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In an era of relentless disruption—driven by artificial intelligence, climate transition, shifting demographics, and geopolitical shocks—boards of directors in Africa and other emerging markets face a profound challenge: Are we fit for the future? 

Next-generation board composition is not just a governance trend—it’s a strategic necessity. Today’s effective boards are being reimagined to be digital, diverse, and decisive

1. Digital Fluency Is No Longer Optional 

Technology is reshaping every industry. From fintech and e-commerce to AI-enabled operations and cybersecurity threats, digital disruption is already in the boardroom—whether boards are ready or not. 

Yet, many African and emerging market boards remain digitally underpowered. Few have directors with firsthand experience in tech-enabled business models, cybersecurity governance, or data strategy. 

Boards must proactively recruit digital talent, not just rely on internal CIO briefings. This doesn’t mean every director must be a coder—but boards need members who understand how tech is transforming value chains, customer behavior, and risk exposure. 

2. Diversity Unlocks Strategic Perspective 

Diversity—across gender, age, professional background, geography, and ethnicity—is no longer about optics. It is about unlocking better decisions and mitigating groupthink. Diverse boards are proven to outperform on innovation, risk management, and stakeholder alignment. 

In African markets, where youth populations are dominant and informal sectors thrive, boards must reflect the societies and customer bases they serve. 

Ask: 

  • How many board members are under 50? 
  • How many have deep knowledge of local or regional consumer behavior? 
  • Is the board pipeline inclusive and intentional? 

Diverse boards are more adaptive, more relevant, and more resilient. 

3. Decisiveness in an Age of Volatility 

The next-gen board is not only wise—it’s agile. It can make bold decisions amid ambiguity. That means: 

  • Faster responses to crises. 
  • Comfort with scenario planning and uncertainty. 
  • Empowerment of management, balanced with robust challenge. 

Traditional board cultures often favor lengthy deliberation and consensus. But in today’s environment, inaction is a decision—and often the wrong one

Board processes must evolve. Annual reviews are not enough. Real-time dashboards, ad hoc virtual briefings, and rapid convening of risk or strategy committees are now best practice. 

Rethinking Board Composition: A Strategic Exercise 

Leading organizations are using skills matrices and succession roadmaps to ensure their boards align with future strategy—not past credentials. That includes: 

  • Bringing in directors with cybersecurity, digital transformation, or ESG expertise
  • Appointing younger directors or creating advisory boards as digital sounding boards. 
  • Balancing seasoned governance experience with entrepreneurial thinking. 

Key Questions for the Boardroom 

  • Does our board reflect the future of our market, workforce, and customers? 
  • Are we equipped to oversee digital disruption and tech risk? 
  • Do we have the diversity of thought needed to innovate and respond to crisis? 
  • Is our board structure agile enough for today’s pace of change? 

Conclusion: The Time to Reimagine is Now 

Boards that remain traditional in structure, static in membership, and slow in decision-making will find themselves outpaced by more agile competitors. In contrast, next-gen boards—digital, diverse, and decisive—are shaping the future of corporate leadership across Africa and beyond. 

The future doesn’t wait. Neither should your board. 


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The world is in flux. From geopolitical instability and currency shocks to climate disasters, AI-driven disruption, and social unrest, volatility is no longer episodic — it’s structural. For boards of directors in Africa and other emerging markets, this volatile environment presents a pressing challenge: Can we make fast, informed decisions when it matters most? 

Decisiveness at the board level has become a strategic differentiator. Companies with agile, responsive boards are not only better at navigating crises — they’re more likely to emerge stronger. 

Why Decisiveness Matters More Than Ever 

Traditionally, boards have been seen as oversight bodies: deliberate, consensus-driven, and process-focused. While these traits ensure rigor and accountability, they can also slow down action when speed is critical. 

In an era where a single tweet, cyberattack, or policy shift can erase billions in value overnight, inaction is no longer a neutral choice — it’s a liability

Examples of Where Decisiveness Counts 

  • Crisis Response: Boards must quickly authorize emergency funding, operational pivots, or communication strategies. 
  • Strategic Shifts: Entering new markets, divesting underperforming units, or responding to disruptive competitors. 
  • Regulatory & ESG Pressures: Navigating sudden changes in environmental, governance, or human rights expectations. 
  • Talent & Leadership Decisions: Appointing or replacing CEOs, especially during periods of underperformance or scandal. 

