Thoughts on board renewal and rotation - Journeying towards a vision
The need for change is inevitable and this also applies to boards. Let’s take a closer look at board renewal and contemplate a bit. The following observations have been made when interacting with our existing and to-be customers. Enjoy the ride!
An effective board defines the company's purpose and then sets a strategy to deliver it, underpinned by the values and behaviors that shape its culture and the way it conducts its business.
All improvements start with an honest assessment
The questions that should be asked and answered are as follows:
Is the board optimized for today’s and tomorrow’s needs? Foundations may have changed.
What is important and what is not important anymore?
Is the board adapting to the environment and driving strategy at the rate the environment demands?
Is the board weighted and balanced correctly?
Are there eventually gaps in perspective, expertise, or experience?
This is not a reflection on the quality of individual board members, but on the completeness and appropriateness of the board as a whole.
How to proceed? And how to focus on the essential?
Now it is time for the action, this part can get tricky. First and foremost, the board should be steered to the point where it can bring about its own regeneration.
Old habits die hard.
It is a good idea to draw a plan to involve all members in the process of change - that way, they are more likely to feel ownership of the process and less likely to resist any changes that need to be made. The process of change can be slow or sudden, light or massive - the approach taken will depend on how dire the situation is and how much resistance is encountered.
Taking a more strategic approach to board recruitment, including putting in place a recruitment strategy and setting up a recruitment committee if one does not already exist. Making sure that the induction of new board members directs their attention to the real requirements of the role; there is no use having new members if they are simply co-opted by the old members to carry on in the old ways. Obviously, the approach to be taken and the regeneration methods to be used will depend on the type of change required and the particular culture of the organisation and its board. One may be tempted to take on these two assessments sequentially, but time is of the essence. Instead, look at the “who” and the “how” simultaneously.
By rotating board members, one can avoid a board that is
too homogeneous
too complacent,
or too entrenched in its ways.
At the same time, one can also enhance a board’s performance and impact by bringing in
new skills,
new perspectives
and new connections.
Finally, it is crucial to be clear and precise:
Does the board need to communicate better with community group members and other stakeholders?
Is there a need for new policies and/or procedures to provide greater guidance for the board?
Is there a need for better board-staff relations?
What has been the need for renewal on your board? And how did you take the action? We would like to hear your comments.
Text: Tomi Arppe
tomi.arppe(a)chief.fi | +358 45 127 4656
