What Defines a Good Chairman
The duties of a chairman have increased in the recent times as well as the expectations. Stakeholders expect to have an engaged, energetic Chairman who does more than managing corporate governance. The relationship between the Chairman and the chief executive officer should be good to ensure the success of both of them. Their relationship should be honest, transparent and they should be able to trust one another. The two parties have to understand that they have different roles for them to work together successfully.
For a chairman to be effective, he should have good knowledge about the business he is in. A good chairman should provoke positive challenges to the directors to improve various areas of the company. Whenever he needs information on particular issues, he should be able to ask the right questions. For a good chair to know the progress of the company, he should be accustomed to the mission and goals of the company. Offering guidance is a major role of the chair and finding new ways to purchase important resources for the company. It would be very disappointing if the chairman does not realize that it is not his job to run the business but to ensure that it is running well. 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. However, he should interact with the staff, customers, and investors from time to time. Like Mr. Hussain al Nowais, an excellent chairman can develop empathy with the business and engage with the people and any ongoing issues. Running the organization, bringing together the senior management team and other members of the organization are what describes an effective chairperson.
If the company runs in a crisis, the chair is supposed to intervene quickly and offer necessary guidance on how to deal with the menace. While tackling the problem, he should always remember the set mission by the organization. A good chair should always be selfless when problems arise until they are well resolved.
A good chairperson knows when and how to step down from an organization. He suddenly does not step down from his position without any warning. He is careful enough to hand in his resignation letter and inform the management team at least six months earlier. This will allow the company to have enough time to look for a successor. The outgoing chairperson gets an opportunity to hand over his roles to his successor.