Luminary Search offers a range of services designed to facilitate a strong and functional Board/chief executive relationship.

The scenarios that could create stress in this relationship include: organisational evolution outstripping the incumbent chief executive's capability; a divergence in values and/or temperament within the Board and/or between the Board and the chief executive; governance issues or the Board running the business, or circumscribing the autonomy of a high-calibre chief executive; unsophisticated sourcing and selection practices delivering major chief executive recruitment errors; weak organisation and/or the inability of the chief executive to execute the business strategy.

An effective Board/chief executive framework requires the following key elements:

Established boundaries for strategic decisions

• Ensure the Board/chief executive agree on strategic direction
• Ensure the chief executive is a strategic fit with the organisation
• Ensure there is a clearly defined definition of Board and chief executive roles and expectations
• Develop a chief executive role description with defined performance standards
• Ensure an appropriate contract of employment supports Board/ chief executive relationship

Engage with the chief executive

• Agree with the chief executive an appropriate performance-appraisal process
• Agree with the chief executive a regular development plan
• Devise a mechanism to encourage frank and constructive Board/chief executive dialogue
• Provide sufficient resources (dollars, time, expertise) to engage with chief executive 
• Develop a chief executive remuneration system that is aligned with organisational strategy

Refine and act

• Ensure Board systems and processes support an effective Board/chief executive relationship
• Review and redefine the chief executive's role on a regular basis
• Undertake the regular chief executive performance appraisal and remuneration review
• Continually refine a view concerning the ongoing suitability of the chief executive 
• Ensure appropriate short-term and long-term succession plans are in place

Attention to each of these elements will ensure the Board’s and chief executive’s expectations are well conceived, clearly articulated and measured to deliver a quality outcome when engaging a chief executive.