Barriers to Decisiveness at the Board Level 

Several cultural and structural factors can inhibit decisive action: 

  • Overemphasis on Consensus: Waiting for every director to agree can delay urgent decisions. 
  • Limited Information Flow: Boards reliant on outdated or overly filtered data struggle to act fast. 
  • Boardroom Hierarchies: Strong voices can dominate discussions, while newer or diverse members stay silent. 
  • Infrequent Meetings: Traditional quarterly cycles are too slow for today’s crises. 

Building a More Decisive Board: Key Practices 

1. Adopt Agile Governance Models 

Use ad hoc committees, virtual meetings, and fast-track approval processes for high-risk or time-sensitive issues. 

2. Empower Subcommittees with Authority 

Give finance, audit, or risk committees pre-delegated authority to act quickly within defined parameters. 

3. Integrate Scenario Planning into Strategy 

Simulate crises and stress-test decisions to build confidence and preparedness before real volatility hits. 

4. Use Real-Time Data 

Invest in dashboards and briefings that give directors timely insights — not just retrospective reports. 

5. Cultivate a Culture of Constructive Dissent 

Diverse, independent-minded boards that encourage challenge and debate are more likely to act boldly — and wisely. 

The Role of the Chair: Catalyst or Bottleneck? 

The board chair plays a pivotal role in shaping the board’s decisiveness. A strong chair: 

  • Knows when to accelerate or slow down decision-making. 
  • Encourages clarity over perfection. 
  • Facilitates rapid consensus when needed, without silencing dissent. 

Three Questions Every Board Should Ask Today 

  1. When was the last time we made a bold, time-sensitive decision? 
  1. Do we have protocols for rapid response in times of crisis? 
  1. Are we too focused on process at the expense of impact? 

Conclusion: Decide to Lead, or Risk Being Left Behind 

In the age of volatility, the most valuable boards are not just wise — they are decisive. They blend judgment with urgency, rigor with speed, and oversight with action. For boards in emerging markets, where uncertainty is often magnified, decisiveness is not just good governance — it’s survival strategy. 

When the next shock hits, will your board be ready to lead — or still debating what to do? 


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In a world marked by volatility—from geopolitical friction and cyber warfare to climate shifts and technology disruption—the boardroom is no longer just a site of oversight. It has become a frontline of strategic decision-making, institutional resilience, and societal accountability. 

The traditional paradigms of governance, built for linear and largely domestic business models, are proving inadequate. Today’s board directors are being thrust into a dynamic landscape where global supply chains are fragile, stakeholder expectations are heightened, and decisions carry both reputational and regulatory consequences. 

A Board’s Role Has Fundamentally Changed 

Gone are the days when directors could rely solely on quarterly reports and compliance updates. The new reality demands sharper visibility into digital transformation, risk interdependence, ethical leadership, and long-term sustainability. Boards must now be equipped to grapple with questions that didn’t exist a decade ago: 

  • How do we govern in a hybrid, borderless digital economy? 
  • Are we resilient against not just financial shocks, but also systemic disruptions, such as a cyberattack with geopolitical undertones? 
  • What frameworks ensure our climate commitments are not just stated, but embedded? 
  • How can we assess and challenge the strategic integrity of AI tools used across our operations? 
  • What does fiduciary duty mean in an age where social and environmental performance increasingly drives financial outcomes? 

The Quiet Crisis: Competency Gaps at the Top 

Many boards still function with outdated governance tools and limited insight into emerging domains. In sectors like finance, oil & gas, telecoms, and manufacturing, where the pace of change is relentless, this creates a dangerous disconnect between boardroom decisions and market realities. 

The growing gap between directors’ governance responsibilities and their capacity to effectively fulfill them is now seen as a hidden risk across many industries. And regulators, investors, and even employees are starting to notice. 

What Future-Ready Boards Are Doing Differently 

Boards that are rising to meet this moment are doing three things well: 

  1. Expanding the Definition of Governance 
    They are not limiting themselves to regulatory compliance. Instead, they’re embedding strategic foresight into how they govern digital systems, organizational culture, and innovation. 
  1. Interrogating Risk in Layers 
    Rather than treating risk as a fixed category, forward-thinking boards are viewing it as layered, systemic, and deeply interwoven, spanning from geopolitical exposure to supply chain fragility to algorithmic bias. 
  1. Linking Purpose to Capital 
    These boards are translating environmental and social commitments into financing strategy, brand differentiation, and value creation. They are not waiting for ESG ratings to catch up—they’re setting the pace. 

