CHAIRMAN AND CEO CONFLICT

Published 19/02/2023

Chairman and CEO conflict is a very serious situation. 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. So too the specific circumstances involved.

There are some general steps that the board might take:

chairman and ceo conflict

Investigate the situation: The board should gather information about the Chairman and CEO conflict. This should include 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. They should evaluate the effect it is having 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. It removes the politics from the situation 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. This could lead to a quick resolution to their differences and find a mutually acceptable solution.

Consider a leadership change: If the tension 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. This will depend on the circumstances.

Communicate with stakeholders: Throughout the process, the board should communicate with key stakeholders such as investors. The goal is 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. Prolonged tesnsions can be damaging to the organisation and its stakeholders.