The Sunday Mail
BoardroomTalk
Dr Proctor Nyemba
As Zimbabwe is pursuing a middle-income economy by 2030, organisations play a pivotal role in driving towards that vision. Globally, organisations assumed a dominant position in facilitating sustainable economic transformation.
This places corporate boards at the centre of, not only organisational effectiveness, but economic transformation.
The strategic thinking and strategic leadership roles of boards are critical in manifesting the innovation and industrialisation agenda. Mahatma Ghandi said “A small body of determined spirits fired up by an unquenchable faith in their mission can alter the course of history.”
Therefore, boards members must be visionaries, mission-critical, passionate and results-focused.
In today’s highly competitive and dynamic environment, we need to increase our efforts of creating exceptional boards.
This has ripple effects that can be seen through healthy and resilient organisations, and even economic transformation. Exceptional boards give organisations corporate direction, dignity and discipline.
Through effective board leadership, such boards create high-value organisations.
Some of the roles of exceptional boards include steward of the organisation, model of corporate values and core values, custodian of strong governance, strategist, risk and scenario planner, public face and market maker, custodian of capital markets and global advocate.
These are power-roles, transforming and magical roles, as it seems success is guaranteed once we have these roles.
The roles imply that board members act as trusted sources of advice and counsel to organisations.
Interestingly, rather than mere chattering about these roles, exceptional boards takes serious the strategic thinking and strategic leadership roles.
The King Report identifies the following board roles:
◆ to define the purpose of the company
◆ to define the values by which the company will perform its daily duties
◆ to identify the stakeholders relevant to the company
◆ to develop a strategy combining these factors
◆ to ensure implementation of the strategy
A review of the King Report roles indicates that exceptional boards have a dual mandate: advisory and oversight of the organisation and all its affairs.
There are numerous factors to determine the level of board exceptionality.
In addition, to determine board effectiveness, it is also important to consider: depth of interaction between the board and management, board of directors’ business savvy and stakeholder focus, commitment to fulfilling expected board functions, pro-active risk management, upholding to ethical standards, and ability to inspiring shared vision and embedded sustainability.
Other equally important determinants of board exceptionality include board members’ competencies and experience, board size and frequency of board meetings.
Due to the broadened understanding of the purpose of corporations, the focus on board roles has been shifting towards a hybrid corporate governance model that prides in both the pedantic rules-based model and the principles-based model.
The hybrid or enterprise-wide model also considers the performance and conformance governance dimensions while integrating nascent developments such as Artificial Intelligence.
This systems thinking perspective has been necessitated by the increasing reports of corporate governance deficiencies in most jurisdictions.
The blending of universals (know-that) and particulars (know-how) in corporate governance discussions and practice is essential to enhance corporate performance (as measured using economic, environmental, social and governance metrics).
The demise
The directorship title has been abused in recent times due to the increasing ‘entrepreneurship chattering’ or probably a misunderstanding or misinterpretation of the notion that everyone is a leader.
The need to redefine corporate directorship and reassess our directorship cannot be overemphasised.
There is need to emphasise conversations that pride in the essence and principles of corporate directorship rather than the view of such noble function as a mere title.
Good directorship aces adaptability, prides in strategic thinking and strategic leadership, creates engaging work cultures, and leads change.
Exceptional boards are a development imperative.
There is need for scholars, educators and practitioners to search the long lost link of strategic thinking and strategic leadership in corporate boardrooms.
Good board members exhibit passion, commitment and vision; and they articulate these clearly.
Assess your board involvement.
Lead!
Dr Proctor Nyemba is Certified Professional Director®-Pro.Dir specialising upon Governance and Strategy, Governance and Risk, Governance and People, Governance and Board Effectiveness, Governance and Resources, Governance Culture and Behaviour. Proctor helps board members and executives understand their role in governance so they can succeed in the boardroom. Feedback :[email protected]
