Leadership Lessons From NRMA’S Chair and CEO
In the dynamic world of business, the interplay between a Chair and a CEO is crucial to an organisation’s success.
Recently, the 24HR Business Plan sponsored an Australian Institute of Company Directors (AICD) breakfast event, where NRMA's Chair, Tim Trumper, and CEO, Rohan Lund, shed some light on their relationship and 'no surprises' approach.
After the event, we decided to distil the top insights & anecdotes from their discussion, offering valuable lessons for all senior business leaders.
Establish a regular rhythm of comms
Building a strong relationship requires consistent communication. For Tim and Rohan, this means fortnightly in-person meetings, with a high-frequency of texts, and formal performance reviews. This not only cultivates trust but also eliminates surprises, ensuring alignment in the leadership team's vision and actions.
Navigate conflicts with a customer focus
If conflicts or differences of opinion arise, Tim emphasises the importance of grounding conversations in "the future needs of the customer”. This approach helps set aside personal differences, ensuring that discussions remain focused on the company's best interests.
Practise what you preach
Rohan credits NRMA's success to their authentic demonstration of values, like 'walk in your shoes’. To align decisions with customer needs and frontline staff experiences, he and Tim practise what they preach. For example, they carve out time on board meeting days to answer phones in the customer call centres.
Anchor governance in customer satisfaction
The Chair & CEO can look to a lot of sources to establish and enact good governance. For Tim, it should always be focussed on a great customer experience. "We live in a world where customers actively tell us what good looks like, annoy them and you’re just one click away from a competitor.”
Turn risks into opportunities
The core roles of the board are to set strategy, establish governance and minimise risk. Tim & Rohan’s refreshing take on this topic is that risk and opportunity are two sides of the same coin. When the Chair and the CEO open their minds to this, they can work together to find the good in every situation. A classic example is NRMA's pivot to electric vehicle charging stations in the face of climate change.
Remember your ABC’s
The other role of the Chair and CEO is to cultivate the longevity of the business. When asked about this, Tim invoked Warren Buffet's ABC's. "Work with your CEO to identify and eliminate Arrogance, Bureaucracy and Complacency”; or as Buffet describes them “the cancer of any business.”
Bring Your team on your journey
Last but not least, the Chair and CEO relationship is pointless if the rest of the organisation isn’t aligned. For Rohan, this means actively keeping board and team members informed. “If I have an offline conversation with Tim that is later brought up in a meeting, I’ll make sure to provide context so that no one feels like decisions are being made in isolation.”
The success of NRMA's Chair and CEO partnership lies in a commitment to transparency, customer-centricity, and a shared focus on the future. By establishing positive relationships, senior business leaders can navigate challenges, foster innovation, and build lasting success.
