Not long ago I was chatting with the chief executive of a
medium-sized association in the health care field about the nature of the
board-CEO partnership. When we began
discussing how the board and CEO might work together on the planning front, I
asked her: “So, how have you involved
your board members creatively in the budget preparation process? I know it isn’t easy, since budgets are
largely administrative documents without a lot of room for intensive board
involvement.” “Well, Doug,” she
responded, “I’m not sure what you mean
by ‘creative,’ but I don’t think I could do much more than I am without
inviting micromanagement.” She went on
to say that she presented the board’s planning committee with a complete budget
document two months before the beginning of the next fiscal year. The committee thumbed through this finished
budget, asking for clarification and occasionally suggesting adjustments in
line items. “I guess you’d call my
approach ‘review and react’,” she pointed out, “and I’m not about to open
Pandora’s Box by inviting them any further into the process.” When I asked her how satisfied her board
members appeared to be with their involvement, she acknowledged that several of
them had seemed pretty frustrated at the end of the just-concluded budget
preparation cycle. But when I suggested
that she open up the process a bit by, for example, involving the board in an
operational issues discussion early in the process, before any numbers had been
put on paper, and that this would almost certainly turn her board into stronger
owners of the ultimate budget, she reacted pretty negatively. “Look, it’s my job to generate the budget and
theirs to review it, and I’m not about to blur the lines!”
Now, this CEO is a really smart and capable person, and I
wish her well in her CEO role, but I fear that she’s eventually going to fall
victim to her need for control, which is pretty obviously overriding her
creativity, at least where the board is concerned. She’s so concerned about preserving her
executive prerogatives and keeping the board from “micromanaging” that she’s
lost sight of a tremendous partnership building opportunity: to strengthen board members’ feelings of
ownership and satisfaction by orchestrating a work session at which they can
examine – and offer input on – operational issues as a very practical and
benign way of helping to shape the budget document.
I’ll let you know how she does, but, meanwhile, be on the
lookout for situations in your own life and career where your need for control
(and for the psychological security that being in control provides) might be
limiting your creativity and, very likely, impeding your personal or
professional advancement. Ironically, as
you’ve probably learned, in dealing with strong people like board members,
attempting to exert too much control is the best way to lose influence over the
long run.
I’d be interested in hearing about similar
control-creativity conflicts that you’ve come across in your personal and
professional lives.