Three things every great board has
A great board is not just a collection of high-performing individuals – instead, it’s the sum of all of its parts.
Great boards encompass a myriad of different factors but their performance invariably is driven by the people in the room. From a careful recruitment process to a fit-for-purpose structure, it’s all about preparedness, performance and perspective.
However, to make things simpler, we’ve distilled all of this information into the three most important qualities that every great board of directors needs.
And note, this is not restricted to corporate boards. This is relevant to charity boards, startups, community organisations, institutions and more. You could be big or small in terms of board size, complexity and balance sheet!
Curiosity
Great boards and directors are perpetually curious. They ask great questions: they’re always learning, evolving and inclusive of new ideas and different perspectives.
Without curiosity there is no innovation. Great boards know that. They continue to draw on the wisdom of the past without being held back by the way it’s always been done. Curious boards stay up to date and informed. They invest in their directors’ development, and enquire as much as they direct.
Great boards are curious about the world around them. They seek to understand the company, its internal and external stakeholders and the operating environment. They’re aware of their role in shaping the future for many different groups, and they’re always looking for the best way forward.
They’re also curious about their impact, both individually and collectively. Great boards measure what matters, and forget about what doesn’t. They look inwards as well as outwards, continuously asking: Are we adding value? What could we do better? Do we know how to do that?
Asking those questions leads us to the next factor...
2. Courage
Curiosity is nothing without courage.
Great boards have the courage to seek out diversity in skill, perspective and background. To sit as the student, as well as the teacher.
They have the courage to spark difficult, yet important, conversations, and they don’t shy away from equally difficult decisions. A great board recognises governance is not always going to be smooth-sailing, and sacrifices or trade-offs are a reality.
It’s true that not all decisions will ultimately impact all stakeholders positively and equally, so when push comes to shove, a great board must march ahead. A great board knows it’s only as powerful as it is courageous.
3. Vulnerability
Vulnerability and business are not often in the same vein, but hear us out.
Boards are not known, or even expected, to be vulnerable. As a board member, you’ll be recruited for your knowledge, experience and the solutions you can provide.
But we live in a VUCA world (an acronym – ‘volatility, uncertainty, complexity and ambiguity’ – that describes the unpredictability of the modern business world). There is so little certainty in day-to-day life (especially amidst a pandemic) – we simply can’t have an answer for absolutely everything. Human fallacy is built into our system, but we don’t like to admit it – especially in the boardroom.
So what happens when you can’t provide an answer or a solution? What do you do?
What about when you don’t understand a new idea, an external situation, a perspective from a key stakeholder group?
Being vulnerable (and curious and courageous) is the key to navigating these tricky situations. Vulnerability allows you to sit back and say ‘honestly? we don’t know – and that’s okay’.
The important part is what you do next.
You can bury your head in the sand, you can knock back innovative ideas, and you can even act defensively. You can (and we see this all too often) avoid welcoming differences into the room.
On the other hand, great boards are open and vulnerable. They will seek out a solution from elsewhere – whether it be new directors, advisers, stakeholders or research.
The future of the boardroom is having the courage and curiosity to be vulnerable enough to reach out for assistance.
These three aspects of a great board are completely intertwined, and they’re also integral qualities in a great leader. With leadership underpinning the why of every boardroom, activating curiosity, courage and vulnerability can make the world of difference to your board.
What do you think? Do you agree?
We’d love to hear your thoughts on the character traits of a great board in the comments below.
And if your board is ready to increase its impact, influence and Board Iintelligence (BQ), then find out how we can help you take the next steps.