognise that within a 5-year time horizon, the complexity facing companies and therefore CEOs has arguably increased at least five-fold.
For any organisation the CEO provides the key leadership role. It is very difficult for a company with a weak CEO to succeed, certainly over a longer period of time. Prioritising this appointment clearly makes sense. But it should also be added that a good Board is much better placed to make a good CEO appointment.
In all of Fidelio’s assignments – both Search and Evaluation – we see a strong focus on aligning Board composition to the needs of the business. This clearly supports the Board in its oversight of the business, as well as approving strategy and monitoring implementation. But a key point is often overlooked – a Board that understands the business, as well as its future potential, is much better placed to support and guide the CEO, and also to determine and oversee CEO succession.
Fidelio’s focus is building Board capability to drive value and getting the CEO appointment right is frequently the Board’s greatest contribution to the value equation.
To continue reading 'Strong Board / Strong CEO', please click here.