“It’s lonely as the CEO. You have no peer at the company,” said Jonathan Foster, who has sat on more than 40 boards, including six presently. “Everybody reports to you directly or indirectly. Offering that resource, that independent voice, some safe space, can be very helpful.”
Manage the relationship carefully by staying informed and attentive and “picking your spots,” instead of trying to get involved in everything, said Foster. Pick two or three issues you really want to be on top of.
When challenging a CEO's thinking, the way you frame a question can be as important as the concern itself. Acknowledge the work already done before probing potential risks or alternative scenarios, said Atkins.
For example:
“I'm sure you and your team have already thought this through and considered it many times, but as you game theory this forward, what are the things that might not happen as we plan it?”
“How have you thought about mitigating those things?”
“Can you walk us through how you're thinking about what a competitor might do here?”
How to use the Socratic method to coach a CEO
Most people, especially leaders, don’t want to be told what to do. Atkins prefers the Socratic method, which uses questions to help CEOs examine assumptions and consider alternatives rather than simply giving them answers.
Consider questions like:
- Who do you think has solved this problem well?
- Who do you admire? Which CEO? What company?
- How have others solved this problem in a way we can learn from and apply?
Why directors should use their networks to support CEO development
Effective CEO coaching extends beyond advice. Board directors can also help executives develop by connecting them with people whose experience and perspectives can broaden their thinking.
To be a good thought partner, you need to get to know your CEO as a person. What are they curious about, or what do they want to learn? Who do they admire or learn from? If you don’t know what resonates, you won’t know how to coach effectively.
For instance, if they’re an entrepreneur who admires Elon Musk, you might cite that he makes decisions with 60% of the information and encourage your CEO to make decisions with less certainty.
Supporting a CEO's professional development also means being willing to spend some of your own relationship capital to create opportunities for them.
“If they really admire Elon Musk, I am sure I can get to him,” said Atkins. “I would have to spend some relationship capital.”
We see that flex from Atkins, but her point remains: “That is part of what you do. You broaden their world. You help them have a network of other CEOs that they might learn from, or go to events that would enhance their growth and their stature and their prestige.”
Having access to people who can help your CEO or organization but not using it shortchanges your organization, she said.
“What normally happens is people have it, but they won't use it,” Atkins said about connections and access. “'Oh, I have to save my call for Satya Nadella [the CEO of Microsoft] for somebody or something more important.' Actually, no. That's part of what I bring to the board, the fact that I can reach out and get to Satya Nadella. The fact that I won't make the call but could make the call is not helpful,” she said.
For board directors, the value of a professional network ultimately depends on their willingness to put those relationships to work for the CEO and the organization.
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