Sunday, April 27, 2008

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.

4/27/2008 8:07:18 AM (Eastern Standard Time, UTC-05:00)  #    Disclaimer  |  Comments [2]  |  Trackback
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© Copyright 2013, Doug Eadie & Company

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