What to Do When the Chairman is the Problem
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Dealing with a chairman who displays dominant behaviour or engages in aggressive conversations in the boardroom can be incredibly challenging, given the unique role that the chairman plays in a company. As the most senior executive of the board, the chairman is accountable to shareholders, key stakeholders, and other board members, making it crucial to handle this type of situation with care and good governance practices.
The first step in dealing with a chairman who regularly engages in dominant behaviour is to recognize that this type of behavior can have a negative impact on the company's culture, morale, and productivity. It can have a significant impact on board meetings and create a less-than-ideal environment for decision-making. It is essential to address the situation proactively and engage in open and transparent communication with the chairman and other board members.
One of the most effective ways to manage this situation is to engage in good governance practices. These practices ensure that the board of directors operates with integrity, accountability, and transparency, which can help mitigate the effects of a chairman's dominant behaviour. For example, the board may engage in regular evaluations of its performance, review its governance policies and procedures, and engage in ongoing training and education.
If the dominant behaviour persists, it may be necessary to engage in more formal procedures. For example, the board may establish confidential channels for reporting concerns or complaints or engage an independent third party to investigate any allegations of inappropriate behaviour. In some cases, it may even be necessary to remove the chairman from their position, although this should only be done as a last resort and in accordance with the company's governance policies and procedures.
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It is also essential to consider the impact of the chairman's behaviour on other board members, senior executives, and employees. Robust conversations are an integral part of the board's decision-making process, but they should always be conducted with respect and professionalism. If a chairman's behaviour is causing other board members or employees to feel uncomfortable or intimidated, it is essential to address the situation immediately.
When discussing the situation with the chairman or other board members, it may be helpful to use alternative descriptions for bullying, such as dominant behaviour, assertiveness, or strong personalities. This approach can help to depersonalize the situation and avoid unnecessary conflict.
In conclusion, dealing with a chairman who displays dominant behavior can be complex, given their unique role in the company. However, by engaging in good governance practices, addressing the situation proactively, and using alternative descriptions for bullying, it is possible to mitigate the impact of this type of behaviour and ensure that the board of directors operates with integrity, accountability, and transparency. It is important to remember that every situation is unique, and it is essential to approach each case with care, professionalism, and a commitment to good governance.