Rethinking the Learning Curve for Directors 

No one steps into a boardroom prepared to meet all these demands instinctively. This is where tailored, context-driven development becomes vital. Directors need more than technical workshops—they need an ecosystem of continuous learning that aligns with real-time shifts in the world around them. 

They need to understand what it means to lead through ambiguity, to govern digital infrastructure ethically, to ask the right questions about AI and cybersecurity, and to navigate sustainability not as a tick-box, but as an investment philosophy. 

At H. Pierson Associates, we’ve built our Board School to answer precisely this call. With over three decades of experience advising and upskilling boards across sectors, we’ve seen firsthand what separates resilient institutions from the rest—it starts at the top, with directors who are confident not just in their knowledge, but in their ability to adapt, interrogate, and lead through complexity. 

A Final Word: Governance as Strategy 

In times of relative calm, governance is often viewed as routine. But in times like these, governance is strategy. The most valuable asset a company has right now is not just its capital or technology—it’s the clarity, agility, and foresight of its board. 

The future belongs to directors who are willing to unlearn, relearn, and lead differently. And those who do will not only safeguard their institutions—they will shape the next generation of enterprise. 


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Board evaluation is a critical process that helps organizations assess the effectiveness of their boards of directors. In Nigeria, board evaluation is becoming increasingly important as the country’s corporate governance landscape continues to evolve. However, despite its importance, board evaluation in Nigeria faces several challenges. This article highlights some of the key challenges of board evaluation in Nigeria and proposes solutions.

Challenges of Board Evaluation in Nigeria

1. Regulatory Framework

The regulatory framework in Nigeria also poses a challenge to board evaluation. While the Nigerian Code of Corporate Governance recommends that boards should be evaluated regularly, there is no clear guidance on how to conduct these evaluations.

2. Cultural and Social Barriers

Cultural and social barriers also pose a significant challenge to board evaluation in Nigeria. In some cases, board members may be reluctant to criticize or evaluate their colleagues due to cultural or social norms. This can lead to ineffective evaluations and a lack of accountability.

3. Lack of Awareness and Understanding

One of the major challenges of board evaluation in Nigeria is the lack of awareness and understanding of the process among board members and stakeholders. Many boards in Nigeria are not aware of the benefits of board evaluation, and as such, they do not prioritize it.

4. Limited Expertise and Resources

Another challenge facing board evaluation in Nigeria is the limited expertise and resources available to conduct effective evaluations. Many organizations in Nigeria lack the necessary skills and resources to conduct thorough board evaluations, which can lead to ineffective evaluations.

Solutions to Challenges of Board Evaluation in Nigeria

1. Regulatory Guidance

To address the challenge of regulatory framework, it is essential to provide clear guidance on how to conduct board evaluations. The Nigerian Corporate Governance Code should be reviewed to provide more specific guidance on board evaluation.

2. Use of Technology

o address the challenge of cultural and social barriers, it is essential to leverage technology to facilitate board evaluations. Online evaluation tools can help to reduce bias and ensure that evaluations are conducted objectively.

3. Awareness and Education

To address the challenge of lack of awareness and understanding, it is essential to educate board members and stakeholders on the importance and benefits of board evaluation. This can be achieved through training programs, workshops, and seminars.

4. Development of Evaluation Framework

To address the challenge of limited expertise and resources, it is essential to develop a board evaluation framework that is tailored to the Nigerian context. This framework should provide guidance on how to conduct effective board evaluations.

Conclusion

Board evaluation is a critical process that helps organizations assess the effectiveness of their boards of directors. In Nigeria, board evaluation faces several challenges, including lack of awareness and understanding, limited expertise and resources, cultural and social barriers, and regulatory framework. However, these challenges can be addressed through awareness and education, development of evaluation framework, use of technology, and regulatory guidance. By addressing these challenges, organizations in Nigeria can conduct effective board evaluations that lead to improved governance and performance.


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Key issues facing boards of directors in 2025

Strategic Leadership and Oversight
Boards must prioritize strategic leadership and oversight, ensuring alignment with the company’s goals and objectives.

Diversity, Equity, and Inclusion
Boards should focus on diversity, equity, and inclusion, recognizing the benefits of diverse perspectives and experiences.

ESG and Sustainability
Boards must address environmental, social, and governance (ESG) issues, prioritizing sustainability and responsible business practices.

Technology and Innovation
Boards should stay informed about technological advancements, such as generative AI, and their impact on the company’s business model and operations.

Global Uncertainty and Risk Management
Boards must navigate global uncertainty, managing risks associated with geopolitical tensions, economic volatility, and regulatory changes.

