#Governance :"Navigating Board Dynamics: Key elements to consider when joining New Boards "

The responsibilities of Board members are multifaceted. In addition to providing their professional expertise, every member is expected to constructively manage one-on-one relationships with every other board member, in order to competently serve as custodians of governance, and to effectively participate in crafting the blueprint for the organization’s success. The following discussion explores essential considerations that any board member needs to address, when joining a new Board, in order to properly navigate the intricate landscape of board dynamics and amplify one’s effectiveness in terms of adding value, regardless of how diverse the boardroom could be, with respect to culture, gender or age.

 1-      Understanding the mission, vision, value and attitude toward risk  

(#Mission #Vision #Values #RiskManagement)

 For a new board member embarking on this journey, (and for continuing members as well) , it is paramount to delve deeply into the core elements that define the organization's purpose and direction. Understanding the mission, vision, values, and attitude towards risk will serve as a guiding compass throughout one’s tenure. Here's a few key points of these core concepts.  

 a.      Mission: Grasping the Organization's Purpose

Any board member needs, not only to thoroughly review, but also to internalize the organization’s mission statement, which encapsulates the “why it exists and the impact it seeks to make” on its clients and on society as a whole. Afterwards, it is highly necessary to clarify any ambiguities or nuances in one’s understanding of this mission, then reflect on how best the board member’s skills and expertise can align with (a) the fundamental purpose of the organization, as well as with (b) the expectations of the diverse stakeholders, thereby fostering a cohesive approach to realizing this declared mission.

 b.      Vision: Envisioning the organization’s Future

In order to achieve a quick alignment with the Board’s desired future state of the organization, it is advisable to understand, as soon as possible, the declared vision statement and its long-term aspirations, formulating in one’s mind a compelling picture of “what success looks like in the future” for fellow board members and key stakeholders. Afterwards, the board member is encouraged to conduct an honest review of how one’s talents and capabilities can contribute positively to realizing this vision, before devoting the needed time and energy to help in realizing it.

 c.       Values: Embracing Core Beliefs and Aligning with Corporate Principles

It is crucial for any board member to fully understand the organization’s stated values and value drivers, including the principles and beliefs that guide the fellow board members behavior and decision-making. It is thereafter essential to (a) appraise (if and) how the Board as a collective is indeed aligned with these values, in terms of how board level decisions are made, (b) assess (if and) how these values are in synch with one’s personal principles, and (c) ensure that ones’ own decisions and actions in the boardroom are guided by these values.

 d.      Risk: Gauging the Board’s Risk Perception and Attitude

It is necessary that each board member (a) understands the company's board attitude towards risk and risk drivers, and (b) recognizes how the perception of risk, uncertainties and challenges differs from one member to the other, within the context of the boardroom. It is also necessary to assess how other board members collectively or individually consider opportunities, (as inspired by the vision), and how they align with the risk management framework adopted by the organization to oversee and mitigate these risks, when pursuing the identified opportunities.

 2-      Understanding the Governance Framework, decision making process, relationship structure and human sensitivities in terms of  age, gender or culture.

(#Governance #Relationships #DiversityAndInclusion)

To effectively contribute to the success of the organization, it is crucial for any board member (new or old) to thoroughly explore the company's governance framework, relationship structures and its decision-making processes early on. Additionally, it is valuable for the board member to be attentive to (and considerate of) human sensitivities and the impact of age, gender, and culture diversity on board dynamics.

Such an attitude ensures a more effective (and holistic) understanding of the governance framework being applied. Here is a brief overview of these fundamental principles.

 a.      The Company’s Governance Frameworks: Embracing Differences

It is recommended to acknowledge, as early as possible, that the governance frameworks of a given organization may differ from past accustomed norms.

To better understand the “new board's” governance structure, it is advisable to approach the initial board meeting, and possibly a number of “the next ones”, with a “discovery” state-of-mind, leaning on patience as key, while embracing the role of a neutral listener and an observer of the pace, atmosphere, and priorities of the actors. Such a method would further enhance the effectiveness of how best to engage with other board members.  

 b.      Relationship Structure: Decoding Interpersonal Dynamics

It is advisable to pay close attention to the relationship nature between the members in the boardroom, in particular the Chair and CEO. In this context, it is also necessary to acknowledge the potential influence of major stakeholders beyond the board members themselves (key investors, family members, business influencers, or others), as well as those external parties such as regulators, or community representatives, and how their direct or indirect influence reflects on the actual decision-making process and governance structure, both at board level as well as at the level of executive management. Doing so allows for a comprehensive assessment of how these internal and external influencers could impact decision-making, and renders the interaction process between the members more harmonious.

