Board Governance & Leadership
The Importance of Behaviours
Anne Storey
21.4.15
Onboard Associates
•
•
Experts in Board evaluation and
dynamics
Over 30 years each experience in
commercial, sports and charity
sectors
20years + Board level experience in Commercial, Public & Not-for-Profit organisations
Including Sports organisations ..….
“Onboard Associates were instrumental in their work with Pentathlon GB to help the
Board of Directors to modernise to provide effective and dynamic leadership aligned
to the organisation Vision and Purpose”Jon Austin, CEO, Pentathlon GB (now Badminton England)
The evolution of Board Governance to include leadership & behaviours….
1980’s
Various scandals of financial misreporting in UK business
Early 1990’s
Cadbury Report
improvements in financial reporting, transparency
audit committees to be established
more, and more impartial, Non Exec Directors
(ethics, transparency, and independence)
Late 1990’s
Corporate Governance Code introduced
Turnbull Report introducing forward looking role for Boards:
risk and strategy (and subsequent updates)
(strategy, risk and change leadership)
2000’s
Enron scandal et al reinforce the need for independent Boards
Higgs Report focused on need for Chair independence &
ensuring NEDs able to make importance contributions
(ethics, facilitation, independence and leadership)
2010’s
Continuation of the story ...
Continuous improvement….Board Effectiveness Reviews
Research reinforcing that Boards with excellent leadership
skills and ethical behaviours outperform organisations without
Recent Thinking about Boards ……..
•
Changing the nature of Board engagement (April 2015)
Requirements for Effective Boards & company performance
• Connect between meetings
• Actively input to the strategy
• Mentor the organisation’s talent (but remain objective)
• Work on some projects with the Executive & staff
• Ask tough questions to get to the heart of things
•
Effective behaviour in Boardroom (2012)
• Respectful listening, open dialogue, constructive probing questions
• Focus on ‘softer’ performance indicators e.g. culture, morale, talent
• Understand enough of the operational details to take a strategic lead
Summary of recent Board research……
Summary of Key Effective Behaviours from the Governance Framework……..
Before Board Meetings
Read papers thoroughly; prepare questions
During Board Meetings
Balanced and impartial behaviours and thinking style
Respectful disposition
Active listening & probing questioning
Strategic level focus & contributions
Ensure organisational performance is scrutinised
Raise difficult issues through a brave and respectful style of dialogue
Enable robust decision making & actions
Ensure follow up, and that risk is anticipated and managed
Between Board Meetings
Timely delivery of your commitments
Publicly support of Board decisions
Speak to Board, staff & stakeholders to enhance knowledge & relationships
Seek feedback on own & collective board performance
Proactively think about emerging trends, opportunities & risks
Summary of Key Ineffective Behaviours from the Governance Framework……
Before Board Meetings
Fail to prepare thoroughly for Board meetings, and develop my views
During Board Meetings
Use offensive or discriminatory language or behaviour.
Over-promote my own views or get defensive when not shared by others.
Dominate board meetings, or dismiss the views of others.
Get bogged down in discussing operational detail.
Keep quiet if I have concerns about the organisation.
Resist change or new ways of doing things.
Between Board Meetings
Fail to deliver on my commitments as a board member.
Publically disagree with decisions that the board takes as a group
Try to reopen agreed decisions.
Allow disagreements or conflicts with others to go unresolved.
Final thoughts……
“Being a Board member should not be a comfortable
experience. It is a critical and challenging role that carries
with it significant impact. If you are not feeling stretched you
are probably not doing the role justice.”
Craig Hunter, FCIS, Director Onboard Associates Limited.
“Continuously reflecting on and finessing our individual
behaviours and contributions around the Board table, and
between meetings, is critical if we are to display the level of
influence and leadership required for success.”
Bridget Jolliffe, FCIPD, Director Onboard Associates Limited