Role and qualities of a good chairperson coveted hot seat

perks and prestige normally accompanies the role. However, times have changed and the role has become more serious as chairpersons are now engaged on a full-time basis.
The financial crisis we had in the recent past triggered a review of corporate governance guidelines and, by extension, the role of the chairman.
Corporate governance codes have been amended to improve board effectiveness and increase accountability making the role of the chairperson one of enormous responsibility and accountability.
If an organisation performs well under one’s leadership, enormous perks golden if not platinum goodbyes await them when they eventually retire.
In a fair world, one should expect the exact opposite; however, this is not always the case as numerous times we have witnessed chairpersons of under performing organisations being promoted with elevated perks.
It is my humble view that Zimbabwean industry will not advance an iota if we continue to reward poor or non-performance of those tasked to steer organisations to the betterment of our economy.
For those aspiring to assume such roles, while it is a considerable honour, one should think long and hard about the strategic, financial and governance responsibilities they will assume.
Should there be a crisis or structural challenges, your competence and integrity will be questioned and you will be called to account.
It is not a major revelation that a properly functioning board can be a powerful force for a company’s success.
When a board is working effectively, its members should offer unbiased advice on a variety of topics, including strategic direction, partnerships, financing, acquisitions, human resource, engagement with suppliers and customers, governance and ethics.
Moreover, they will ensure sound corporate governance by forming appropriate structures and providing requisite oversight functions.
A board in disarray, on the other hand, can be a distraction resulting in missed opportunities and creating liabilities for a company.
The value of a good board cannot be underestimated, while on the other hand a bad board may be worse than not having one at all.
The Russian proverb “A fish rots from the head” comes to mind as I have yet to come across a highly effective board chaired by an incompetent and ineffective chairperson though I stand to be corrected or guided otherwise.
A chairperson’s competence and effectiveness is not just about qualifications but about leadership finesse and excellence, a trait that some argue one must be born with, but I shall not delve into the nature versus nurture debate at a later stage. An individual is nominated to the position of board chairperson for many reasons.
These include the person being an immediate and obvious candidate because of their history with the association, or having a particular area of knowledge, which makes them a natural choice.
Whatever the reason maybe, being an effective chairperson requires not a few but numerous interrelated qualities, traits and expertise.
As such there is need to have dialogue on how best to identify, discern, develop and nurture these essential qualities, traits and expertise.
Chairpersons as leaders of both management and the board should embody the willpower and ability to steer the organisation in the direction where it meets its mandate.
Under willpower, we are looking at issues such as leadership qualities, integrity, personality traits and under expertise. We are talking about technical competence, industry experience, financial acumen, just to name a few.
At this juncture I ask the question, does your board/organisation have an effective chairperson?
Before you answer, let us look very briefly at some of the qualities and or abilities that an effective chairperson should have. The individual who sits on the coveted hot seat should have the ability to lead and inspire others, effectively leading the entity’s board and harnessing input of directors.
Lucrative results of a functionally rich organisation are attained through proper harmonisation of the board.
One might wonder if it is possible to reach such levels. The answer is yes. If a chairperson is to take on a pivotal role in building a healthy board, which fosters cohesion and teamwork, people will be motivated to good performance.
The list of the qualities that a chairperson should personify is not exhaustive, the need for a discussion on the effectiveness of chairperson stems from the urgency to address how best to enhance the proper functioning of businesses in this dire economy of the credit crunch and changing global trends.
A chairperson should strategise in conveying effective ways of conciliating amongst entity directors in order to lead the board in discussion, reasoning and decision making.
It is essential for a chair to proficiently harness the skill to draw the threads of a discussion together so that directors efficiently apply their minds to the issues.
Moreover, being able to build rapport amongst the board members will allow the chair to discern the strengths and weaknesses of board members and harness their myriad qualities for the advantage of the entity.
Having the ability to facilitate rigorous decision-making is vital for a chairperson to deal with conflict within the board. Making sure that board members operate as a team as well as encourage creative tension between them leads to effective debate in the boardroom.
Chairpersons should always ask themselves whether they are living up to dictates of their role.
Is your chairperson investing adequate time in your organisation or are they merely attending meetings?
Is the board passing strategic resolutions or is the board meeting to drink tea and eat biscuits?
Is your chairperson challenging consensus or are they allowing board members to take a passive position, agreeing and disagreeing with everyone?
A chairperson should epitomise an in-depth understanding of his or her rights and duties when chairing both board and general meetings this includes knowing what should and should not be on the board agenda.
A chair should be able to separate his or her role with those of the chief executive.
With this in mind, I implore you to ask and answer. Does your board have an effective chairperson and if you are leader “why should anyone be led by you?”
NB: Join Mr Trust Chikohora and Canaan F. Dube on February 23 2012 at Rainbow Towers as they explore the role of chairperson at a seminar tailor-made for chairpersons, directors and senior executives.