Re: Add value to your board
Mr Strategy. Author of “7 Tools to Get on the Board and Add Value.” To buy the 7 Tools to Get on the Board and Value Book, click here:
‘7 Tools To Add Value on the Board’ Book Purchase Order Form, Summit Consulting Ltd (summitcl.com)
Dear Board Member,
Recent occurrences of boardroom politics are concerning and risk derailing our progress. To add value to your board, apply the following principles of effective directors:
- Open communication without fear. Be transparent. If anyone informs you of something about the business, raise it immediately to the CEO or company secretary, in the presence of the person giving you the information. Say no to rumour mills as they create unnecessary misunderstandings.
- Align actions with company objectives. Take your time to understand the organization’s strategic direction, purpose, vision, mission, ambition and values, and the key business imperatives. What are your company objectives and what is the role of the board in their achievement? Take time to engage with the CEO and the Chairman to understand the value they expect you to bring to the table. Why do you have a sit on the board and what can you do to deserve it? Align your actions and recommendations with company objectives to drive growth. Take time to understand the company’s future-proof model, the way the company creates, delivers and sustains value to key stakeholders now, in the medium term and future. As a director, thinking about how the company will remain relevant tomorrow is one of your top roles.
- Value varied perspectives. The word diversity is being confused. It is about different people bringing different ideas, views and perspectives to the table. A lady board member brings different perspectives than only ladies of her exposure and experience would have. Likewise, the views of an accountant who has never attended more than three years of an engineering class will always be different from those of an engineer who has never attended more than three years of an accounting and finance class. The more diverse your directors, the better the varied perspectives the higher the chances of better and winning solutions to contemporary challenges. A board of five members who are all male, and medical doctors will suffer from groupthink and limited ideas.
- Debate with respect and purpose. In boardroom speak, we call this: Constructive Dialogue, don’t debate to try to win the argument, debate to offer an insight to improve the quality of decision-making over a strategic opportunity or challenge. If you have been long enough in boardrooms you know how some directors can be condescending, sort of to put you at your level. That is not the spirit of directorship.
- Uphold integrity and professionalism. This is the most critical, Lead by Example. Don’t try to arm-twist people into making biased decisions. One of the tough challenges of directors is directors who expose themselves to conflict of interest situations. It will likely affect your conscience. Some scrupulous executive directors will entice you to make you a “detoothed” director. They will put some opportunity in your eyes and suggest your company or that of your friend or relative could do the work. If you are not steady, you may fall into their schemes. Once you accept the deal, it becomes a mini-prison of sorts for you.
I encourage you all to commit to the above principles. You will add value to the boards you serve, and become the best board for the company. A brief discussion during your next meeting will ensure we’re on the same page. You can contact me via strategy[at]summit[dot]com.
Kind regards,
Mr Strategy. Author of “7 Tools to Get on the Board and Add Value.” To buy the 7 Tools to Get on the Board and Value Book, click here:
‘7 Tools To Add Value on the Board’ Book Purchase Order Form, Summit Consulting Ltd (summitcl.com)
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