When the chief executive conflicts with the board, it is usually the chief executive who loses. If not handled well, this conflict can factionalise the board, creating intra-board conflict as well. It can also be expensive financially, leading to loss of organisational momentum, increased staff turnover, strained relationships, and damaged careers and reputations (both individual and organisational). Board members should remember that the chief executive has more to lose than they do – their career, perhaps even their livelihood.
Such conflict is usually preceded by small conflicts that are poorly handled. Once these take root, it can be difficult to resolve them. Prevention is the best cure. Often this lies in clear role definitions and performance expectations, regular performance evaluations, and good policy, for example a disputes resolution policy.
Boards should avoid a battle of wills and wiles. Unbiased, external assistance is often the best option.