The role of a chairman is primarily to lead the board
Especially when it comes to determining an effective strategy and achieving objectives, and the role of the CEO is to lead the company.
Many smaller businesses don’t have anyone in the role of chairman and so effectively the CEO/ MD handles the chairman role as well which leads to them missing an important element in the management of their business.
Why hire a chairman?
The CEO/ MD has a huge role in the running of their business without it being further added to. As well as overseeing all the operational activities such as recruitment, marketing, new business development, staff management and seeing clients, CEOs are also responsible for executing the business strategy, plans and policies established by the board.- and when the CEO is the business owner as well it means that absolutely everything of importance revolves around just one person.
Having someone in the chairman role can help – as well as helping to determine business strategy and objectives, the chairman can help organise the composition and working of the board, something which is crucial as small businesses start to grow.
A chairman will also try to ensure that the board (of whatever size) is using accurate information about the company’s performance and is identifying key trends. On occasions it may be that the chairman can shoulder some of the burden regarding stakeholder relationships and the public image of the company and of course he or she should build a strong working relationship with the CEO/ MD and act as something of a personal mentor and guide
If you’re considering whether a chairman could be applicable to your business, don’t think of the rather stuffy image that a chairman of a large business conjures up, think of someone who can provide you with support, guidance and mentoring as well as take some of the leadership responsibilities off your shoulders. A chairman is someone who can add real value to both you as an individual and your business.
If you would like further information about the benefits a chairman can bring to your business, please feel free to contact NXD and we will be more than happy to help.