Naming, shaming, and praising

This is a ONE THING article, which is featured in FDI’s monthly newsletter.

Author - FDI Founder, Paul Smith

ONE THING is for the busy (speak of the devil) Future Director, in which FDI Founder Paul Smith picks just one thing Future Directors oughta know or do or stew on for the next month. We hope you get something (at least one thing) out of it.


We love studying human nature and the science of governing. The One Thing we want to share this month is one very specific part of your brain, called the Nucleus Accumbens – and how it relates to our just-launched Future Director Awards (including a new award for the Future Board of the Year).

The Nucleus Accumbens has long been understood to play a key role in motivation. But scientists have recently published a biological mechanism as to how it might work.

Namely, they found that in the Nucleus Accumbens, two different types of neurons receive two different types of input to project two different kinds of behaviour – risk-aversion behaviour, and reward-seeking behaviour.

Why is this interesting? Because it gives us concrete neurologically language for something we’ve known for years – that motivation is two-pronged.

There’s the 'name-and-shame' tactic.

And there’s the 'shower-in-praise' approach.

So how does this relate to boards...and awards?

Well this year we’ve heard a lot about boards performing poorly. From the Grattan Institute’s revelations that 21% of federal government boards are stacked with political appointees. To the board at The Star missing alarm bells of widespread money laundering at the casino. And to the Optus board’s flat-footed response to the biggest data breach in Australian history.

Those have been shamed. Loudly. That creates the ‘risk’ for behaviour to avert from.

But there’s an equal but opposite source of motivation worth exploring, and that’s the role of positive reinforcement – applauding boards and directors when they do it right.

It’s been found that in most cases, positive reinforcement is a more powerful tool than punishment. Especially when the reward is given out closer in time from when the desired behaviour was performed.

That’s why (and here comes the plug) it’s important that we host our Future Director Awards every year. To call out the most innovative boards and directors that the past 365 days have seen.

Those flipping the boardroom on its head.

Future Directors and Future Boards know in their bones that, yes, it’s important to avoid risks. But just as important, is seeking rewards. In a small way, that’s what these Awards are all about. Encouraging reward-seeking behaviour by creating a reward for reward-seeking behaviour.

So our invitation to all of you is to listen to that reward-seeking half of your Nucleus Accumbens and nominate yourself, your board or someone doing a wonderful job in the world of governance.

You (they) might just be the next Future Director or Future Board of the year.


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The Season of Self Reflection

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New governance awards celebrates innovators flipping the boardroom on its head