Talent Management and Succession Planning
Boards should focus on talent management and succession planning, ensuring the company has a strong leadership pipeline.

Stakeholder Engagement and Communication
Boards must prioritize stakeholder engagement and communication, maintaining transparency and trust with investors, customers, and employees.

Board Composition and Refreshment
Boards should regularly assess their composition and refreshment, ensuring they have the right skills, expertise, and perspectives to drive the company’s success.

Culture and Values
Boards must promote a strong culture and values, supporting ethical decision-making, accountability, and a positive work environment.


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  1. Diversity and Inclusion: Ensure the board reflects a diverse range of skills, experiences, backgrounds, and perspectives to drive informed decision-making and innovation.
  2. Strategic Alignment: Recruit directors whose expertise aligns with the company’s strategic goals and objectives, enabling effective oversight and guidance.
  3. Independence and Objectivity: Prioritize independent directors who can bring objective perspectives, unbiased by conflicts of interest or personal agendas.
  4. Relevant Expertise and Experience: Identify directors with relevant industry, functional, or technical expertise to provide valuable insights and informed decision-making.
  5. Leadership and Governance Skills: Recruit directors with proven leadership and governance skills, including the ability to engage in constructive debate, build consensus, and hold management accountable.
Additionally, consider factors like:
 
– Director tenure and term limits
– Board size and composition
– Director compensation and incentives
– Ongoing training and development
– Succession planning and board renewal

By addressing these issues, organizations can recruit high-quality board directors who drive long-term success and sustainability.


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Abstract- This article talks about need of Directors Training as well as it summarizes what the law requires in different jurisdictions, and at the end it distinguishes for each country whether these requirements are mandatory or voluntary. In a world of instant communication and ever changing business models, the traditional task of the Professionals in business is evolving. The mounting drift focus on:
• Increased governance requirements
• More regulations
• More emphasis on documentation
• More intervention from governments

Together with guiding corporate strategy, the board is chiefly responsible for monitoring managerial performance and achieving an adequate return for shareholders, while preventing conflicts of interest and balancing competing demands on the corporation. Now more than ever, directors need to understand their fiduciary, legal, and ethical oversight responsibilities hence the bar has been hoisted. Board of directors must focus more on economic performance, not conformance. Public confidence in corporations has reached an all-time low and the role of directors has become even more challenging and demanding.

Besides, Governance-related policy changes introduced in recent years have increased the focus on the experience and qualifications of corporate directors. Accompanying these changes is an increased expectation that companies and boards take affirmative steps to ensure directors are prepared to address emerging opportunities and challenges. The board of directors has had often the business shrewdness, but lack a deep grasp of corporate governance or the leadership skills required to reform policies, practices, and behaviours that can undermine a company’s performance.

Today’s boards of directors are facing an unprecedented level of scrutiny and pressure from regulators, investors, media, institutional investors, and other stakeholders. Besides, Directors’ training and development is fundamental element in enhancing board effectiveness and can help board members be better prepared to tackle misgiving. An effective board education program offers ongoing educational opportunities that help board members continuously cultivate skills that heighten the overall effectiveness and performance of the board.

Boards today can be a competitive advantage for companies. They can provide an outside view, overcome blind spots in strategy, raise awareness of external risks, connect with governments, society and other stakeholders, give credibility and build trust in ways that executive teams cannot. But most board education programs today add little value and instead either focus on the regulatory environment or copy existing managerial education for senior executives. But boards need more than this to become effective. For example, the board’s strategic role is different from the strategic role of executives. It ranges from supervision to co-creation of supporting the executives

The Board of directors not only monitor the company’s innovation performance, they actively contribute to it. Board diversity is key in this regard as board members from other industries are faster to foresee sudden industry shifts or disruptive moves. Employee representatives can also be an excellent source of innovative thinking. Board education is failing to address many other important questions, such as which structures enable boards to add real value, as opposed to mere regulatory compliance. And, most importantly, what makes an individual a good board member. 

Besides, Board development and training is important because today’s chief executive officers (CEOs) are overstretched and confronted with an incredible rise in complexity of society, governments, alternative business models, global changes, new risks and opportunities and shifts in economic conditions. Even the best executives cannot be expected to respond consistently to all these challenges.

