Fight Club
From boardroom battlefields to strategic summits - discover how my tumultuous first meeting transformed into a masterclass in effective leadership and governance. Dive into a firsthand account that explores the pivotal role of board dynamics in shaping an organization's success, and learn how embracing constructive conflict can forge stronger decisions and a more unified vision.
By Mary Cameron
Mary Cameron is the chair of Habitat for Humanity International, chair of a private lumber company and sits on two other boards. She has served on over 40 public, private, crown and not-for-profit boards. She’s also a former CEO of three different private companies and a former deputy minister.
It was my first board meeting of a company I had recently joined. The onboarding had been thorough. I was looking forward to the first meeting with eagerness and positivity, ready to engage.
The CEO started the meeting with an overview of the business. They covered the economy and the challenges facing each of our divisions. They then brought in one of their vice-presidents to give the more detailed version. And the atmosphere in the room suddenly changed.
One of the directors had been in the industry for many years. They started questioning the assumptions and the information. It quickly moved from questioning to interrogation. The CEO jumped in, and the fight was on! It became a contest. It was about who knew more about the industry and the motives of one of our competitors. At times, it became comparing who knew more about the industry and past events.
I had heard before about the acronym NIFO - Nose In Fingers Out, to describe how a board should provide oversight without managing the day-to-day operations. Well this was diving deep into the operations, people, and processes of the company. The director started arguing about changes that had been made to the business years ago. The conversation then turned to questioning the budget assumptions and personnel allocation. This was based on two very different views of the business model and what it should be.
As a new director, I had no idea who understood the business better. But, I did know that these were not the board conversations we should be having. It was personal, argumentative, and zero sum. I did not think I could or should stay on a board that had a normal practice of being confrontational with staff. It brought back bad memories!
I recalled my days in one of my CEO roles. I had the challenging job of reporting to a board that had a modus operandi of going on the attack with me and my staff. I would prepare the materials and lead the discussion to avoid directors attacking. But, they always tried to find fault with the management team. It was counterproductive and a truly uncomfortable experience for all. As a management team we went to great lengths to avoid any indication of weakness or doubt. I now realize this was a lost opportunity. With the right atmosphere and board, doubt and weakness are exactly what you want to explore in the strategy and the assumptions.
After this particular meeting, I spent a lot of time considering my options. I decided to approach the chair. We had a long discussion and realized that serious, long-standing relationships had led to the issues. They recognized that the behaviour from the director had been gradually deteriorating. We talked about the Board-CEO relationship and the board’s role. We also talked about the preferred way to interact. It's to create the environment and the motivation to grow the CEO and management team. It wasn't long before it was obvious to all. This included the legacy director. We needed to change. The legacy director transitioned off the board.
Within two years, we hired a new CEO. It was rewarding to see how far we had come as a board. We understood that no one is perfect. We chose our CEO with an understanding of their strengths and weaknesses. And a deep understanding that we were a key partner in their success. Now we are in the CEO building business!
Today in the boardroom, we sometimes have serious disagreements. They are sometimes quite heated. Our strategy discussions are filled with alternate points of views. We welcome these gritty discussions! They are not personal. They make us have stronger decisions. And, more commitment to those decisions.
At the end of the day, we know that the spotlight has to be on the CEO. They wear the mantle of the company’s success. The board has to create the environment for the management team to be bold and to flourish.
My key learnings from these experiences are:
- Don't Dwell on Past Glory. Board directors should avoid dwelling on past glory or engaging in one-upmanship. Such behaviour often indicates a need to reassess the board's role and its effectiveness.
- Embrace Constructive Conflict. Constructive disagreements are essential for a high-functioning board. Diverse viewpoints are crucial as they drive the best outcomes for customers, the business, and its management.
- Focus on CEO Development. It is imperative for the board to cultivate an environment that nurtures the CEO’s growth and success. This involves a deep understanding of how to effectively motivate and reward both the CEO and the managerial team in different ways.
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