The Wisdom of Chartered Directors: Getting Effective Solution from the Board
Writer: Sorayuth Vathanavisuth, Ph.D.
It is a common knowledge that working as a team can result in an outstanding performance beyond a highly capable person can do alone. In any Board of Directors, a member is always a highly capable Director with impressive professional and educational background. Each one of them, is also passed through strict criteria and approved by shareholders. However, since they, the Directors, are highly capable, it does not mean they can work together in harmony.
“Coming together is the beginning. Keeping together is progress. Working together is success”, Henry Ford once said. Working together means Director can truly synergize and bring organization to the next level of better performance and sustainability. In this regard, Board members may want to consider following suggestion as food for thought.
Decision with quality
Directors of the Board have to make tough decision which bears consequence with the organization for long time. No matter traditional or unconventional nature of issue, Directors are suggested to solve the issue with following rational skills & processes which are:
Situation analysis: Directors should try to gather fact of situation as much as they can in order to obtain proper information and data. Also, with the right approach of question & answer and listening skill, Directors should have possibility to analysis the situation in the right way.
Identifying right objectives: Upon knowing the current and possible situation, in the future, Board members should set the right purposes or objectives. For example, when Kodak faced difficult financial performance, one of possible objective may be moving forward with Kodak’s own technology (Kodak is the first one who invented digital camera). Surprisingly, Kodak decided to stick with business purpose of selling film, as the cash generator, which is now proven as an outdated product.
Simplifying the issue: Separating the problem into small and manageable part can help decision maker to clearly see how to handle the big picture of the issue. Besides, the smaller the problem, the easier to communicate and convince others to accept the decision.
Valuing alternatives: Some of successful Board members may have a fixed idea in the form of one option and no alternative. It may be right to mention at the beginning that Directors should consider more than one alternative. Hence, the discussion will be handled properly and without fixed attitude towards one scenario.
Projecting the consequences: Each alternative should be addressed together with pros and cons in order to see the whole picture. This practice can help clearing any doubts among Board members. If the Chairman allows proper time to share views from some who have concern, it can also encourage synergy among Directors.
Decision with acceptance
Discussion during Board meeting is not an easy task due to the fact that Directors must make several difficult decisions in each meeting. Agreeing with others’ opinion is one of alternative Directors may want to proceed. Below suggestion may be helpful to allow a Director’s idea to be accepted by another Directors.
Listening (Hearing): It is important for Board members to remind themselves to listen, and hear, to another members suggestion first. Since human being roughly communicate 30% verbally and the rest of 70% via body language, ones must be careful to demonstrate listening with the whole body. This means they must ensure eye contact with speaker, another Board member, proper gesture during others’ speech, etc.
Supporting: Generally speaking, it is not normal to find perfect idea from verbal communication especially responding of others’ comment due to limited info. and time. However, it is a good opportunity for Directors of the Board to try to find the good point or strength of this particular idea. Then, they should find proper way to support the idea with the right cause.
Inclusive leadership: Behaving as an Inclusive Leader will encourage Board members to find the way to bridge different way of thinking to be in the same and practical solution. It is easier said than done. But with strong intention, numbers of successful Directors already overcome this difficult path.
Embracing the difference: Board members should embrace different views over the issue. The more another Directors speak up their minds, the less conflict will be since they can release worrying of denying from others. Conclusion of the meeting may lean towards idea of a particular Board member but it does not mean this person just win the debate. It is collective win among the team of Directors.
Effective solution
Only good quality decision alone cannot result in superb team performance. Also, allowing acceptance, of decision, may not always yield an outstanding performance as well. Lacking of acceptance, although major of Directors may vote to agree on the issue, may cause low commitment to execute according to plan (as agreed). While having high degree of acceptance does not guarantee successful because that decision may be based on poor judgement or low quality of decision.
According to Robert A. Cooke and J. Clayton Lafferty, these two critical elements, quality and acceptance of decision, must go together in order to generate effective solution. Although, some Boards are truly aware and adopting similar approach, unfortunately, many of Directors may still behave in less effective way. They may either focus on their own solutions and do not want to listen others’. Some may enjoy privilege of following the one who controls (in most case – Chairman of the Board).
However, at the end of the day, it is the duty of members of the Board to ensure that they truly work in harmony which can result in sustainable performance in the long term.
Disclaimer: This article is written for educational purpose only.
Sorayuth Vathanavisuth, Ph.D. is a DCP 3 & CDC10 - Graduate Member and former facilitator of DCP’s Strategic HR section. He can be reached at sorayuth@sealeadership.com.
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