The Definition of a Good Chairman
The duties of a chairman have increased in the recent times as well as the expectations. Shareholders and directors require to have a chairman that is passionate about his job on governance of the company and also very active in his roles. The relationship between the Chairman and the chief executive officer should be good to ensure the success of both of them. The two should be practice candor and transparency for them to be able to rely on each other. For the two parties to work in unison, they need to perceive that they hold contrasting positions in the company.
For a chairman to be effective, he should have good knowledge about the business he is in. He should be able to provide a constructive level of challenge to the senior management team. Moreover, the chairman should always ask relevant questions regarding various issues in the company. A good chairperson is always aware of the long-term vision of the company. He should be able to offer guidance to the organization while still helping to secure external resources outside the organization. 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. He should mainly offer support to the management team.
A chairman, however, should make sure that he devotes just the right amount of time to the roles he is supposed to take care of. 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. An experienced chairman should be able to understand other people’s feelings and also the company. Running the organization, bringing together the senior management team and other members of the organization are what describes an effective chairperson.
In case there is a big issue in the company, the chair should be able to dedicate his time to trying to solve it. While tackling the problem, he should always remember the set mission by the organization. He should be able to set aside his interests for the benefit of the organization; which includes helping to solve any of the problems around.
A good chairperson knows when and how to step down from an organization. He does not step down abruptly without any previous 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.
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