The Definition of a Good Chairman
The role of the chairman has become high in profile and the expectations multiplied over time. Shareholders and directors require to have a chairman that is passionate about his job on governance of the company and also very active in his roles. For a chairman to be effective in his duties, he should have a good relationship with all the directors. These two offices should be able to have confidence in each other through means such as open conversations. The two parties have to understand that they have different roles for them to work together successfully.
It is crucial for a good chairman to be familiar with the industry he is working in to ensure maximum efficiency. He should be able to provide a constructive level of challenge to the senior management team. Moreover, the chairman should always ask relevant questions regarding various issues in the company. A good chair needs to know the mission of the board and how to measure the progress of the company. While still helping the organization by offering guidance, he should be able to acquire resources that would be of use within the organization. The position of the chairman does not allow him to run the company and he should be able to recognize that. His main role is to reinforce the directors and other senior officials.
A chairman does not have to spend all his time in the organization as his roles are not demanding. Since he does not run the company, he does not have much work. From time to time, he can walk around the organization and see how the employees are progressing and enquire about any challenges they may be facing. An experienced chairman should be able to understand other people’s feelings and also the company. A great chairman is defined by the ability to unite the directors and shareholders of that particular organization.
In case there is a big issue in the company, the chair should be able to dedicate his time to trying to solve it. While tackling the problem, he should always remember the set mission by the organization. He should be able to set aside his interests for the benefit of the organization; which includes helping to solve any of the problems around.
A great chairman should follow the right procedure when he is ready to resign from his duty. He suddenly does not step down from his position without any warning. The chair makes sure to effectively communicate with the shareholders and stakeholders about his decision to resign a few months before he leaves. This gives the organization to start looking for a replacement. The outgoing chair should take a few days to introduce his successor to the senior member of the company and pass on any relevant information.