In the world of organisations, it's crucial for the board and the executive team to be on the same page. But guess what? Sometimes, they just don't see eye to eye. In this article, we'll dig into why this happens, give you some real-life examples, and suggest a simple solution to make everyone's life easier.
The Disconnect Mystery
You'd think the board and the exec team would be best buddies, but that's not always the case. One big reason for this is that they have different "terms of engagement." In plain English, that means they're playing by different rules. When that happens, it's like they're speaking different languages, and that can create all sorts of problems.
Real-Life Problems
Let's take a peek at some real-world issues that pop up when boards and exec teams don't sync up:
Big Picture vs. Details: The board might be all about long-term strategy, while the exec team is busy with day-to-day stuff. That can lead to battles over where to put time and resources.
Risky Business: The board may play it safe, but the execs might be more willing to take some risks. This difference in risk-taking can make it tough to agree on important decisions.
Reporting Wars: The board might want detailed reports regularly, while the execs find it annoying and micromanaging. This can be a real source of tension.
What's Success: The board might think success means making the shareholders happy, while the exec team could be all about keeping employees happy and making things run smoothly.
Board Squabbles
Surprisingly, the term-of-engagement problem isn't just between the board and the execs. It can even be a thing within the board itself! You see, boards often have people from different backgrounds and mindsets, so they might have different expectations and ways of getting things done, even within their group.
The Fix: Let's Get On the Same Page
So, what's the answer to this issue? Well, here’s one way: both parties need to sit down and figure out their terms of engagement.
Chat It Out: Start by having a real, honest conversation between the board and the execs. Talk about what you want to achieve and what everyone's roles are.
Workshop Time: Organize some meetings or workshops where you can work out the nitty-gritty stuff, like who does what and how you'll communicate.
Write It Down: Make sure you write everything down. Having a clear agreement in black and white communicates you're serious about this and will help you avoid misunderstandings later on.
Keep It Fresh: Don't let these terms get dusty. Check in on them from time to time, especially when there are new leaders or when things change in the company.
In a nutshell, the board and the exec team sometimes don't see eye to eye, but it doesn't have to be that way. By recognizing the problem, giving real examples, and clearly laying out your terms of engagement, you can build a smoother path to success and a better working relationship. It's all about getting everyone on the same page and making teamwork easier.