Blogs – Cutting Through the Grey

Governance Leadership Programme 2010 – 2022

This is the moment to thank the many individuals who collaborated and contributed to the Governance Leadership Programme (GLP) over the past twelve years. With publication of the Governance Hot 100 2023 it is wonderful to once again see Alumni among the nominees and winners.

Back in 2010, prompted by enquiries from my clients, I approached the Joint Managing Directors of the Institute of Chartered Secretaries and Administrators’ (ICSA’s) commercial business. We discussed the need for The Institute to provide non-technical personal development for senior, experienced professionals. The GLP was co-designed to enable individuals to develop Situational Intelligence™. Participants were provided with opportunities to reflect on how they thought, decided and behaved in the situations they faced. Providing facilitated conversations in trusted groups and peer and professional coaching, the programme reached a global alumni of governance professionals drawn from CGIUKI and Europe, Africa, Asia, North and South America. With a focus on currency and practicality, GLP encouraged hundreds of individuals to be curious and brave.

Among the many inspiring colleagues, speakers and hosts who shared their own stories and insights, special mention goes to:

Will Booth who co-designed the programme and bought so many people together in this valuable collaboration.

Simon Osborne who was an active and enthusiastic sponsor and advocate.

David Venus and Charis Evans who were among the gracious hosts.

Chris Moon who excited and challenged each group to explore their own resilience.

Victoria Whyte, David Press, Jeremy Small, David Gracie, Annemarie Durbin, Rob Bellhouse and Lyn Coloff who were among the many wise and generous speakers.

Ten of the best #GLPWisdom

People always remember how you made them feel #GLPWisdom
The biggest limit in life is the way you choose to think #GLPWisdom
Understand your strengths and reputation #GLPWisdom
Be easy to deal with, a capable and safe pair of hands #GLPWisdom
Understand the language of the boardroom #GLPWisdom
With difficult people find out why they are behaving like that and work on an accommodation #GLPWisdom
Flex your style to fit the situation #GLPWisdom
Create the opportunity for healthy tension and robust debate #GLPWisdom
Be curious, learn continuously and know what is coming up #GLPWisdom
Build your support network #GLPWisdom

Thank you all.

Anna Bateson,

Founder of Cutting through the Grey

GLP Programme Director

Reflections 3 years on

March 2020 Looking back at my diary, the month started with a busy week facilitating a number of different workshops for Boards of Directors and Governance Professionals in London. On Friday 6 March I replanned all my Q2 scheduled activity for virtual delivery. Looking back, it is difficult to identify the single trigger which prompted me to replan. Based on my experience as a founder member of The Henley Future Work Forum (FWF) back in the 1980s, and my subsequent collaboration with Dr Laurence Lyons, the FWF co-founder and Research Director, the technological and behavioural transition was smooth. I am fortunate to have a valued support network and trusted client relationships.

Adversity Much of my time over the last three years has been spent supporting business leaders as they navigate adversity. The privileged position of being invited to talk with leaders across multiple sectors and territories, highlights two truths:

– Adversity corrodes inspirational leadership

– Adversity reinforces inspirational leadership

Identifying angels and devils has pre-occupied business authors for decades. The corrosive damage which toxic behaviour can wreak on any organisation is universally recognised. Perhaps it is surprising that multiple recent examples exist of visible devilry being tolerated and condoned. The behaviour can be viral and damages people.

Conversely, spirits lift with examples of inspiring leadership practiced passionately and altruistically. This celebration of angels is also viral and draws together communities of loyal followers, eager to share and collaborate.

Leaders Our decisions and behaviour are scrutinised to determine whether we are devils or angels, or perhaps a bit of both. Taking time to consider the impact we have on others is essential, but as a solitary activity we can be selective in what we choose to see and believe. It takes curiosity and also bravery to develop self-awareness of the real impact of our behaviour and how people perceive us.

Relationships Resilient and agile leaders nurture relationships, investing time and effort in building and sustaining trust. These relationships extend beyond the boundaries of their organisations and create continuous conversations which lead to shared solutions to challenges. It is heartening to hear many examples of supply chains and customers collaborating to sustain organisations in the difficult trading environment of the last three years.

Constructive challenge Talking to people who don’t think like us takes more effort but provides insights which may be far more valuable than existing in an echo chamber. Inspirational leaders are increasingly ensuring that they make robust strategic decisions by creating small groups of empowered individuals with the brief to rigorously test implications and impact. The practice is not new. When co-writing the British Airways Leadership Story with Tony Voller back in 2004, we highlighted how the CEO, Rod Eddington, navigated the airline through 9/11 supported by a ‘Gang of 5’ constructive challengers who gathered ideas and perceptions from across the airline and beyond.

Learning The last three years have been characterised as ‘unprecedented.’ Reflecting on the organisations who have navigated well, one characteristic stands out. They have experienced adversity before and learned from it. Going far beyond a mechanistic review process generating ‘lessons learned,’ these organisations have probed to discover causes behind symptoms and developed new ways of operating which anticipate change. Mistakes are shared not hidden and ‘near misses’ are discussed openly. This behaviour requires the visible sponsorship and involvement of all leaders to become instinctive. It requires inspirational leaders.

