The directorship in any organization must have the agility to move the needle forward and build strong leadership capabilities to advise, inspire, and motivate a group of people toward accomplishing shared visions and goals wisely.
Contemporary board directors today need to understand things and circumstances holistically, and ask themselves and others deep questions, to ensure they can deal with various leadership and governance dilemmas and handle complex problems wisely.
Overcome group thinking: In an Abilene paradox, a group of people collectively decide on a course of action that is counter to the preferences of many or all of the individuals in the group. You'd think that a group would tend to democratize the diversified viewpoint and moderate individual points of view. The opposite often occurs. If BoDs practice the same “inbox” thinking, without the cognitive difference, group thinking will still rule the day.
It's important to explore governance pitfalls associated with group thinking and the lack of checks and balances in decision systems. The corporate boards play crucial roles in taking oversight of strategic management and enforcing GRC disciplines. The best fit for the corporate board depends on the Board’s current makeup, culture, and which “gap” needs to be filled. The goals for building an effective corporate board are to accelerate business performance and increase risk intelligence.
Breakdown Bureaucracy: Bureaucracy is often caused by overly rigid structures or business processes. Bureaucracy causes stagnation. Organizations, like individuals, need to be in flow to operate smoothly. It's important to analyze the negative consequences of excessive regulations, inefficient processes, and bureaucratic hurdles in business systems.
With strong governance, a high level of risk intelligence, and effective compliance, digital organizations should be a complex, but flexible social system starting to appreciate business attributes such as readiness, ownership, integration, open communication, customized structuring, and multifaceted partnerships.
Enforce Policy Implementation: Bad policies discourage people from making progress or cause them to become part of problems. Thus, top leadership teams such as BoDs should enforce their understanding of the correlations between policy setting and problem-solving. Examine governance pitfalls stemming from poor leadership, inconsistent policy execution, and inadequate accountability mechanisms in running a high-performance organization.
Effective policies fit purposes to enforce order from chaos; encourage good behaviors and lead progressive changes. Good policies set the right tone of improvement and promote transparency, trust, respect, creativity, open communication, collaboration, people-centricity, etc.
With increasing paces of changes and interdependence of the business ecosystem, the directorship in any organization must have the agility to move the needle forward and build strong leadership capabilities to advise, inspire, and motivate a group of people toward accomplishing shared visions and goals.
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