The Corlund Group LLC Senior Consultants for Executive Leadership, Governance Effectiveness, and Change Management











 

 

 

 

Governance: Evaluating CEO and Board Effectiveness


Sample Client Issue:
Assessing CEO and Board Effectiveness

The Board of Directors for a large insurance and financial services company wanted a review of its governance approaches, convinced that it was time to update them to be more consistent with "best practice" in industry in general. Interviews identified areas for improvement, and a facilitated meeting led to agreements for significant board restructuring regarding size, committee configuration, term limits, Board and peer evaluation, and other critical governance parameters. The first round of Board and peer evaluations were successfully combined with the convening of a new Governance Committee and coaching to individual Directors.

A long-tenured CEO ran a "tight ship." He had personally selected each of his Directors. Several held interlocking directorships with him; others were suppliers to the company and had a variety of financial dependencies on the CEO. When the time came for CEO succession planning and CEO performance evaluation, the Board needed outside counsel to help increase their objectivity about how the company was actually being led and how to manage the successor selection process.

A prestigious non-profit institution had hired a CEO with sharp analytical skills to turn around financial performance, and he made progress through a variety of cutbacks and repositionings. Yet after several years, repeated surprises suggested that some internal organizational issues were going unresolved. An assessment of the CEO's leadership effectiveness and the Board's governance effectiveness were needed to create a CEO performance management and evaluation process that would better match CEO behavior to current institutional needs.

Related Client Issues:
Updating Governance Processes
Assessing Potential CEO Successors

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