The leading of leaders in the boardroom.

• Author: Spahn, J. Jeffrey
• Position: Board Communication

Leading leaders requires competencies that are uncommon among most managers and directors. Fortunately, there is a proven process for greatly enhancing the quality of board conversations and decision making.

A NEW VICE CHAIRMAN calls over the weekend to insist that he must be designated as the replacement for the current CEO, immediately.... The morning newspaper reports that a multimillion-dollar service system has crashed, leaving clients vulnerable to financial losses across the country.... A director demonstrates his competitive drive and power by sabotaging approval of the new compensation system, wasting weeks of prolonged board discussion.

These are just a few of the possibilities that can keep a conscientious director awake at night, counting potential losses and lawsuits. The shame is that many of these nightmares could be avoided if the diverse viewpoints and talent of the board were fully realized, rather than lulled to sleep.

Despite the tremendous impact of boards on the smooth functioning of our public and private institutions, we still find that routine, procedure, and reticence muffle board deliberations more than heavy draperies and oak paneling. Staid discussions stand in stark contrast to the drama that occasionally flares up in public view. Ironically, the common inhibition of real dialogue actually causes crises to emerge. Lack of mutual understanding leaves the CEO and the board vulnerable to misperceptions of each other's intent, triggering unexpected and public eruptions. Polite reticence clouds key decisions in confusion or compliance, increasing the odds that risks and opportunities will be misjudged.

Fortunately, grudging agreement and clashing egos are not the only choices. Shouldn't the inevitable difference of opinion among diverse board members ignite creativity and raise intellectual capital? General Electric's board proves it can be done. Running on open, frank, and challenging conversation, the GE board earned the designation "Best Board in America" by Business Week. The directors credited Jack Welch with setting a tone that invites vigorous interaction. One director said that Welch created "a freewheeling environment" that encouraged directors to speak up.

Certainly, increased communication is easier to prescribe than to enact. However, success is not limited to a few cases in which a CEO's natural style tends toward dynamic dialogue. Every executive can learn to raise more intellectual capital by tapping into the power of different perspectives, rather than trying to tamp them down. A simple conceptual framework and two basic competencies can lead your board to more efficient and wealth-producing conversations.

Power of collective leadership

The problem is that most leadership theory and practice assume that leaders lead followers. Today, the dynamics of the boardroom call for leaders to lead leaders, not just followers. Nowhere is this more evident than in a boardroom populated by CEOs in their own right or civic leaders with significant...