Michel Demaré, Chair of the Board at AstraZeneca Plc, and Chairman of the Foundation and Supervisory Boards at IMD, presented at the launch of our Role of the Chair session IMD.
With his experience in 9 industries across 4 continents, Mr. Demaré’s view on the role of the chair is crystallised:
“Attitude is the most important trait for this role - there's no room for egos. The CEO is the window of the company, and it’s my role to ensure he/she is successful. I consider myself a mentor, offering guidance, bouncing ideas, and providing support.” He emphasises that Emotional Intelligence (EQ) is more important than IQ for being a chair. “It is about empathy, listening to people, focusing on detecting and developing talents, and managing relationships with all stakeholders.”
Regarding CEO succession, Mr. Demaré mentioned that it involves regular evaluations and transparent discussions, benchmarking candidates on attitude, personality, and management style to ensure readiness for future challenges. It is essential to fully involve the CEO in the process. As a chair, he meets the candidates on a regular basis and socialises to get to know them better. An important part of his job is to engage, not only with the executives, but with as many employees as possible to explain to them the role of the board and understand diverse perspectives.
As the chair of one of the largest pharmaceutical companies in the world, the company is dedicated to going beyond business – e.g. initiatives for improving the resilience of health systems and fostering public-private partnerships. Nonetheless, while long-term strategic thinking is crucial in healthcare, the fast pace of change in science and business forces boards to also focus on shorter-term milestones. What is important is to get the right balance between long-term and short-term strategy.”
💡 These are key takeaways from the session 💡:
- Governance and Strategy: To understand the role of the chair, it is a prerequisite to understand the role of the board. It’s all about governance, strategy and people. Ensuring an understanding of governance is essential. Promoting a positive culture and ensuring a cooperative, respectful environment is also crucial.
- Managing Chair-CEO Relationships: The relationship between the CEO and the Chair is key. This is not a competition, but a constructive, yet challenging relationship. The chair’s ultimate satisfaction is to see the CEO shine. Regular engagement with the CEO, and building a relationship based on mutual respect and trust are essential for organisational success.
In the complex and fast-paced business environment today, it is imperative to explore the right role of the chair for effective governance of organisations.
Learn more about the program here: https://bit.ly/3wNIVTB, and about the Board & Governance programs here: https://bit.ly/3R95dG3
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