Strategic Board Alliance

Building a strategic alliance between the CEO and the board is one of the key success factors for any organization out there.

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As someone who has been passionate about evolving and updating boardroom practices and mind-sets to better fit the needs of today's rapidly evolving environment, the topic of creating a true strategic alliance between the board and the CEO (including their management team) is very close to my heart. I have been studying this topic for quite a while now - and yet, given its complexity, I will never stop being a student on this topic (and many more!:)). In my student journey, one of the most important milestones was graduating from Wharton's Board Effectiveness Executive Program lead by the brilliant, Ram Charan (author of 'Boards that Lead'). His body of work has significantly shaped my thinking on what boardroom success in the future looks like.

As always, each one of us is a teacher and a student at the same time :) So here I am today with you in my role of a 'teacher' - sharing a few of the key insights from my daily work with CEOs and Boards.

The role of the board of directors has evolved significantly over the past years. Traditionally viewed primarily as a governance body, the board’s function is increasingly recognized for its strategic potential. When CEOs treat their board as a strategic asset rather than merely a oversight body, they unlock a myriad of benefits that can propel their companies toward sustained success and competitive advantage. Here’s why leveraging the board as a strategic partner is imperative for contemporary business leadership, along with practical tips and mindset shifts required to achieve this.

1. Enhanced Strategic Insight and Expertise

Boards often comprise seasoned professionals with diverse backgrounds, bringing a wealth of experience and specialized knowledge to the table. By engaging the board as a strategic asset, CEOs can tap into this collective wisdom, gaining insights that may not be readily available within the executive team. In order to do so, it is really important that the CEOs engage their boards early on in the strategic planning journey - while the ideas are not 'fully baked' and formed.

Tip for CEOs:

• Conduct Regular Strategy Sessions: Schedule dedicated strategy meetings that focus solely on long-term goals and opportunities. This ensures the board’s expertise is harnessed effectively for strategic planning.

Mindset Shift:

• Value Diversity of Thought: Practice radical openness and embrace the board’s diverse perspectives as a strength. Understand that varying viewpoints can lead to more innovative solutions and robust strategies. Bring half-baked ideas to the table to discuss with the board - in other words, ideas that still have 'room' to shaped by their input.

2. Improved Decision-Making

Strategic boards contribute to more informed and balanced decision-making processes. When board members are actively involved in shaping the company’s strategic direction, they provide valuable perspectives that challenge the status quo and prevent groupthink.

Tip for CEOs:

• Foster Open Communication: Encourage open dialogue where board members feel comfortable sharing their perspectives and challenging assumptions. This can be facilitated through informal gatherings or retreats.

Mindset Shift:

• Cultivate a Collaborative Culture: Shift from a hierarchical to a more collaborative approach. View board members as partners in the decision-making process, not just overseers.

3. Stronger Alignment and Cohesion

When CEOs cultivate a strategic partnership with their board, it fosters stronger alignment between the board and executive leadership. This alignment is crucial for the seamless implementation of strategic initiatives.

Tip for CEOs:

• Align on Vision and Goals: Ensure that both the board and the executive team share a common vision and strategic goals. Use vision workshops and collaborative goal-setting sessions to build this alignment.

Mindset Shift:

• Promote Shared Ownership: Encourage a sense of shared ownership of the company’s success. When board members and executives are aligned, they work more cohesively towards common objectives.

4. Access to Networks and Resources

Board members often possess extensive networks and valuable connections across various industries. By viewing the board as a strategic asset, CEOs can leverage these networks to forge strategic partnerships, attract top talent, and open doors to new markets.

Tip for CEOs:

• Leverage Board Connections: Actively seek introductions and advice from board members' networks. Establish a formal process for board members to contribute their contacts and industry insights to strategic initiatives.

Mindset Shift:

• Recognize Board Members as Strategic Partners: See board members not just as advisors but as strategic partners whose networks and relationships can be invaluable assets.

5. Enhanced Credibility and Investor Confidence

A board that actively engages in strategic discussions enhances the company’s credibility with investors and stakeholders. Investors are more likely to have confidence in a company where the board is seen as a proactive and integral part of strategic planning.

Tip for CEOs:

• Showcase Strategic Involvement: Publicly communicate the board’s strategic contributions during investor meetings and in annual reports. Highlight specific instances where the board's input has driven positive outcomes.

Mindset Shift:

• Transparency and Trust: Foster a culture of transparency where the strategic role of the board is clear to all stakeholders, building trust and confidence in the company’s governance and strategic direction.

6. Effective Risk Management

Strategic boards are adept at identifying and mitigating risks. Their diverse perspectives and extensive experience allow for a comprehensive assessment of potential threats and opportunities.

