Creating the Right Board Culture
Boy, do we have a lot to learn – and isn’t it great! At Cairney & Company we have 30 years’ experience in the education and not for profit sectors, but as well as sharing our expertise we believe in continuously learning through challenge and questioning. That’s why we’ve launched our Conversations series - to bring together a range of experts to share their valuable insights with you.
A wide range of experts came around the table for our first Conversations event, from Independent School Heads, to donors, trustees and Directors of Development to discuss Creating the Right Board Culture.
The Value of Values
Values are front and centre when creating an effective board – both the value base that potential board members bring, as well as ensuring they understand the core values of the organisation and can demonstrate them through their actions.
Dame Joan Stringer, the former Vice-Chancellor of Edinburgh Napier University summed it up: “Recruiting people who mirror the values of the organisation is crucial and the role of the Chair ensures this takes place”.
So, how do you achieve alignment? One guest worked with a recruitment company who had conversations with potential board members. This wasn’t a common experience but was food for thought - a well briefed, external reviewer can have early and frank conversations with potential candidates.
However you go about it, being crystal clear during the recruitment process is key; ensuring your board is clear about your values and how they’re expected to embody and demonstrate them. That goes beyond a list of beautifully descriptive words laminated and pinned to a wall. Ultimately, actions speak louder than words.
How diverse is your board? Our guests agreed they should reflect the communities they serve. This diversity can be through a balance of gender, age or ethnicity, but can also be cultural or geographical.
Michele Obama said: “I have learned that as long as I hold fast to my beliefs and values - and follow my own moral compass - then the only expectations I need to live up to are my own”.
Authenticity is important – if your values aren’t their values, it’s not going to work.
The Role of the Chair
“It is the Chair that influences the direction of travel for the Board,” Norman Springford, Director, Apex Hotels Ltd.
The relationship between Chair and Chief Executive is critical and based on mutual respect, trust and transparency. The Chair must ensure board members mirror the organisation’s values and facilitates the more challenging conversations with the CEO and wider team. Guests cited an ineffective relationship between Chair and CEO as contributing towards the collapse of a recent high profile company; highlighting the need for open and transparent challenge, as well as the benefit of seeking external advice when appropriate.
One guest described a thorough and open 360 degree evaluation process of both staff and board members…”this led to some challenging conversations with Trustees about change, their role and relationship with the Executive, but the hard work paid off, bringing about a whole new level of independent thinking”.
Another guest spoke of being on a number of underachieving boards where the norm is to be “cosy comfy” while things are going well. We all agreed that where there is no challenge or debate, complacency will fill the void.
As Benjamin E. Mays reminds us: “The tragedy of life is often not in our failure, but rather in our complacency; not in our doing too much, but rather in our doing too little; not in our living above our ability, but rather in our living below our capacities.”
Conversation recommendations:
The heart of a successful board is its people. Those you recruit must be aligned to your institutional values and demonstrate these through their actions
A trusting and transparent relationship between the Executive and the Board, where each knows their responsibilities, is vital to success
It’s important to ensure challenge (but not mayhem). Take a “cosy-comfy” check of your board. Are they asking the right questions of internal and external groups? Can they make tough decisions? If not, what steps can you take to change it?
It’s important your board reflects who you are as an organisation. If not, how can you ensure it does in the future?
We’d love to hear your board experiences. Please get in touch at marketing@cairneyandcompany.com or visit our website at www.cairneyandcompany.com