Board GEMs

Hmm, thought Marty, CEO. Once again the board meeting was transacted with ultimate efficiency and no discussion on the strategic issues she’d shared. The board members seemed content with her suggestions and would often defer to her for input. Sure, the organization was fairly stable and maybe that was the problem. As Jim Collins, celebrated business author, would guess: perhaps good had become the enemy of great.

Meanwhile, Terry was silently grumbling. Why am I here? he thought. It seemed that all the board did was make and approve motions. All the long term direction was, or seemed to be, delegated to the CEO and staff. What a ‘bore’.

When board members gather together a dozen times a year or less, the ‘interruptions’ of their day jobs can make for stilted board encounters. It takes individuals time and effort to get back into the flow of their board work and if there is not adequate pre-reading and mental preparation, board meetings can dissolve into a ticking and checking exercise rather than a debating and directing one.

What Can You Do?

1. At least annually, identify pertinent environmental shifts or issues to be tackled by the board. Even with one or two days of strategic planning annually, there are usually critical issues that can’t be fully explored during the retreat. Therefore, create a full year board agenda to ensure issues that need to be dealt with are spread out over future board meetings.
2. Set aside a meaningful amount of time to discuss the impact emerging trends will have in the future and what adjustments should be made to either leverage the opportunities they afford and/or manage the associated risks.
3. Design board agendas so as to focus discussion on the strategic decision points to be discussed. For example: Please come prepared to discuss the pros and cons of addressing the looming budget deficit a) through staff reductions or b) by accepting the invitation from Snowdens to merge for operational efficiencies. (Refer to the preliminary analysis attached.) Not only will issues identification in the agenda help board members mentally prepare, but the outcomes are likely to be more tangible.
4. Incorporate small group discussions into the board meeting. Challenge groups of two or three board members to discuss either the pros or cons of alternatives to deal with an issue. Not only will this get everyone involved, but chances are high that more information and debate will lead to a better decision.
5. Board chairs can increase the level of engagement by mining for conflict. Ask “what is the downside of going ahead with this,” or “what are we missing?” And if the tension mounts, reassure directors that it is good to hear a variety of viewpoints on the way to the best solution. Encourage them not to take offense if others don’t embrace their ideas – it is still good to get them on the table for consideration.