What Skills Do Board Chairs Need?

In a recent article published in Harvard Business Review, professors Pedro Fontes Falcão (Instituto Universitário de Lisboa) and Randall S. Peterson (London Business School) argue that the board chair role has grown dramatically more demanding, requiring a fundamentally different skillset than a decade ago.

Drawing on interviews with more than 100 FTSE-listed directors, including 30-plus chairs, conducted through London Business School’s Leadership Institute, the authors find that classic strengths such as executive experience and strategic execution have become much less critical. More important now is the ability to “synthesize massive amounts of information, identify patterns in complex data, listen to and reconcile competing perspectives, and manage apparent contradictions,” they argue.

The authors identify four core imperatives for effective chairs today. First, they must build a culture of learning by creating psychologically safe environments and facilitating honest feedback. Second, they must actively manage increasingly diverse boards, conducting regular skill audits and encouraging specialists to educate their peers rather than simply deferring to them. Third, they must navigate sharply conflicting stakeholder demands, balancing shareholders, regulators, customers, and activists, before external parties impose solutions. Finally, they must serve as active partners to their CEOs, managing board demands so executives are not overwhelmed.

“Today being an effective chair demands more work than ever,” the authors conclude. “But when the right person is in the job, filling the larger role we have just described, a board can increase the odds that a company will succeed.”

In a Peer Perspectives article from our 2024 Compendium, Peter Gleason, CEO of the US-based National Association of Corporate Directors (NACD), argued that cultivating a high-performance board culture is essential to strengthening governance and preventing corporate failures.

“In the dynamic landscape of today’s business environment, the pursuit of board agility is shedding light on the pivotal role that the board’s culture plays,” Gleason wrote. “Boards must create performance cultures on the board akin to the performance culture they expect management to create and sustain ... Neglecting to cultivate a purposeful board culture isn’t simply a missed opportunity, it’s a breeding ground for misunderstandings, conflicts, and, ultimately, the erosion of good governance.” ▸ Read More