As organizations strive to compete in the global economy, differentiation on the basis of the skills, knowledge, and motivation of their workforce takes on increasing importance. According to a recent industry report by the American Society for Training and Development alone spend more than $126 billion annually on training and development. Undoubtedly, Education is important, but people learn from their practical experiences much better as compared to bookish knowledge. Now a days training and development has been the most important factor in the business world because it increases the efficiency and the effectiveness of both directors and the organization.

OCED in 2004 avowed that in order to improve board practices and the performance of its members, an increasing number of jurisdictions are now encouraging companies to engage in board training and voluntary self-evaluation that meets the needs of the individual company. (Principle VI.E.3)

a)Orientation of Director on Board
The move from being a manager to a directorship or from director to chairman is more than a change in responsibilities; it is a major change in behaviour and identity. Most of directors will have been becoming more experts in a narrower field, or focusing only on the interests of a single department. Suddenly, a need to have equal responsibility for all departments scanning the external environment for opportunities and developments and joining a new, elite, group at the top. Their need and requirement is different from the seasoned and full time director working with other board of similar or different product line.

Numerous companies are faced with the need to make a step change in the way they operate, perhaps when the business has grown from small, informal beginnings to a point where a more structured organization is appropriate. Effective company directors understand that directing the organization is much more than managing it.

They aim to maximize their contribution to the work of the board and ensure that they achieve high performance in all aspects of their role as company director. The difficulty is for the newly-appointed company directors manage their transition to the board effectively, by explaining both the theory and the practice of corporate governance and by building on
their existing competencies.

b) Why is it Important to Welcome and Train new Board Members?
A proper welcome and training will help new members:

• Take on their roles in the organization both quickly
and comfortably;
• Feel more connected to one another;
• Feel more connected to the organization;
• Better understand their role on the Board;
• Operate from the same “script” that is, to
understand the vision, mission, and their roles in the
organization;
• Feel more motivated to do a better job.

i. Ideal Training Objectives
The training objectives of the new director(s)
must be:
• A knowledge of the law relating to company
directors’ liabilities;
• A better appreciation of how to apply the principles
of corporate governance to building an effective
organization;

An insight into how to balance the different aspects of the company director role – governance, entrepreneurship and management;

• A clear understanding of the leadership and organizational issues involved in stakeholder management and performance delivery;

• A sharper focus on their own competencies and how they can be further enhanced in order to maximize the effectiveness of their dealings with the rest of the board as well as with the organization as a whole.

 

Source: globaljournals.org


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African Boards of Directors should possess the following TECHNICAL SKILLS for best performance:
 
  1. Financial Literacy: Understanding financial statements, budgeting, and financial reporting.
  2. Strategic Planning: Developing and implementing strategic plans, setting goals and objectives.
  3. Risk Management: Identifying, assessing, and mitigating risks, ensuring compliance with regulations.
  4. Governance and Compliance: Understanding governance structures, ensuring compliance with laws and regulations.
  5. Digital Literacy: Understanding digital technologies, leveraging technology for business growth.
  6. Data Analysis and Interpretation: Interpreting data, making informed decisions, driving business growth.
  7. Cybersecurity: Understanding cybersecurity risks, implementing measures to protect against cyber threats.
  8. Environmental and Social Impact: Understanding environmental and social impact, ensuring sustainable practices.
  9. Human Resources Management: Understanding HR best practices, ensuring effective talent management.
  10. Industry Knowledge: Staying up-to-date with industry trends, developments, and best practices.
  11. Communication and Interpersonal Skills: Effective communication, building strong relationships with stakeholders.
  12. Leadership and Collaboration: Demonstrating leadership, building collaborative teams, driving business growth.
  13. Innovation and Entrepreneurship: Encouraging innovation, driving entrepreneurship, and business growth.
  14. Global Perspective: Understanding global markets, trends, and best practices.
  15. Continuous Learning: Committing to ongoing learning, professional development, and staying current with industry trends.

By possessing these technical skills, African Boards of Directors can drive business growth, ensure effective governance, and create long-term value for stakeholders.


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McKinsey conducted a global survey of more than 1,000 directors and found that “boards with better dynamics and processes, as well as those that execute core activities more effectively, report stronger financial performance at the companies they serve.” This shows how important an effective board is to a business and why you should invest in your board of directors’ development.

The more your board develops, the better equipped it is to face the challenges of a fast-moving business landscape. The way directors tackle the challenges and emerging compliance issues is key to gaining that competitive edge over your peers.

Furthermore, Karen Brice, director of governance and board advisory at Grant Thornton remarks “executive and non-executive directors alike tell us that, if their board isn’t adapting fast enough to provide the kind of leadership that is needed to protect and grow the organisation, they could face an increasing sense of isolation from management teams.”