.c.       Individual Behavior: Understanding and adapting to subtle signals

With regard to individual behavior, it is essential to be attentive to the room dynamics and subtle behavioral signals, including communication styles, voice tones, body language, eye contact and other non-verbal cues. It is also recommended to distinguish, among other important traits, between those who demonstrate modesty vs. arrogance, those who prefer listening vs. talking, those who behave as influencers vs. followers, and react to each one of them accordingly. As a result, a more cohesive and effective collaborative environment would be established, contributing further to the overall success of the board dynamics.

 d.      Cultural Sensitivity and mutual Trust: Building Foundations for Success

Worldwide, mutually beneficial relationships are the cornerstone of effective board dynamics, yet they require trust as their foundation, which in term necessitate openness, patience and time. It is therefore important to acknowledge that, along with maintaining professionalism, one should remain prepared to answer non-intrusive questions about one’s past, including one’s career history and personal background. Others may express genuine (or apparent) interest in learning more about the individual’s personal or social interests, even if sometimes unrelated directly to current business issues. This non-business aspect of the relationship, coupled with a respectful sensitivity to any age, gender and cultural diversity, can foster a sense of belonging and further promote the comfort of mutual trust, hence reflecting positively on the relation in the boardroom.

3-      Understanding the difference between past “Executive” and current “Non-Executive/Advisory” role and responsibilities

( #Leadership #AdvisoryRole #DecisionMaking )

A mindset shift is critical when transitioning from an executive to a non-executive or advisory position. Once in the boardroom, the board member is invited to embrace tolerance in parallel with advocating transparent conversations and cooperative decision-making. In terms of feedback, board members are encouraged to convey it constructively yet subtly, thereby fostering an environment of reciprocal confidence and enhancing board synergy. Here is a number of valuable insights into these basic tenets.

a.      Shifting Focus:  From Executive decision making to Non-Executive Mentoring and Advising role

Once in the boardroom, and instead of making decisions and driving initiatives, a board member is expected to shift efforts towards fostering open discussions and embracing collective agreement on what direction to take going forward. Further, it is critical to present ideas in a calm and supportive manner, and to highlight potential risks and challenges in a way that promotes reflection rather than instigating fear or resistance. Doing so encourages fellow board members to feel empowered irrespective of their knowledge or past experience, allows for diverse perspectives and insights to be considered without hesitation, and fosters collaboration towards common goals.

 b.      Patience: A Virtue in Decision-Making

Further to what was explained about patience in the sections above, it is worthy underlining that many boardrooms value patience and consensus-building over hasty majority votes when making resolutions. This deliberate approach may not be standard practice for many, but it often leads to more informed decisions. While the opposite may be the last alternative on occasions, board members are encouraged to strive for consensus-building, instead of abandoning unanimity and relying on plurality at all times. Such an attitude would foster inclusivity and encourage collaborative discussions, often leading to somewhat more effective decisions.

 c.       Feedback: Positive listening and Learning

In many board environments, feedback may be exchanged in a subtle manner, and appreciation or dissatisfaction may be conveyed discreetly, through non-verbal cues or indirect communication, due to power dynamics., (as mentioned in the section discussing “Individual Behavior” above). It is therefore crucial to pay close attention to the communication method used and to embrace the skill of active observation, careful listening, open minded-ness and continuous learning, both during board meetings as well as during formal or informal encounters outside. Doing so promotes a better understanding of each other’s perspectives and insights, in addition to establishing an environment of mutually constructive feedback.

In summary, and in order to add value to their board, it is important for new board members to understand the organization’s mission, vision, values, and risk attitude. It is also crucial to be aware of existing cultural sensitivities and particular relationship structures while embracing any particularities in the organization’s governance frameworks. Additionally, shifting one’s mindset towards mentoring, patience, active observation and sincere listening is necessary when transitioning from an executive to an advisory and oversight role, in parallel with emphasizing a culture of continuous learning within an environment of constructive feedback. By considering these aspects, new board members can effectively contribute to promoting collaboration and success, regardless of how diverse the boardroom could be.

#BoardGovernance #CulturalIntelligence #EffectiveLeadership #Leadership #LeadershipDevelopment #BoardDynamics #Governance #CorporateGovernance #BusinessStrategy #DecisionMaking #BoardMembers #RiskManagement #Collaboration #DiversityAndInclusion #ProfessionalDevelopment #NewBoardMembers #CorporateCulture