Category: Blogs

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?’

Are effective leaders ‘proud’?

For decades, we have pursued the search for a simple, universal leadership template against which to measure ourselves, with little success. The ‘Great Man’ and ‘Trait’ theories of leadership, which prevailed in the first half of the 20th century, were followed by the production of business competence and capability frameworks. In many cases, these complex templates tried to define knowledge, skills, attitudes and behaviour in detail, failing to recognise that effective behaviour was context specific and that words and labels have varied meanings.

Take PRIDE – is it a vice or a virtue for business leaders?

The dictionary definition of ‘Haughty, with an overinflated sense of self importance’ supports the notion that to be PROUD is a vice.

The work of Jim Collins on Level 5 leadership and Daniel Goleman on Emotional Intelligence both support the notion that really effective leaders combine passion with altruism/personal humility.

Yet many entrepreneurs subscribe to the notion that PRIDE is an essential characteristic of the successful business leader, seeking to survive and thrive in the complex and ambiguous 21st century operating environment.

Chartered Director, Kerry Davis suggests “Pride in what one does can also be a virtue. Not being content to say: “That’ll do for this client”, going the extra mile to surprise and delight – this has always stood me in good stead to retain clients and build a reputation as someone who understand the client’s needs and wants and tries his hardest to achieve them.

Successful businesses have highlighted the importance of PRIDE as a corporate value. Philip Williamson, when CEO of Nationwide Building Society, launched a comprehensive strategic change programme branded PRIDE, in which the change champions were called PRIDE PARTNERS.

For Boards and business leaders seeking to define their Corporate Values and evidence them in their own behaviour, the message is simple:

“Words matter – choose them carefully and make sure you all agree what they mean in your context.”

This becomes increaingly critical as we seek to lead multi-locational, multi-functional and multi-cultural teams and develop common purpose.