Boards like to say they are collective, decisions are shared, but the truth is this: the quality of a board is capped by the quality of its chair.
A ceremonial chair lowers the bar; directors grow passive. Management dominates, and regulators lose confidence. Shareholders wonder why they bother.
A high-impact chair raises the bar. Directors prepare harder. Questions sharpen, debates deepen. Management knows shortcuts will be exposed. Regulators see seriousness. Shareholders see accountability. The institution becomes stronger because the chair sets the tone.
This is not about charisma or charm; it is about discipline. High-impact chair design sets the rhythm of board work. They do not allow directors to sleepwalk through glossy presentations.
They insist that papers are precise, risks are highlighted, and trade-offs are transparent. They create a culture where candour is rewarded, and evasion is punished.
A provocation for directors
Here is the provocation. If your bank is led by a ceremonial chair, you are living on borrowed time. You may enjoy smooth meetings, polite exchanges, and occasional applause.
But when the storm comes, be it a regulator’s letter, a cyber-attack, or a sudden credit shock, you will discover that speeches do not protect liquidity, and harmony does not restore capital.
The question every director should ask at the next board evaluation is clear: Is our chair high-impact or ceremonial? If the answer is ceremonial, you face a governance liability that no risk register can conceal.
And that is why I usually recommend the chair impact grid during board self-reflections or performance management.
“For directors reading this, the choice is stark. Will you settle for ceremony, or will you demand impact? The health of your institution, the confidence of your regulator, and the trust of your depositors may depend on that answer.”
Mr Strategy’s board chair impact grid
To move from ceremony to impact, boards can apply a simple framework.
Where does your board chair fall?
- Tone Setter? The chair frames every meeting around risk, accountability, and courage. They ensure directors are not lulled into comfort but sharpened by urgency.
- Boundary Keeper? The chair draws the line between governance and management. Directors do not meddle in operations, but management is held firmly to account.
- Culture Carrier? The chair model’s constructive dissent. They ensure no director is silenced by hierarchy, and no decision is passed by mere politeness.
- Crisis Catalyst? In moments of pressure, the chair is visible, decisive, and steady. Regulators see authority. Staff see confidence. The market sees resilience.
This brings me to the issue of clarity before motion.
The philosophy is simple: clarity before motion. A ceremonial chair confuses motion for progress. They mistake long agendas and polished speeches for governance.
A high-impact chair insists on clarity first: clarity of risk, clarity of accountability, clarity of decision. Only then does the board move.
In the world of regional banking, clarity saves institutions. Motion without clarity destroys them.
The ceremonial chair earns applause. The high-impact chair earns trust. And in banking, applause does not keep the doors open. Trust does.
For directors reading this, the choice is stark. Will you settle for ceremony, or will you demand impact? The health of your institution, the confidence of your regulator, and the trust of your depositors may depend on that answer.
I remain, Mr Strategy
Author: 7 Tools to Get on the Board and Add Value book.