WHAT IS BOARD DEVELOPMENT?

Board development is the process of helping your directors gain access to resources that enable them to improve their individual and collective performance and effectiveness. This could be:

  • Sharing best practices

  • Undertaking specific training for continual improvement

  • Filling skills gaps

  • Increasing board diversity

  • Regular evaluations to assess progress

  • Having a defined role to focus on

  • Providing access to relevant papers and reports

The benefits of regular director training

There are a number of benefits of undertaking regular director training, for everyone from CEOs to new board members. These include:

Helping forge bonds

Corporate boards do not have the time to forge close bonds if the only time they interact is during meetings. Bringing them together out of the business environment allows them to network in a less formal space where they can be more relaxed and get to know each other better.

This connection can only help in future meetings, making miscommunication less likely, as directors understand each other more deeply. It aids collaboration and facilitates more productive discussion because the members who disagree are less likely to do so with hostility and will be more inclined to find an amicable solution.

Futureproofing the organisation

The business world is growing and changing all the time, with new capabilities, possibilities and risks entering our consciousness. Regular training helps you avoid treading water and keeps you competitive by ensuring you are on top of new technology and current best practices. Besides, it helps you navigate potential corporate minefields in the short, medium and long term.

Training arms your directors with the tools they need to take advantage of the governance landscape and making it a regular activity means that they are always aware of recent developments and predictions.

Encouraging better decision making

Training gives board members better clarity when it comes to early recognition of problems and difficulties for the business. This allows discussions to take place early, in a less pressured manner, giving the board breathing space to fully debate and develop a solution that works.

Without this ability, the board might not recognise a critical threat until it becomes an urgent issue, meaning that there is a tight deadline on decision-making and less time for reasoned, insightful discussion.

7 steps to better director development

1. Evaluate the current composition

The composition of the board is vital in director development, as it dictates the array of competencies and experiences, as well as attitudes, that make up the board. Understanding your current board composition allows you to decide what training would benefit the individuals and, therefore, the collective. This will form the basis of your recruitment strategy.

Here are some elements that you should consider:


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2. Revise board structure

Based on the discussions you have about composition, you can expand to look at the structure of the board as a whole. How can it be improved to facilitate a better flow of information and decision-making?

Is the structure working well right now? If so, consider if this will be the case in the future and consider what changes are needed to keep it fresh and effective.

3. Write down role descriptions

Almost every job that someone applies for has an extensive role description, detailing exactly what the company will expect of the successful candidate. It makes sense that the board of directors works in the same manner. When new directors are recruited to the board, they are there for a reason and not just to make up the numbers around the boardroom table.

Each director should understand what is expected of them so that they can focus on how best they can contribute to the success of the organisation’s strategy. Writing down detailed role descriptions for directors is essential for development as it guides them down specific paths and allows them to think more strategically.

4. Conduct a skills audit

Once you have role descriptions, you can audit the skills possessed by your current board and analyse how they can be developed in order to fulfil those role responsibilities.

If a director is expected to understand the market in-depth, but they have only basic knowledge of the industry, this is a skill that you need to develop through training or recruitment.

Personal development training is one way to address this skills gap. In addition, you could organise team training sessions or boot camps.

5. Set a clear vision

In order to further hone your audit, you need to understand where you want to go. This dictates the skills you need to achieve your aims. Having a clear vision of the board contributes in the same way that writing specific role descriptions does.

It provides goals for directors to work to and a way of measuring progress. If you can benchmark where you are and understand where you want to go, it is easier to see what needs to change to help you achieve your strategic goals.

6. Carry out annual reviews

Board evaluations are essential to ensuring directors are successfully working towards the collective vision. By understanding what you have or haven’t achieved in the preceding 12 months, you can shape the direction of work for the next year in a manner that will increase effectiveness.

An annual board review looks into the work of the board individually and as a collective, uncovering skills gaps, collating feedback, clarifying objectives and much more. Using Boardclic’s Board Evaluation tool, you can utilise this benchmark data to understand what success actually looks like in your sector and to give you a competitive edge over your peers.

7. Organise refresher training every year

Induction is one thing but regular training should also be a part of your director development programme. It is also important to refresh directors’ existing competencies every year. This helps to foster a culture of continuous improvement, which encourages board members to keep striving to greater heights.

The best performing boards do not rest on their laurels but spend time reflecting on their skill sets, improving and expanding them.

