The nexus of power to run the business must be with the CEO and the board—both. The best CEOs are powerful in the good sense of the word—they have command of the business, receive input from and stand up to constituencies as necessary, address issues head on, confront strong individuals when needed, and so on.

Boards must be just as powerful in doing their job of helping management make sense of internal and external complexities and ensuring that the talk matches reality. If the CEO is incapable of running the business properly, replacement is necessary. More often, the CEO needs the board’s input, coaching, and support.

Today’s directors have a calling, and they must respond by continually improving their practices. Only a strong board can counterbalance the many people with influence whose desires and ambitions have been misaligned with creating intrinsic value. These influencers include those compensation consultants who have worked one-sidedly to maximize the benefits and minimize the risk to their client CEOs; some investment bankers, analysts, accountants, and consultants who have led management down the wrong path because of a short-term orientation or self-interest; and some executive search firms, the media, and vocal social constituencies, all of which have their own goals and interests.

The dedication to improvement does not mean a focus on mechanical steps or structural improvements. Those won’t change the real effectiveness of a board. A director’s job is intuitive, not mechanical. Yes, directors must read balance sheets and comply with Sarbanes-Oxley’s myriad criteria. But the real substance of a board’s work requires judgment. Directors must help each other pick up on hints, test instincts, and develop a sixth sense for landing on the important issues. There is work to be done, and satisfaction to be gained in doing it. Effective corporate governance—turning the board into a competitive advantage—is as much a reward for the participants as it is for the companies they govern.

While the practices in this book focus on directors, the CEO is, of course, a vital aspect of the board’s functioning, and is instrumental in making the board Progressive. As I wrote this book, I kept recalling the conversation I had with Jim Doyle, the CEO described in the first chapter. His board is in many ways typical of a Liberated board. That is to say, Jim has turned to his board for help and the directors are active participants in governance—but the board has not yet become all that it could and should be. CEOs have so much to gain by helping their boards become Progressive. So I decided to write Jim the following note to encourage him to continue to improve governance at his company. No doubt the message applies to many other CEOs as well, and if they take it to heart, significant changes will take place quickly.