Dealing with conflict between a CEO and the board

Disagreements are an inevitable part of working life. There are many factors that can cause conflict, such as a personality clash or a lack of communication. But what happens if a disagreement is serious and can’t be resolved?

 

If a dispute is serious, it can cause problems for an organisation – including damaging its reputation. It can lead to a breakdown in governance and day-to-day management of a charity, stopping it from effectively working towards it mission. Conflict and tension can also affect the motivation and wellbeing of all staff and the board of trustees.

 

This article looks at some of the factors that cause disputes between management and governance, and how to address tension and prevent it from happening.

 

 

What can cause disputes

 

There are a few factors that can cause conflict between a CEO and trustees. For example, if there is ambiguity over roles, this can lead to misunderstandings over decision-making. You may have trustees getting involved in operational issues or a CEO taking over trustee meetings.

 

If a board starts to micromanage the CEO and executive team and get involved in operational issues, a CEO is likely to feel frustrated. It may feel like the board isn’t confident about their ability to lead the charity.

 

Poor communication will cause problems. If a chair and CEO don’t communicate regularly and effectively, this can contribute to delays in making decisions.

 

Personality clashes can lead to disputes. It’s inevitable that people have different temperaments, working styles, and leadership styles. But sometimes this can affect how a CEO and the board work together.

 

Another factor that can cause tension is when there are concerns over performance. For example, if the management team has a concern about the performance of trustees or the board are questioning the effectiveness of the CEO.

 

Another cause of conflict is when a CEO and board have different visions for the organisation or don’t agree on how a charity can reach it goals. This situation can be made worse if a CEO doesn’t feel trustees are listening to them.

 

Willow Charity Consulting says that small charities may face conflict and tension as they start to grow. Trustees of smaller organisations can often be more hands-on as there is less staff resource. As the number of staff increases, trustees will need to step back and focus on the strategy.

 

Trustees may find this difficult and any frustrations will need to be discussed by the CEO and board. It’s important to manage this process effectively to prevent disputes.

 

 

Getting support from outside the organisation

 

If an agreement can’t be reached, you may need to think about getting some external support. An independent third party will offer a fresh perspective on the situation and suggest some ways to resolve the conflict.

 

Gov.UK says if the disagreement is about the way a charity is run, you can speak to an organisation like ACAS to get advice. Or if your charity is part of a national or umbrella body, you could approach them.

 

Another way to settle disputes is mediation. This is when an independent person meets with both sides and helps them to reach a solution that everyone agrees with.

 

When the Charity Commission can get involved

 

It’s the responsibility of trustees to try to resolve a disagreement or dispute. The Charity Commission will only get involved when there are no trustees in place and a charity can show that everything they have done to resolve a dispute has not worked.

 

 

How to avoid conflict from happening

 

Emily Formby at Charity Recruit says that “the relationship between CEOs and the board of trustees is crucial”. To make sure a charity can effectively deliver its mission, the CEO and trustees need to work in partnership. This means having strategic clarity and strong governance.

 

Recruitment agency TPP say it’s important to make sure everyone agrees on the strategy for how the charity will achieve its mission. Or if there are differences in opinions, the management team and trustees need to openly talk about this.

 

Everyone must also understand the role of a CEO and the board. Trustees are responsible for the charity and strategic direction and a CEO oversees the operations and delivering the strategy. When everyone is clear on this, it stops people from stepping into other people’s roles.

 

When there is trust between the CEO and the board, this helps to create a strong working relationship. To achieve this, you need open and honest communication. This can be done through one-to-one conversations between the CEO and chair of trustees and regular board meetings that balance discussions about strategy and operational work.