FAQ

How can you encourage directors to attend training?

Encourage individual board members to attend a training programme by giving them control over the training they undertake. Rather than booking training sessions and then fitting your directors into the slots, hold a discussion with the board where you encourage members to suggest types of training that they would like to attend, within the areas in which you would like to see development.

Ensuring the style of training fits the schedule of the individual director also helps. Some board members just do not have the time to spare to attend a three-day boot camp workshop. They would probably benefit more from bite-sized sessions instead.

Do you need a board development committee?

You do not have to have a board development committee, but it does make the process of identifying training opportunities, organising activity and tracking success much easier.

When it functions properly, it contributes to a diverse and well-rounded board that is best equipped to tackle the challenges and embrace the opportunities thrown at it. These committee meetings can help provide executive teams with specific guidance on how to best equip themselves to fulfil the responsibilities of the board.

How to measure board development success?

The success of your executive board development is borne out in the effectiveness of the board overall. You can measure this using Boardclic’s board evaluation platform. It can track your progress in each specific area against both your own benchmark and that of the industry in which you operate.

Conclusion

There is no option to stand still in the corporate world, and that certainly applies to board of directors development. Growing skill sets and expertise as well as consistently seeking out best practices and emerging risk factors are both essential to being able to compete, increase resilience and steer an organisation along the right path.

An important element of board development is your annual board evaluation. It can help you discover skills gaps, pinpoint critical challenges and create an open and transparent, collaborative environment. 

 

Source: boardclic.com


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A healthy board culture is increasingly recognized as an important element of board performance. But unlike other areas of board governance — composition, risk, succession and strategic planning or financial reporting, for example — board culture is less clearly defined and understood.

When asked about their culture, boards tend to speak in generalities, describing it in terms such as “collegial” and “engaged.” While true, those descriptions apply to many boards and don’t go deep enough in distinguishing one board from another — or provide the insight boards need to understand the role the culture is playing in overall board performance.

Two related forces have made the topic of board culture more urgent for many boards: growing stakeholder scrutiny on board performance and increasing board diversity.

In the past several years, shareholder activism has been gaining momentum. Investors around the world have become more active and vocal, seeking deeper engagement with the companies they invest in, using their influence to drive improvements in governance and holding boards to account on a wide range of issues, from strategy and performance to composition and CEO pay.

With less implicit understanding among directors about how the board should behave, it’s more important than ever to define and manage a board culture.

In some regions, the increase in board diversity is an outgrowth of investor pressure on performance. With research showing that companies with more diverse boards perform better, many investors are pushing boards to increase their diversity, especially gender diversity. Boards themselves recognize the value of injecting a broader set of perspectives into boardroom conversations, and are adding directors from other countries or different industries or increasing the gender, ethnic or age diversity of their composition.

Boards are adding new perspectives to enhance board deliberations and improve outcomes, but greater diversity also increases the opportunities for misunderstanding and conflict among directors with different points of view and backgrounds. In the past, boards tended to be more homogeneous and, as a result, there typically was more implicit agreement about how directors should interact and behave. Directors’ shared assumptions and similar experiences made decision making more efficient.

Today, with less implicit understanding among directors about how the board should behave, it’s more important than ever to define and manage a board culture to facilitate constructive interactions between board members. For boards striving to be more dynamic, performance-oriented and shareholder focused, getting culture right is key.

Board cultures tend to be more heavily weighted in one of four main culture styles: Inquisitive, Decisive, Collaborative or Disciplined.

What is board culture?

A board’s culture is defined by the unwritten rules that influence directors’ interactions and decisions. These include the mindsets, hidden assumptions, group norms, beliefs, values and artifacts (such as the board agenda) that influence the style of director discussions, the quality of engagement and trust among directors, and how the board makes decisions. Board culture also is influenced by the style of the board chair and/or the CEO. Boards can vary by region; in some national or regional cultures, for example, a more direct style is well-accepted, but in others, a more “diplomatic” approach is expected in the boardroom. Absent a dramatic change to composition — from a merger or addition of activist-backed directors, for example — board culture tends to evolve slowly because boards meet and interact intermittently.

We have developed a model for diagnosing and understanding board culture, drawing on extensive research showing that there are two dimensions of culture: attitudes towards people (individual versus collective) and change (flexible versus stable). These same dimensions can be used to evaluate organizational and team cultures as well. In fact, a comprehensive study1 of organizational culture and outcomes found that companies can define and create an optimal culture that leads to better business outcomes when they have a framework for evaluating culture and the tools to manage it. We have found that many of the same principles apply equally well in the boardroom.

