Introduction
Openness and honesty is essential to good governance. This article addresses eig
ht questions asked by the best board members.
1. Information
Board members and CEOs need good information. They are expected to understand the analytical techniques required to decode the future and m
ake effective decisions. Unfortunately, many source of information are designed to provide people with what they want to hear. It does not always provide true insights about real risk and short- and long- term opportunities.
Question: Am I putting my emotional comfort ahead of maki
ng decisions based on real and sometimes uncomfortable information?
2. Assumptions to Trust
Often there are people in organizations who are trusted to research trends, analyze their potential impact on the board, and report the possibilities to decision-makers. At this point it is assumed that board members can determin
e whether or not the information provided is based on accurate assumptions.
Question: Do I have the ability to critically assess the information I am provided and identify when the underlying assumptions are outdated or invalid?
3. Sources to Trust
Board work can be challenging. Various stakeholders can hold differing points of view and access to many sources of data. Therefore, it is vital for board members to be as vigilant as possible about its sources of information.
Question: What sources of strategic intelligence, forecasting, scenario planning, and risk identification are available to keep me informed and lead our board safely through
tumultuous situations?
4. Strategic Governance
Boards trust their CEOs to manage effectively, understand political risks associated with various decisions, and avoid unnecessary liabilities for the organization. Many CEOs claim to practice state-of-the-art strategic management yet their boards find themselves faced with situations which are privately and publicly difficult to handle.
Question: Can I identify and explain the mechanisms used by this board to deal with difficult or controversial situations?
5. CEO Reliability
While people may be pretending to follow intelligence, impostors in both the analyst and executive camps actually follow shallow, fake processes that justify their existing decisions and past outcomes.
Question: What criteria does this board use to determine whether the CEO is being open and honest with the board and evaluating all risks prior to making decisions?
6. Decision Making and Organizational Effectiveness
In many organizations, roles are far from clear. Boundaries are blurry. It is possible for people to feel as if responsibilities are being pushed downward while the willingness to take credit for positive accomplishments is pulled upward. Decision making can be a slow painful process. Employees and board members can avoid risks at all costs. This kind of thinking can kill innovation and forward-thinking.
Question: Are our roles clear? Do you allow individuals to be creative and innovative? What risks are we willing to take? Are we willing to support our board and our employees when outcomes are less than those desired?
7. Willingness to Listen
It can be difficult to listen to information which does not support our opinions. Therefore, it is incumbent upon board members to monitor boardroom behaviour to ensure they are supportive of critical thinking, open to a variety of opinions, willing to weigh all options, and debate factors critical to achieving the desired outcomes. Openness and honesty are critical.
Question: How do we ensure that everyone is heard, diversity is honored, and we do not shut down debate on critical issues?
8. Competing to be Heard
For too many board members and CEOs, foresight is a luxury given the many issues which are faced on a daily basis. Policies are made which affect boards’ and businesses’ plans. Therefore, it is possible to ask, “Why plan for the future when there are so many unpredictable variables influencing us?” This is a good question. Its answer does not absolve boards and businesses from strategically planning to grow or maintain their current status. Every entity is competing for someone’s attention.
Question: Who is listening to whom? How do we get our messages heard? What are our strategies to get others; attention and achieve our desired results?
