Fostering a Strong Board-Management Relationship

Listen to this BoardVision^TM podcast episode to learn about the dynamics of board-executive relationships and what makes them effective.

In the November episode of the BoardVision podcast, “How Executives Should Engage with the Board,” NACD advisor Susan Paley spoke with Peggy Foran, chief governance officer, senior vice president, and corporate secretary of Prudential Financial and a board member at Orion Group Holdings, on what boards should expect from executives, how executives can effectively prepare for board and committee meetings, and the key elements that foster a strong board-management relationship.

Below is part of their conversation from the episode.

How can executives best present themselves and their information to the board?

I always say [that] if you have 30 minutes, do not speak for more than 15 because at the end of the day, you want a discussion. You can give pre-read materials, and hopefully they're not going to be voluminous; they're going to be focused. I'm a big believer of no slides. You go in and you say, “I know you all read the material. There are three things that I want to talk about, and I really would like your opinion.” Or, [you say], “I'm here to talk about our business, the three most important things are [the following], and I'd like your reaction.”

I think those tend to be probably the best presentations I've seen. The worst presentation is someone who comes in scripted for 35 minutes for a 30-minute conversation. You can almost see that they get annoyed that someone's asking a question at minute five. It's a board presentation. This is really for the board and board members should be free to ask questions. You have to expect that you're not going to get to the end of your presentation, so it's better to … be upfront [with] no script.

How can and should executives strengthen their relationship with the board? What is the key to laying a strong foundation for that relationship? 

Put yourself in their position—and no surprises. Some companies have board meetings four times a year, some have six, some have eight. But in between board meetings, how do you communicate? How do you make sure that there are no surprises if something might happen between this meeting and [the] next meeting?

Talk about it. Some boards have a discussion in the beginning with the CEO—or maybe the CEO [and] CFO with the board—a 30-minute discussion on how things are going: maybe talent management, maybe awards, maybe mountains that have to be climbed, or maybe potential regulatory actions or even lawsuits. It's an opportunity just to sit and talk. Directors are very good, and the good directors spend some 300 hours focusing on the company, but they're not living there. That's really the opportunity to be transparent [and] open, no surprises. “This is what I'm seeing, this is what might happen. What are your questions?” I think that does it.

Be honest. I mean, not only saying, “We did a great job,” but also saying, “We could have done a much better job on this in hindsight…. This was our strategy, but this is what happened. This is what happened with our competitors. It's what happened with our consumers….” The board has the right information, they know what to look out for, and they know the pluses and minuses.

Interested in hearing more? The full episode is available on Apple Podcasts, Spotify, YouTube, and the NACD website.