Behaviours to admire

As the season for recognition and awards progresses, stories are shared of the behaviour which defines excellence in organisations and their leaders.

With the privilege of coaching directors and their advisors over many years, delivering chartered qualifications and judging professional awards, common themes are apparent to me. They highlight the behaviour we admire and seek to emulate:

Explaining why – Organisations, initiatives and individuals who can clearly articulate their purpose are able to attract and retain the interest and attention of their audiences. Their decisions and behaviour are continuously judged against that purpose.

With a human face – It is easy to intend being clear about what you believe in, taking decisions in the light of those beliefs and behaving in a way which is consistent with your stated principles and values. Living your values at organisation and individual level takes effort but pays dividends. Values in practice are evident in the opportunities you choose not to pursue as well as the actions you take.

In conversation – Award-winning organisations and individuals recognise the importance of visible and continuous dialogue with their stakeholders. Their project Gannt-charts have ‘engagement activity’ as the top line. Effective conversations listen to the unfiltered voices of diverse people and respond in a way which demonstrates appreciation for ideas contributed and an understanding of concerns.

Working together – Collaborative ventures, based on common understanding and commitment, deliver value for all participants. Identifying individuals and organisations with complementary strengths provides a foundation for creating productive and enjoyable relationships. Award winning partnerships are defined by natural curiosity, the desire to look beyond the current and obvious and anticipate changing trends and the opportunities they provide.

For the greater good – Altruistic leaders, clearly motivated by more than self- interest, attract loyal followers. They understand that leadership is about more than directing and controlling. The generosity of spirit which enables others, characterises excellence. The media have labelled the late Queen Elizabeth II as a globally recognised exemplar of ‘servant leader’. Recognising the organisation as a separate legal entity, identifying the expectations and aspirations of all stakeholders and balancing the collective good are all characteristics of award-winning organisations.

And delivering – Promises made and kept inspire trust and confidence. They epitomise an organisation’s or individual’s lived brand. Intentions are laudable but delivery is essential. Excellence is demonstrated by behaviours that pay continuous attention to progress against objectives and that track both the achievement of outcomes and the approach taken.

The art of conversation

We have learnt different ways of communicating in the virtual or hybrid world of work.

We try to create opportunities to talk and listen.

We try to notice how people are feeling.

We try to encourage others to share insights.

Our efforts are partially successful but we regret the ease with which these activities took place when we were together in the same place.

Are we mourning reality?

How does our age and tech savvy level impact our migration to this new world?

How depleted are our reserves of confidence and resilience?

Trust is the liquid which eases these conversations.

So which path will we take through the woods and who will walk with us?

2021 – A year to reflect on

As many of us return to being a largely ‘home bound population’, we may reflect on how well we have navigated our organisations through 2021. My ABC of strengths which differentiate successful leaders in the boardroom are:

Authenticity

Bravery

Curiosity

Being yourself and being courageous usually get a thumbs up from business founders and across the wider director community. They make sense. They come naturally.

Giving yourself permission and the time to be curious is often less instinctive. For some, curiosity is a natural strength. For others is needs to be nurtured. Curiosity sits behind so many ways in which effective directors think and act. Formulating strategy relies on the curiosity to scan the horizon; reviewing risk appetite involves the curiosity to build an understanding of different perceptions in and of the boardroom; inclusion relies on curiosity and a genuine interest in other perspectives.

Curiosity drives the places you go and the people you talk to; the times you stop and listen to someone who you haven’t heard before; the organisations you visit to see how they do things.

Curiosity is also about the holes you stop and look in; the skies you look up at; the puddles you jump in; the leaves you look under. Recapturing that childlike inquisitiveness can pay dividends in the serious world of business.

Being curious is often measured by the number of publications and information sources you read. Successful business leaders like Warren Buffett share their extensive daily reading regimes. Business publications signpost authors and articles. Strategy houses and academic institutions consolidate insights from multiple practitioners. We may simply resolve to read more in 2022.

In addition, we may embark on the year ahead with a determination to wonder and smile at the ingenuity of nature and mankind.

A robust strategic process

Increased scrutiny by a range of interested stakeholders is prompting many boards to explore how robust their strategic process is. For listed entities, regulators require evidence of compliance and have extended their interest to incorporate a broader governance agenda. Positioned as good practice for all, the agenda has been tailored for large private companies into the Wates Principles. For public and third sector entities, standards bodies provide inspection regimes.

Investors expect to make informed choices and seek assurances that they have a true and fair picture of organisation performance and aspirations. Talent is attracted to organisations that clearly position their strategic intentions and report on their delivery.

When health checking their strategic process, boards may choose to consider the following:

Inputs – board intelligence

Specification – asking the right questions and requesting the exploration of alternatives.

Collation – triangulating sources to increase confidence and including big data and human intelligence.

Clarity – ensuring that assumptions are explicitly stated.

Process

Timing – building on the board rhythm.

Urgency – determined by the level of dynamics in the wider world and market places

Order – sequencing activities to recognise appropriate involvement and sustain focus and momentum through time.

