How should a CEO communicate with the Board of Trustees?
**This article was originally published on December 7, 2023. We are including it this week as part of our series on the Board of Trustees.**
This article is written for CEOs, outlining how they can better manage their relationship with their governing board or the owners of the organization they run.
I was recently with a group visiting the newest ballpark in the NFL in Las Vegas, NV. The visit was hosted by the CEO of the Las Vegas Raiders, Sandra Douglass Morgan. Sandra was articulate as she spoke about her role as the CEO of the NFL team. At the end of her comments, she invited questions. I asked her, “Can you tell us how you manage your relationship with the people you report to? How do you align expectations? And how do you maintain healthy communication?” I would like to share her response here today because she made some great points we can learn from.
Align Definitions of Success
Sandra said she reports to the sole owner, Mark Davis. Mark is a billionaire who inherited the team from his father, the previous owner of the Raiders. Sandra said she makes sure her definition of success is aligned with the owner’s definition of success.
As a CEO, Sandra is knowledgeable and experienced, having a great idea of what success for the Raiders should look like. However, she is also wise to acknowledge that when the CEO’s idea of success differs from the owner’s definition of success, problems can occur. The two visions must come together.
If you are a CEO who has not aligned and continued to align your definition of success with your board or owners, I encourage you to give it utmost priority.
Adapt to the Level of Desired Communication of Your Governing Body/Person
The next idea Sandra conveyed is that different NFL owners like to communicate at different intervals. Her owner (Davis) likes frequent communication. She said, “In fact after I speak to you all, I will be calling him.” She shared that there are other owners who only want to meet once a quarter.
A CEO should get to know the owners and the frequency with which they like to communicate, and they must agree on how to facilitate reciprocal communication.
Make Yourself Comfortable With Their Involvement
Someone from the group asked Sandra, “Are you involved with hiring and firing head coaches?” She answered, “No, that’s mostly the owner’s decision.”
In a traditional board of trustees, involvement in operations by members of the board is often considered problematic, and the standard practice is that the board should have one employee: the CEO. However, there are exceptions. For example, we see many NFL team owners getting into the locker rooms and actively involved and hands-on with many key decisions. A CEO should understand before taking the job whether they are comfortable with the owners getting involved in the organization.
A CEO’s relationship with the owners or board is challenging when there is poor communication and misaligned expectations. Top leaders succeed as CEO because they not only lead an organization to success, they also maintain the skills, maturity, and emotional capacity to harmonize with sometimes demanding or disorganized boards/owners.
