Why the Right Partnership Matters

In the opening chapter, the social contract—a clear set of behavioral statements willingly subscribed to by the board and CEO—was prescribed to strengthen and maintain the partnership between these parties. In chapter 2, tough love was presented as a requirement to make this partnership work. These two elements are crucial to a company’s survival. Every board needs to face the reality that business cycles are unavoidable and uncertain, and the board and CEO must be willing to work collectively to meet the challenge of changing conditions. As was depicted in table 2.1, each stage of the business cycle