Sharing Leadership on Corporate Boards: A Critical Requirement for Teamwork at the Top

Abstract

]Critical to the success of a high performance board is the ability of its directors to share leadership and to work as a dynamic team. Yet historically boardrooms have proven to be one of the most difficult places to build an effective team. Numerous factors work against boards operating as teams such as the small amount of time directors have together, limited access to critical information, and highly centralized approaches to board leadership. To overcome these challenges, this article highlights the approaches that boards can and should undertake to improve their effectiveness as an operating team. For example, boards can more carefully select directors based on their orientation towards teamwork and with an eye towards how their expertise complements fellow directors. Shifting from a CEO as chairman approach to a non-executive chairman model can foster the sharing of leadership and the promotion of a team orientation among directors. A leadership style on the part of the chair that promotes teamwork is particularly critical. Finally, evaluating boards as teams as well as careful attention to the overall size of the board and committees can encourage greater teamwork.