A board must be managed: Many chief executives, especially first-time leaders, get this wrong. Hcrc is what needs to happen for effective CEO-board interaction. BY RANDY THURMAN.

• Author: Thurman, Randy
• Position: BOARD LEADERSHIP

THERE IS SCARCENESS Of 'ready now' CEOs to fill the numerous opportunities that exist in many industries (certainly in my industry of healthcare technology and services). As a result, there are many first-time CEOs who lack real board experience. Many are coming from senior executive positions where they may have occasionally participated in board meetings. But many have never been a CEO, sat on the board, or been responsible for the many aspects of managing their directors.

CEOs must manage their directors. This may strike some as a strange statement. And, it many offend some directors who would ask, "Why do we need to be managed?" Let me offer a few examples.

Case 1--The Sparse Communicator

The company was a publicly traded medical technology business. The founding CEO retired and was replaced by a senior general manager from a global, medical technology company. The executive brought to the company many of the needed skills and quickly assimilated to the operational role. The board was typical. Several early retired executives with financial and operational experience. The retiring CEO left the board as, in my opinion, most retiring CEOs should. There was an independent chairman of the board and the new CEO was on the board.

From the start the communication from the CEO was sparse at best. Directors weren't kept informed of key initiatives. Board meetings turned into working sessions because the preparation was inadequate and surprises were not unusual. Board members, including the chairman, felt at a distance and uninformed. Persistent effort was made to encourage the CEO to provide regular communications, but to little avail.

Ultimately, out of frustration, the chairman chose to not stand for reelection. Even with a new chairman, communication from the CEO was inadequate. Ultimately the company was acquired. To my knowledge it was the CEO's last such role. Any endorsement he would get from the board would clearly indicate his inadequate communication with directors.

Case 2 Different Languages Spoken

The company was a fully commercialized services business owned by a financial firm. The CEO had recently been brought on to stabilize the business following a difficult merger and to accelerate the profitable growth of the business. The CEO had experience in staff and operational roles with large corporations and had one prior general management role in a privately held company.

Here is a common theme. The investors who owned the company...