Tip for CEOs:

• Integrate Risk Discussions: Make risk management a core component of strategic discussions. Use the board’s experience to identify potential risks early and develop comprehensive mitigation strategies.

Mindset Shift:

• Proactive Risk Management: Embrace a proactive approach to risk management. See the board as an ally in anticipating and mitigating risks rather than as a body that only reacts to crises.

7. Long-Term Vision and Sustainability

A board that is engaged strategically can help steer the company towards long-term sustainability. Such boards are more likely to advocate for sustainable practices, ethical governance, and social responsibility.

Tip for CEOs:

• Prioritize Sustainability: Engage the board in developing and endorsing sustainability initiatives. Ensure that long-term environmental, social, and governance (ESG) goals are integrated into the company’s strategic plan.

Mindset Shift:

• Long-Term Thinking: Cultivate a mindset that prioritizes long-term sustainability over short-term gains. Recognize that the board’s role includes safeguarding the company’s future and its societal impact.

Conclusion

The benefits of treating the board as a strategic asset extend far beyond traditional governance. By harnessing the board’s strategic potential, CEOs can unlock a powerful resource that drives innovation, enhances decision-making, and ensures long-term success. To effectively treat the board as a strategic partner, CEOs should implement practices that facilitate regular strategic engagement, open communication, alignment on vision and goals, leverage of networks, visibility of the board’s role, integration of risk management, and prioritization of sustainability. Additionally, embracing the necessary mindset and culture shifts—valuing diversity of thought, cultivating collaboration, promoting shared ownership, recognizing strategic partnerships, fostering transparency and trust, adopting proactive risk management, and prioritizing long-term thinking—are essential for this evolution.

In today’s rapidly changing business environment, this strategic partnership is not just advantageous—it is essential for any company aspiring to thrive in the face of complexity and competition. CEOs who embrace this approach will find themselves better equipped to lead their organizations towards a prosperous and sustainable future.

About Heimann Cvetkovic & Partners

Leadership Alliance Advisory | Heimann Cvetkovic & Partners

We are an award-winning executive advisory firm working with ambitious and impact-driven CEOs, executive teams and boards across the globe. We do this by building a strategic alliance and becoming true business partners to our client's journeys.

We:

• … are NOT your average executive coaches. We are your CEO Advisory Team – your impact advisors and growth coaches. We don’t just observe on the sidelines - we immerse ourselves in your business and truly partner with you.
• … believe in a blended approach of coaching, advisory and mentorship. We don’t just ask questions. We challenge you. We share best practices and lessons learned from other CEOs. We offer options. Open horizons. We make the invisible - visible.
• … believe in a win-win world. A world in which CEOs can pursue growth and profitability while honoring their most precious resources: people and nature. We believe in the triple bottom line of People, Profit & Planet.
• … believe you are powerful beyond measure and here in this world and in this role to use your position of privilege, power and influence as a force for good. We guide you on how to continue to advance your business in a way that lifts all other constituents higher. How to design and nurture leadership alliances and identify win-win opportunities. How to create a world in which everyone wins.
• …believe that conventional CEO leadership needs to transcend way beyond the walls of the own organisation by creating leadership alliances with your C-Suite, your Board of Directors and your Ecosystem.

About the Author

Marina is an award winning Board advisor and CEO coach. She is currently a Co-CEO of Heimann Cvetkovic & Partners, boutique executive advisory firm.

Marina’s corporate background includes senior leadership roles such as Head of Finance, Head Executive Office, VP Strategy, Chief of Staff to the CEO in management consulting, financial services, executive search industry across Europe and US. In her last corporate role, she was the Vice President of Strategy and Chief of Staff to the CEO at Swiss Re, largest reinsurance company worldwide.

Marina is a member of the prestigious MG100 community alongside Dr. Jim Kim, Alan Mulally and other highly accomplished leaders and coaches. She is a member of the Forbes Coaches Council, Fast Company Executive Board and certified coach-supervisor in the EQ Coaching Certification program founded by Prof. Daniel Goleman, pioneer of emotional intelligence. Her work has been quoted and featured by UBS, Amex, Insurance Thought Leadership, ICF, Forbes and others. She is a TEDx speaker and founder, as well as a sought-after keynote speaker on leadership and boardroom related topics (WEF, The Conference Board Executive Conference in NYC, World Forum Disrupt, Global Insurtech Leaders Summit in NYC and others). She currently serves on the board of maruu in Zurich, Charterpath in London and Boarstrong in NYC.

Marina holds an MSc in Finance and is a CFA Charterholder. She completed postgraduate studies in Board Governance at Wharton, Cybersecurity at Harvard and Digital Transformation at Berkley. She holds a PCC (Professional Certified Coach) credential from the International Coaching Federation. She graduated the Institute of Excellence in Professional Coaching program in NYC and is also a certified coach-supervisor.

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Marina