Cutting Through The Grey

Supporting Boards to deliver governance and compliance

Over the last five years, company advisors and secretariats have shared their insights into how they support the leaders of their companies. Reflecting on how and why their role is changing, they provide practical advice on creating the right board, developing the right processes and encouraging the right behaviour in boardrooms.

Download Governance and Compliance Article - April 2015

Corporate Governance - insights

The ICSA Annual Conference 2015 recently bought a global audience together with a panel of fascinating speakers. After reflecting on the many messages, these struck me as being critical in delivering good corporate governance: 

Key messages:

1. Boards need to focus on being ‘fit for the future.’

2. Informed ownership makes better investment decisions.

3. Delivering good governance requires a change in business leadership thinking and tone.

Challenge for organisations/boards:

1. How to ensure that succession planning is taken seriously.

2. How to engage stakeholders by developing real insights and creating active dialogue to tell the strategic direction story.

3. How to ensure reporting is forward looking, clear and real.

Challenge for directors:

1. How to respect the views of people who think in different ways.

2. How to develop curiosity and bravery.

3. How to ensure your contribution is heard.

Non-Executive Director - insights

 

Recent discussions with experts and practitioners provide pragmatic advice for clients and candidates:

The opportunity

Client advice:

Take succession seriously.

Think carefully about what you need to make you ‘fit for the future.’

Prepare your role and person specifications thoughtfully – don’t create in your own image.

Pick the head-hunter not the firm.

Candidate advice:

Establish your personal risk appetite.

Get on the radar of the sectors/organisations you are interested in and the people who can open doors - public and third sector advertise but private sector opportunities are not always transparent.

Pick carefully – conduct due diligence on the board, chairman and organisation. Identify ownership, board structure, composition, processes and dynamics.

Find people to endorse you so that you get through the initial sift.

The selection

Client advice:

Schedule search and selection realistically.

Build on your board rhythm to take advantage of existing events and access to key decision makers.

Respect all candidates – they will share their experience.

Candidate advice:

Research and prepare properly – currency is important.

Position your capability against the specification.

Experience board dynamics in action – how do the Chairman and Chief Executive interact?

The transition

Chairman and new NED advice:

Tailor on-boarding processes to meet the individual’s need.

Ensure meetings with all board members and senior managers before the first formal event.

Establish how the new NED can best add value and share insights and expertise.

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?'