#5: The Overlooked Growth Lever — Board Effectiveness
A CEO once confided in me after a board meeting: “That felt like a waste of time. We spent two hours reviewing financials, half the room barely spoke, and no one challenged our strategy.”
That board wasn’t broken. But it wasn’t effective either. And ineffective boards are silent killers of enterprise value.
Here’s the reality: 70% of CEOs rate their boards’ overall performance as poor (PwC). Even more concerning, 40% of executives say their boards don’t fully understand the line between governance and management.
When the board is disengaged, reactive, or misaligned, the company loses one of its most powerful assets.
Why Board Effectiveness Matters to Enterprise Value
A high-performing board doesn’t just oversee compliance—it sharpens thinking, manages risk, and accelerates growth.
But when boards underperform, CEOs feel the drag:
- Strategy discussions stall in operations.
- Risk management becomes box-checking.
- Growth opportunities get missed.
CEOs who treat the board as a partner—not a burden—reap the rewards. Research shows CEOs spend 25% of their time with their board (RRA). That’s a big investment—but when managed well, it multiplies enterprise value.
The CEO’s Role: You Can’t Delegate This
The board’s core responsibilities are clear:
- Hire and fire the CEO.
- Approve the company’s strategy.
- Manage risk through governance committees.
But here’s the nuance: approving strategy doesn’t mean designing it. Too often, well-meaning board members—especially former CEOs—blur the line, steering operational decisions instead of guiding direction.
As CEO, it’s your responsibility to set boundaries, create clarity, and elevate the board’s work from tactical to strategic.
What Great CEOs Do Differently
High-performing CEOs make their boards a competitive advantage. They:
- Engage Early – They bring the board into strategic discussions before decisions are made.
- Clarify Expectations – They align on the board’s role and revisit those expectations often.
- Build Relationships – They invest time one-on-one, not just in the boardroom.
- Lead with Transparency – They err on the side of openness, fostering trust and credibility.
The payoff? Boards that are engaged, objective, growth-focused, and results-oriented. Boards that don’t just review reports—but shape the future.
The CEO Call to Action
Ask yourself today:
- Is my board challenging me on strategy—or just reviewing numbers?
- Do I have true clarity with my board about their role versus management’s role?
- Am I investing enough time in building trust and transparency with individual board members?
If the answer is no, you’re leaving enterprise value on the table.
Because a great board isn’t just governance—it’s one of the most powerful levers of growth. And making your board effective is one of the six things only you can do.