The Most Important Relationship in the Boardroom

You hear everyone speak about strategy, how they are transforming their business, how AI has changed their lives and all the rest. There is, however, one important determinant of organisation success that seems too often to be a stone left unturned: the relationship between the CEO and the chairman of the board.

It may seem an intangible factor or perhaps something that goes unnoticed when the CEO and chairman are aligned, but when that relationship breaks down, everyone notices.

Over my 30 years of working with boards, CEOs, leadership teams, and investors, I have seen many instances where CEO-chairman discordance has affected wider business functions. The sad part is that it is rarely about lack of capability with either party, but more because dynamics aren’t managed:

• Supporting versus challenging

• Trust versus oversight

• Execution versus governance

Understanding the Relationship

Perhaps the key to relieving friction is understanding. Let’s see how the CEO and chairman should match up.

Different Roles; Shared Responsibility

• CEO: responsible for leading the organisation, executing strategy, building the leadership team, and ensuring performance.

• Chairman: responsible for supporting the CEO, facilitating board effectiveness, and protecting the long-term interests of shareholders.

In theory, the distinction is clear, but in practice, it rarely is. The best chairmen understand that their job is not to oversee the day-to-day operations, and the best CEOs understand that advice and questioning about direction is not opposition. Problems emerge when those boundaries blur.

Trust before Performance

Every successful CEO-chairman relationship I have encountered has been built on trust. Not blind trust, but the kind that allows for:

• Questions

• Support

• Difficult conversations

• Disagreements that don’t define the dynamic

This level of trust needs to be deliberately built, which is why it puzzles me when good CEOs and chairmen build their working relationships only on good intentions and assumed alignment.

Why the CEO-Chairman Relationship Matters Now More than Ever

Two key considerations stand out:

1. Boards are navigating AI adoption, cybersecurity threats, greater geopolitical uncertainty, regulatory scrutiny, talent shortages, and activist investors, all whilst balancing increasing stakeholder expectations.

2. CEOs are asked continuously to adapt businesses to these challenges, to transform organisations at faster rates, and to deliver growth in increasingly complex environments.

More complex challenges mean there is a need for fewer internal roadblocks. If the gears start grinding at the top, problems can soon accumulate, even if the rest of the business is a well-oiled machine.

How to Create a Great Partnership

Cementing a great relationship with your CEO or chairman takes time, but I have found that most successful partnerships have a few things in common:

• They communicate frequently, not just before board meetings.

• They establish boundaries early.

• They challenge one another in a constructive way.

• They focus on organisational outcomes and put ego to one side.

• They recognise they are on the same team.