On 9 and 10 July, a global audience of governance professionals is gathering in London to explore ‘The Future Board.’ Multiple speakers from academia and practitioner communities will share insights on structure, composition, behaviour and dynamics. Central to much of the debate will be the perennial problem of how to embed governance in the hearts and minds of boards and their stakeholders. A simplistic response is that in order to build trust in a world of instant, global connectivity:
Be clear about your organisation’s belief system
Ensure that it informs all strategic decision making
Individually and collectively evidence a commitment to your decisions and their underlying ethics and values
Whether you view the need to embed governance in your organisation from the perspective of a director or as a governance professional, there is a need for a new set of frameworks and tools to inform the choices you make.
In 2018, ICSA – The Governance Institute published a Competency Framework. It highlights the understanding, practice and values which equip individuals to enable their boards to deliver good governance. Building on the expertise required to apply knowledge wisely, the framework advocates anticipating and navigating board dynamics and ultimately influencing the practice of governance across the profession.
Competence frameworks have existed for the director community for several years. Investors, regulators, commentators and governments are paying significant attention to the contribution of board strategic decision-making and behaviour to organisation failures.
Governments have updated the regulatory and legislative requirements for boards in public, private and third sector organisations to provide better evidence of their robust strategic decision-making processes and governance. Regulators provide guidelines on effective Board behaviour. Investors and other funds providers have increased their level of scrutiny and demands for strategic intelligence. Individuals sitting in those boardrooms can be in little doubt of their collective and individual responsibility, accountability and liability.
The logical case for embedding governance is known but universal application of governance principles is still a work in progress. Powerful individuals approach the conversation with different motivations. Beyond Aristotle’s ‘modes of persuasion’ (appeal to Logic, appeal to Emotions, appeal to ethics/Values) is a fourth factor. The need to establish whether an individual is motivated by self or collective Interest can help inform dialogue. By establishing each individual’s motivation in a given situation, it is possible to start to build consensus and commitment to going beyond compliance and embedding governance.
The LyonsBateson Motivational Risk Model © 2018 Laurence S Lyons and Anna Bateson