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Episode 177 - The Chairman's Real Job: Keep Everyone Honest (Before Someone Gets Fired)

By: Richard Buckle on Jun 19, 2026 11:53:14 AM

The SME Growth Podcast
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As businesses grow, leadership becomes more complex. In this episode, we discuss a role that many SMEs overlook: the chairman. While the title is often associated with large PLCs and corporate governance, we explore why an effective chairman can add significant value to owner-managed and growing businesses. More importantly, we examine when a business might benefit from one and when it probably doesn’t.

We discuss the difference between running a business and governing it, and why those responsibilities are not always best carried out by the same person. Drawing on our experience of thousands of board meetings, we explore how a chairman can help challenge assumptions, improve decision-making, maintain strategic focus, and create the space for honest conversations that are often difficult to have within a leadership team. For many business owners, the role is less about control and more about perspective, accountability and helping the business avoid getting trapped in day-to-day operational thinking.You can listen to the full episode here 


Listen to the full episode now

https://open.spotify.com/episode/0f2ySwQHwCU3vUiZLTCsNT?si=4c7UkeV7QzG9v_Kt6gIRawhttps://podcasts.apple.com/us/podcast/the-sme-growth-podcast-by-wellmeadow/id1654715808https://www.youtube.com/@TheSMEGrowthPodcast 

Key Topics Discussed:

  • What a chairman actually does (and what they don't do)

     

  • The difference between a chairman, CEO, managing director and non-executive

    director 

  • Why chairing a board meeting is not the same as running the business

  • How a chairman helps keep strategy, risk and governance on the agenda

  • The value of an independent voice in leadership discussions

     

  • Why many SMEs struggle to separate operational management from strategic

    leadership 

  • The risks of CEOs marking their own homework

     

  • When growing businesses should consider introducing a chairman

     

  • How private equity-backed businesses often use chairmen differently

     

  • Common mistakes when appointing a chairman

     

  • The importance of challenge, accountability and constructive debate in boardrooms

     

  • Why businesses get stuck in operational "washing machine cycles"

  • The role of mentorship, external perspective and board effectiveness in growth

 

Who Is This Episode For:

This episode is particularly relevant for business owners, managing directors, CEOs, founders, board members and senior leaders in small and medium-sized businesses. If you're responsible for setting direction, making strategic decisions, building leadership capability or preparing your business for growth, succession or acquisition, you'll find practical insights into how stronger governance can support better outcomes.

 

Quotes to Remember:

"It's hard enough in SMEs for directors to separate themselves from the day job."

"You really want the MD freed up from that process so they can be a full-on participant in the meeting."

"Businesses get stuck in that sort of washing machine cycle."

 

 

Actionable Takeaways:

  1. Assess whether your current board structure provides sufficient challenge and accountability.

  2. Consider who is responsible for maintaining strategic focus during board discussions.

  3. Review whether operational issues are dominating conversations that should be focused on growth, risk and direction.

  4. Seek external perspectives, even informally, through mentors, advisors or non-executive support.

  5. Create dedicated time to work on the business, not just in it.

  6. Separate leadership responsibilities wherever possible to avoid decision-making blind spots.

  7. If appointing a chairman, prioritise independence, objectivity and good judgement over familiarity.

  8. Ensure board meetings encourage healthy debate rather than simply validating existing decisions.

  9. Think about governance before you need it, particularly if you're planning growth, succession or investment.

  10. Regularly evaluate not just business performance, but the effectiveness of the leadership team itself.


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