In practice, we observe a wide range of working styles and dynamics in the boardroom, yet in our experience, board cultures tend to be more heavily weighted in one of four main culture styles:

  • Inquisitive: These boards value the exchange of ideas and the exploration of alternatives.
  • Decisive: These boards are focused on measurable results, driving a focused agenda and outcome-oriented decisions.
  • Collaborative: These boards value consensus and having a greater purpose.
  • Disciplined: These boards emphasize consistency and managing risks and prioritize planning and adherence to protocols.

None of these styles is objectively better or worse than any other. The culture of a board should align with the business strategy and broader business environment and the requirements for working effectively with management. For example, companies in very dynamic industries, when strategy must be reviewed and reinvented frequently, may benefit from a board culture that is more inquisitive and flexible, where directors question assumptions and value the exchange of ideas. When managing risk is a top priority, boards may need to be more disciplined about monitoring results and performance, and following established protocols to ensure the accuracy of disclosures.

How to change board culture: four questions to consider

Because board culture is an important driver of board performance, a natural time to assess board culture and how it supports strategy is during the board’s annual self-assessment. Using an agreed-upon framework and vocabulary like the one Spencer Stuart has developed, boards can diagnose their current board culture and agree on a target culture. A board may want to evolve its culture if it is underperforming, when there is a new CEO or its own composition is changing, or when the business strategy is changing. For example, in a crisis or turnaround situation, a board may want to be more decisive and results-driven. At a strategic inflection point — when the organization needs to figure out new markets, new products, where to invest in acquisitions or innovation — a board may need to be more inquisitive and flexible.

Once the board has identified a target culture, directors can ask the following questions to help shift the board culture.

Do we have the right people in the boardroom?

Boards consider a variety of factors when recruiting a new director. When they want to evolve board culture, boards can consider an additional lens: how a director would help shift dynamics in the boardroom toward the desired culture. For example, a board that wants to become more decisive and results-driven may want the next director to have a no-nonsense, by-the-numbers style, perhaps a CFO profile. A board wanting to become more adaptive and inquisitive may look to add an entrepreneur or an innovator.

Are we structuring our discussions and assignments to focus on the right issues and activities?

Boards can reinforce their priorities by structuring committee and board assignments and meeting agendas in a way that supports the culture they want to create. A board seeking greater collaboration and openness to the ideas of all members may want to close discussions by “going around the table” and soliciting comments from each director.

Do board and committee leaders model the desired board culture?

The board chair has a profound role in shifting the board culture. The chair (or lead independent director) can move topics requiring the most board focus and energy earlier in the agenda, leaving the less strategic items to later in the meeting. If the board needs to become more inquisitive, the chair may decide to reduce the time devoted to operational reviews to leave time for the exploration of strategic alternatives. On a board that has decided to become more disciplined, the chair can direct a change in the board materials and build more structure around discussion topics.

The board chair or lead independent director and the committee chairs also can influence culture by how they model the desired culture. When a shift is needed, board leaders can guide discussions differently, encouraging or cutting off discussion as appropriate. They also may evolve pre-meeting activities, for example, creating a mechanism for directors to ask questions in advance of a board meeting.

A board may want to evolve its culture if it is underperforming, when there is a new CEO or its own composition is changing, or when the business strategy is changing.

Do we as individual directors consider how we are contributing to the culture?

As directors become more comfortable with the language of culture and more self-aware of how they are promoting or working against the target culture, they can provide feedback to one another on behaviors that may need to change. Just calling attention to directors’ habits and assumptions can help the board adapt its behaviors. Depending on what’s needed, the board also could provide a coach, group training or individual training on topics such as decision making, trust building or communication styles. Boards can use their annual self-assessment to evaluate their progress in moving toward the preferred culture.

On an individual basis, directors can reflect on their own behaviors and whether they are helping to shift the culture. On a board that’s overly collegial or collaborative, for example, directors can consider whether they need to weigh in on every topic. Or if the board wants to become more inquisitive, directors can decide to speak up more.

Starting to understand your board culture

When it’s able to diagnose culture, a board can evaluate the role culture plays in board performance and consider whether there are elements of the culture that need to change. Having a common language about the culture and identifying directors’ preferred styles helps board members understand and adjust to the preferences of one another and make better decisions about the potential culture fit of new director candidates. To provide a sense of various board cultures based on our model, we have plotted several examples of board culture below.

Culture

Author: George Anderson


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