Best of Boards, 2nd Edition

Chapter 9 The Courage to Lead

Cal is the founder and recently retired CEO of a Fortune 100 company. He is also a patron of many philanthropic organizations. He recently joined the board of a small, local nonprofit focused on the arts and education. He brings both substantial financial means and the operating style that served him well in the corporate world.116 Orders are issued; invectives fly. Fellow board members are demeaned and resign. New members (nominated by Cal, who is also the organization’s largest donor) are sycophants and toadies. Initiatives are railroaded through. Corners are cut. Sam, the board president, and Sally, the CEO, have spoken with Cal about civility, mutual respect, governance, and board processes. These conversations initially brought nominal change but lately have been dismissed with umbrage.

Following her last discussion with Cal, Sally has given up on efforts to confront him. She chalks up his behavior to "differences in style" and maintains that the financial ends justify the interpersonal and strategic means. Sam maintains that the price being paid for the donor’s largesse is too high. He believes that Cal is driving off potential trustees and donors, and he is concerned that all of Cal’s suggestions are unanimously supported and pursued, regardless of whether they are meritorious, legal, or in keeping with the organization’s mission.

Vast pressures face today’s executives, managers, board members, and employees. A core capacity for successful ...