Top 5 issues: 5. The high-performing chair

Pressures on boards to navigate difficult short-term economic and financial issues; increasing expectations of shareholders, stakeholders and the wider community; the increasing impact of generational and other changes on the labour market; and fast-moving changes such as AI and quantum computing are very real. So are the tensions in some of our boards. Therefore, chairs performing at the top of their game are now more pivotal than ever. In specialist areas, board committee chairs are also important, leading deeper dives in key areas, supporting management well, and guiding the board’s consideration of these key issues for the organisation. 

The role of the chair has never been more demanding. As boards face increased scrutiny and navigate complex challenges, chairs are expected to lead with a strategic mindset and adapt to new realities. Those challenges relate to all the ‘Top five issues for directors for 2025’, and more. 
 
While still being first among equals with other board members, the role is about responding to a rapidly changing environment where expectations on directors have grown. Changing legislation, increased accountability, more active regulators and increasing transparency demanded by shareholders, customers and communities mean that chairs are increasingly having to guide their boards to work through these demands. 
 
Chairs must also foster cohesion, ensure effective decision-making and guide their boards through uncertain times. Yet boards do not always function that well, with 70 per cent of New Zealand directors saying that, unconstrained, they would change at least one member of their board. An even greater proportion of directors believe their boards lack adequate processes and systems to deal with problematic or underperforming board members. Sometimes, the person boards want to change is the chair. 
 
Succession issues that loomed large in 2024 seem set to continue into 2025, putting even more pressure on chairs. They now need to guide boards to consider the required technical skills and, increasingly, the ability of directors to work effectively with an increasingly diverse group of people. Helping to harness this diversity can bring enormous benefits. 
 
Board committee chairs also play a key role with deeper dives into new and complex issues. To be effective, board committees need to be led well by their chairs. In this role, they are as pivotal for the board as the board chair. They will be called on to lead discussions about those key issues at the board table and, therefore, have a wider board leadership role as well. 
 
Strong committee chairs also provide a source of potential successors to board chairs if supported, coached and mentored well. This is another key role for high-performing chairs. 

WHY IT MATTERS 

Today, the chair’s role goes well beyond coordinating meetings and managing agendas. Chairs operate in an environment where public trust in institutions is waning, and diverse perspectives around the board table are more common.

As boards bring in members with varied backgrounds, skills and viewpoints, the potential for misunderstanding and conflict can increase. Chairs need to be skilled facilitators, turning those differences into strengths and keeping discussions productive and focused on long-term goals. The ability to manage tensions, while guiding the board towards consensus, is a hallmark of high-performing chairs. 
 
The complexity of the role extends to the nuts and bolts of governance. Chairs oversee an array of committees, advisory boards and working groups, all of which need to be aligned with the organisation’s strategic direction. Balancing these structures without creating silos is a challenge, as is keeping the board’s attention on strategic priorities instead of getting bogged down in day-to-day operations.

A well-structured agenda and smooth coordination are crucial, along with the ability to adjust governance processes to meet the organisation’s needs. This extends to board committee chairs as well. 
 
The chair-CEO relationship is also a critical element of success. It is about finding the right balance between providing oversight and being a strategic partner. This relationship becomes especially important during periods of change, where a strong partnership can ensure strategic shifts are implemented effectively and align with the board’s vision.

Co-chairing models, which are becoming more common across sectors, add another layer of complexity, requiring clear role definitions and a collaborative leadership approach.

High-performing chairs are not defined solely by their experience or seniority. They are defined by their ability to adapt, guide and bring out the best in their boards. The role calls for a leader who can drive continuous improvement, foster a positive board culture, and ensure the board is prepared to tackle future challenges. 

FOCUS	ACTIONS	DISCUSSION
Strategic adaptability	Lead quarterly strategy reviews to incorporate new technologies and adapt to economic shifts​​, including through board committee deep dives	As a chair, how am I preparing for and developing the skills to lead the board in preparing for the other issues outlined in the ‘Top five issues for directors for 2025’? As a committee chair, how do I facilitate deep dives into key issues that support board decision-making and management on those challenging issues?
Cohesive board culture	Actively promote a culture of inclusivity by implementing structured processes for engagement, such as round-robin discussions where each board member shares input on critical issues. This fosters balanced participation and constructive debate​​	As a chair, and with the board, what practical steps are being taken to ensure all directors, regardless of seniority, contribute equally during meetings? What specific training or workshops do I need as a chair to improve board dynamics and enhance mutual respect?
Succession planning and mentorship	Develop formal mentorship programmes for emerging leaders within the board. This can include shadowing opportunities where potential successors observe and learn from committee chairs​​	Who among the board’s members has the potential for future leadership roles, and how can we best prepare them? What structured mentorship or leadership development activities are missing from the chair’s and board’s succession plans?
Enhanced governance practices	Conduct regular peer evaluations and utilise independent assessments to identify and address director performance gaps. Implementing annual reviews with feedback mechanisms ensures accountability	How can the board improve its peer review process to ensure objective feedback on director contributions? Are there measures in place to handle persistent underperformance, and what improvements can be made?