Across hundreds of governance reviews, one pattern shows up again and again: the quality of the Chair-CEO relationship is a leading indicator of board effectiveness.
This article explores what strong Chair-CEO partnerships do differently, why “harmony” can be a trap, and how to build the kind of trust that can withstand challenge.
It concludes with 10 reflection questions designed to prompt a frank, high-value conversation.
Recently, one of our clients, Geoff Hunt, Chair of Watercare, put a question to us:
We have a recently appointed CEO.
What constitutes a great Chair-CEO relationship?
It’s a great question – and one of the recurring themes in Boardworks’ governance reviews during the past 30 years. In our experience advising more than 650 boards, the quality of the Chair-CEO partnership is critical to effective governance.
Previous editions of Good Governance have explored this partnership. We have drawn from our archive and scanned contemporary governance thought leaders to dive into this relationship and from these, provide some recommended reading below.
“Beyond dividing duties, both sides must build trust, maintain open communication and be prepared to reset the relationship when challenges arise.” [1]. This dyad It is not merely a backdrop to good governance; it is its engine. Let’s unpack Geoff’s question.
The Chair-CEO dynamic: the engine of performance
The Chair-CEO relationship is unique.
The Chair is the leader of the board, responsible for its effectiveness and the performance management of the CEO. The CEO is the leader of the management team, responsible for the operational performance of the organisation.
When this partnership is strong, issues are surfaced early, decisions are well-tested, and the board maintains composure in moments of stress. Conversely, when it falters, authority blurs, communication fractures, and governance credibility erodes quickly.
The most effective partnerships are built on a foundation of respect, trust and challenge, not simply harmony.
The Chair must act as a coach, a confidante, and a challenger, ensuring the CEO is both supported and held rigorously accountable. This requires a clear understanding of roles and disciplined communication, especially in the informal, pre-boardroom interactions where the agenda is often "edited" and a collective view of challenges is formed [2].
Beyond harmony: the power of productive friction
Effective governance demands that the board and management are aligned on what the organisation is trying to achieve, but not necessarily how to achieve it.
Strategy, as articulated by thought leaders like Roger Martin, is fundamentally about problem-solving and making valid choices.[3] The Chair and CEO must be aligned on defining the problem before debating the solution.
The Chair's role is to ensure the board is testing the CEO's strategic choices—the "possibility portraits"—to ensure they pass the "can't / won't" test: can competitors easily replicate the strategy, or won't they? [3] This requires a relationship that can withstand "productive friction"—the ability to challenge each other's assumptions without damaging the underlying trust.
Furthermore, the board must maintain unity.
As we advise our clients, when concerns arise about the CEO, the board must act as one. Individual directors should never assume the role of "detectives" [4].
The focus must remain on the measurable impact of the CEO's actions on the organisation (e.g. high staff turnover) rather than getting drawn into personality or style issues [4]. This focus on impact, coupled with a clear, written understanding of acceptable and unacceptable behaviours (a "limitation policy"), provides the necessary reference point for assessing the CEO's performance [4].
We also believe that the CEO work with clear expectations of their board, which Boardworks set out in this advisory note. While this was developed in 2001(!) it remains highly relevant today.
Setting and maintaining the right Chair-CEO relationship will elevate your governance effectiveness. Ultimately, the character of a leadership team is measured in the tough times. How you behave and make decisions illustrates everything about the strength of this relationship.
10 questions for Chair and CEO reflection
The quality of the Chair-CEO relationship is best measured by the candour and depth of the conversations it enables. Boardworks co-founder, Graeme Nahkies, summed it best – “It’s when one of the pairing is passive, and relies on the other for ideas, we begin to worry.” Boardworks suggest using the following questions as a starting point for a private, honest discussion to assess and strengthen your partnership:
| # | Reflection question | Core governance theme |
|---|---|---|
| 1 | If we ended our next board meeting without discussing one specific issue, which one would leave you feeling most frustrated or "bummed out"? | Agenda Setting & Prioritisation |
| 2 | In what ways has the information presented to the board been "edited" or co-created by us to represent a collective view, and are we both comfortable with that process? | Communication & Trust |
| 3 | Are we currently focused on the behaviour of management, or the measurable impact of that behaviour on the organisation? | Oversight Focus |
| 4 | Does our current strategy pass the "can't / won't" test—could a competitor easily replicate what we are doing? | Strategic Rigour |
| 5 | Is there a "silence" creeping into our communications on any particular strategic or operational risk, and what is causing it? | Risk & Transparency |
| 6 | Do we view the Chair's role more as a "conductor" (controlling the tempo) or a "choreographer" (designing the space for others to perform)? | Role Clarity & Style |
| 7 | Have we clearly defined "unacceptable behaviour" in writing (e.g. in a limitation policy), or are we relying on unspoken assumptions? | Accountability & Boundaries |
| 8 | When the board "hears things", do we have a pre-agreed, unified process for verification that maintains natural justice for the CEO? | Board Unity & Process |
| 9 | Are we spending enough time defining the problem before we jump into debating the solutions? | Strategic Alignment |
| 10 | Does our relationship allow for "productive friction"—the ability to challenge each other's core assumptions without eroding trust? | Partnership Health |
If you’d like a confidential sounding board on your Chair-CEO dynamic (or a specific issue you’re navigating), book a short call with me here.
Have you got a thorny board question you would like Boardworks to explore? Then email info@Boardworks.nz for our next issue of Good Governance
References for further reading
[1] DirectorsandBoards.com: " Trust, Transparency and Tough Conversations" (Oct 2025). Discusses the Chair-CEO dynamic and how to structure a smooth working relationship.
[2] MattFullbrook.com: "S2E10: Is there really a clear line between board and management?" (Sound-Up Governance Podcast). Explores the discomfort and trust involved in agenda setting and the "editing" of information.
[3] Roger Martin (via boardworks.nz): "Roger Martin – strategy my way" (Oct 2025). Summarises Martin's approach to strategy as problem-solving, "possibility portraits," and the "can't/won't" test.
[4] boardworks.nz: "When the Board ‘Hears Things’ About the Chief Executive" (Oct 2025). Provides practical advice on board unity, focusing on impact over behaviour, and the use of limitation policies.[5] AICD.com.au: "Why the Chair-CEO dynamic is the real engine of agility amid disruption" (Dec 2025). Reinforces the central role of the relationship in navigating complexity.
