What is the purpose of a board?
What are the desired outcomes from the combined focus of the operation and executive boards? The board should have the combined function of protecting the interests of the business whilst seeking to scale up opportunity. Essentially setting the conditions for good governance of the business interests. They should be the business knowledge suppository, they should have a handle on the current pressure points whilst maintaining a long term focus. All the while each should have a commercial focus on their seat at the table to drive the growth and development of the business.
Encouraging healthy disagreement and conflict in the boardroom builds trust.
Dynamic Engagement
So what are the challenges and opportunities to creating dynamic engagement? To truly energising the board. Dynamic because it is defined as energy or effective action, an absolute requirement of a board member. Engagement, the act of engaging, a pledge, an obligation, having full commitment. A board with dynamic engagement will have a collective ability to very quickly generate momentum in the growth of the organisation. It will have the ability to make swift decisions which have been well contemplated without the mire of bureaucracy hindering action. There will be a risk awareness rather than a risk-averse focus.
In all this will be a board which engenders a swift thinking growth orientated commitment. So what does it take to develop and establish dynamic engagement within the board? The criteria are simple, get the right people around the table. Sounds easy right? More often than not it turns out to be very difficult.
Communication on the board is key, never leave the unsaid, unsaid. Build trust through open and challenging engagement encourages healthy conflict.
In some cases becoming a board member seems to be a passage of right. Having served in the business for so many years it’s only right they become a board member. It may be a great business owner goes to make a poor board chairperson. There is no clarity in making decisions. The board becomes overly theatrical and an echo chamber.
How to truly engage the board, to create dynamic engagement?
In the very first instance, the business owner doesn’t necessarily make the best chairperson. A chairperson needs to have the skill in engaging the board, whilst maintaining the overarching purpose and focus of the board. Unequivocally having the needs of the business in clear focus, thus keeping all board members on point. This is also the sign of a great business owner or MD having the confidence and courage to appoint such a person.
Clear, concise and open communication. Creating the trust of the board to challenge where required and open to healthy conflict. Ensuring the unsaid is never unsaid, it’s brought to the table.
How big does the board need to be in relation to the business, how many organisational departments are there, what is the size of representation and expertise required?
Always avoid the ‘tail wagging the dog’ syndrome. Strong characters can railroad debate with their personal agendas, resulting in false priorities being set.
Dynamic engagement will energise a board, more importantly, it will create a virtuous circle of trust, challenge and candor. A sure way to tap into and unlock the business’s potential.
