WHEN THERE IS CONFLICT BETWEEN THE CHAIRMAN AND THE CEO
If there is a conflict between the Chairman and the CEO, the board should take appropriate action to address the situation and resolve the conflict. The exact course of action will depend on the nature and severity of the conflict, as well as the specific circumstances involved, but here are some general steps that the board might take:
Investigate the situation: The board should gather information about the conflict, including the causes, the parties involved, and the potential impact on the organisation.
Assess the situation: Once the board has a good understanding of the situation, they should assess the severity of the conflict and its potential impact on the organisation. This will help them determine the appropriate course of action.
Bring in an independent advisor: The board may consider bringing in an independent mediator to advise and drive the process of investigation. Using an outsider can be useful because it removes the politics from the situations and brings some objectivity to the process. This is helpful for relationships after decisions and actions have been taken.
Engage in mediation or negotiation: If the conflict is relatively minor, the board may be able to facilitate a mediation or negotiation process between the Chairman and CEO to resolve their differences and find a mutually acceptable solution.
Consider a leadership change: If the conflict is severe and irreconcilable, the board may need to consider a leadership change. This could involve replacing one or both of the Chairman and CEO, depending on the circumstances.
Communicate with stakeholders: Throughout the process, the board should communicate with key stakeholders, including employees, shareholders, and customers, to keep them informed about the situation and any decisions that are made.
Overall, it is important for the board to act promptly and decisively when there is a conflict between the Chairman and CEO, as prolonged conflict can be damaging to the organisation and its stakeholders.
Further help with disputes:
https://www.robinsomerville.co.uk/
https://harperjames.co.uk/services/dispute-resolution-solicitors/director-shareholder-disputes/
https://www.gov.uk/find-legal-advice/find-legal-adviser
