A good chairman should act as a buffer between the CEO and other board members as well as investors, be neutral, understand the business, ensure that board meetings take place regularly and that the views of all board members are properly aired, insist that proper governance standards are met, and be well connected and able to help companies access customers, the right advisers and possible business partners. 

What is the role of a Chairman?

As someone who has spent time as a Director and a number of times as as Chairman and Non-Executive as well as Coach, Mentor, and Facilitator, I was interested to read an article about what is the role of a Chairman in Growing Businesses recently. Written by experienced CEO, Chairman and Non-Executive David Soskin, he makes a number of good points which I have used to develop my own view below:

My own view in summary

• Be neutral and independent so that they can act as a buffer between the CEO, other board members and play a key role in resolving differences.

• Have a broad understanding of business drawn from a number of successful businesses AND a good understanding of the specific business so they can be an effective sounding board for the CEO, without trying to do their job for them.

• Make sure that board meetings take place regularly and are focused on key strategic decisions to ensure the survival and growth of the business based on a proper assessment of options informed by both facts and a full range of openly expressed opinions.

• Ensure proper governance based on management accounts and papers setting out clear options with risks, benefits and costs assessed.

• Be well connected with potential customers, advisers and partners.

There is lot more detail on the subtleties I could and will one day discuss.  In the meantime if you want more detail, read David's original article here