Involvement – building engagement through conversations between horizon scanners and those with operational insight. Ensuring respect for different perspectives and perceptions.

Outputs – decision and tracking

Aspiration – developing a storyline to explain the journey to the future.

Evidence – showing how decisions have been arrived at.

Metrics – choosing the few lead strategic metrics which will clearly show progress and behaviour.

Most critically, a robust strategic process requires the commitment of all members of the board and the teams who enable them to govern effectively. It takes time to align individuals and build common purpose. Failing to ensure that alignment before health checking your process will deliver flawed results.

The Brand/Reality gap

Teflon leaders. Toxic cultures. Tribal behaviour.

Trust dissipates. Reputations tumble. Performance in trouble.

But how long does the impact last and are lessons learnt to prevent repetition?

Regulation and legislation may be a blunt and slow instrument for dealing with systemic dysfunction.

New leaders emerge to deal with the mess, and so we go on.

Self interest and the loss of contact with reality seem to define so many stories.

Board dynamics – a reality check

The sun-drenched weeks of Summer provided me with an opportunity for reading and reflecting. One recurrent theme was underpinned by client approaches from a variety of sectors and territories. Our conversations highlighted the need for realistic expectations, pragmatism and commitment. They went something like this:

‘We need to change the way our Board behaves.’

‘What behaviour would you like to change?’

‘Why do you behave in that way?’

‘Who has noticed the behaviour and its impact?’

‘Who agrees that it needs to change?’

‘Who wants to make it change?’

‘Our board doesn’t share a common philosophy or agenda.’

‘What governance processes do you have in place?’

‘How can you identify individual Board member motivations?’

‘How can you present evidence of differences effectively?’

‘How can you develop Board consensus on the organisation’s purpose, aspirations and beliefs

How can you develop the commitment to change?’

‘We need to do it now because….’

‘What has triggered this urgency?’

‘How much time and effort are you prepared to invest?’

‘How can you build on the existing Board schedule?’

‘How long will it really take?’

‘How can you monitor improvements?’

And the result: Situationally Intelligent programme plans with an increased chance of success.

Board effectiveness is about asking the right questions

Board effectiveness involves asking the right questions. Over the last quarter, my conversations with directors and governance professionals have raised and explored many common themes. It is interesting to note that most are not specific to geography, sector or ownership. It is also true that most of these indicative questions require reflection and thoughtful consideration rather than an instant response.

Board remit. ‘What are we here for?’ ‘Do we agree?’ Do we have a common purpose?’ ‘How do we create value?’ How brave do we feel?’ ‘How far into the future do we want to look?’

Board structure & composition. ‘Are we fit for the future?’ ‘How should we organise ourselves?’

Time. ‘How much time do we need?’ ‘How much time have we got?’ How can we schedule our time together to deliver our remit?

Support. ‘What support do we need?’ ‘Have we invested in our governance team?’ ‘Who should provide external expertise?’ ‘Do we already have this expertise internally?’

Scrutiny. ‘What do our stakeholders expect?’ ‘What standards do we hold ourselves to?’ Who is watching?’ ‘Are we compliant?’ ‘Do we understand how to engage in a digital world?’

Liability. ‘How could we, the board, be affected by our decisions, our actions and the results we achieve?’ ‘How could I be affected?’

Capability. ‘What capability do we need to lead our business now and in the future?’ ‘What contribution could I make?’ ‘What capability do we need to develop?’

Board intelligence. ‘What should we be asking the business?’ What format would help us analyse and synthesise the board intelligence?’ ‘How can we ensure the quality and timeliness of the intelligence presented to us?’ ‘How can we balance our need for concise board papers with a need for comprehensive evidence on which to base our strategic decisions?’

Board dynamics. ‘How should we all behave?’ ‘How do we behave?’ ‘What tone have we created as leaders of the business?’ ‘What environment have we created in the boardroom?’ ‘How well do we listen to others?’ ‘How effective is our strategic decision making?’

Board health. ‘How do we know whether we are healthy?’ ‘What do we think?’ ‘What do others think?’ ‘How do we intend improving our health?’ ‘How will we know if we have made any of those improvements?’ ‘Who will hold us to account?’

Investing in reflection, discussion and synthesis of insights helps to build a common agenda.

The price of agility

According to thought leader Dr Laurence Lyons:

‘The price of agility is under-utilisation.’

Agile – Alert – Nimble – Sprightly, highly desirable characteristics. Being agile is the aspirational goal of most business leaders, but it comes at a cost.

How do you resource the need to deliver value to your existing customers with the need to be continuously curious and quick to spot opportunities.

‘How do you factor in the fat which makes you fit?’

Who keeps the wheels on the car? How do you ensure that the business as usual team don’t feel under valued as the development team are commissioned to seek new and novel solutions?

How do you ensure that insights from the people working with your customers reach strategic thinkers and inform their decision making?

How do you create a culture where reflection time is valued, where the time and inclination to innovate are actively encouraged?

And how do you achieve all the above if the message you send is ‘do more with less?’