Building a High Performing Board: Navigating Challenges and Embracing the Digital Future

Let's face it, running a company is like navigating a high-speed rollercoaster in a constant state of unpredictable twists and turns.

And if you're the CEO or a part of the leadership team, you need a rock-solid board of directors to keep you on track.??

But here's the catch:? Building a high-performing board isn't a one-size-fits-all deal.

It's more like a custom-designed suit, tailored to your company's unique needs and the challenges you face.

Over the years, I've worked with countless companies, and I've seen firsthand how a board can either be a source of strength or a bottleneck to progress.?

One of the biggest challenges I see is the "silo effect."?

We've all been there – the board meeting where each director sits in their own little bubble, focused only on their specific area of expertise.

This lack of cross-collaboration can lead to a disconnect between the board and the company's overall direction.??

Another challenge is keeping up with the rapid pace of digital disruption.

The way businesses operate is changing, and boards need to be dynamic enough to adapt.

It's not just about understanding technology; it's about embracing the opportunities it presents.??

Here's a real-life example:? I worked with a manufacturing company that was stuck in its old ways.

The board was hesitant to invest in digital transformation,? seeing it as a risky gamble.?

The CEO was frustrated, seeing opportunities for innovation that the board wasn't grasping.

We implemented a series of workshops and brought in experts to help the board understand the possibilities.?

The result?? A complete shift in mindset. The board embraced digital transformation, and the company now boasts a cutting-edge manufacturing process, a more efficient supply chain, and increased profitability.?

So, how do you build a board that thrives in this dynamic landscape??

Here are some key ingredients:?

1. Catalyst for Change:? Look for directors who are not only experienced but also passionate about driving positive change.

They should be curious, eager to learn, and always seeking new ways to enhance your company's performance.??

2. Co-creation Is Key:? Forget those one-sided board meetings where executives present and directors nod.?

Embrace co-creation, where everyone actively participates in shaping the company's future.?

Imagine workshops where board members collaborate on the strategic plan, engaging in deep discussions, and pushing each other's thinking.??

3.? Evolving Capabilities:? The board needs to be a reflection of the company's changing needs.?

This means evaluating skills and expertise regularly and ensuring that the board has the right combination of knowledge and experience to address current and future challenges.??

4.? Emotional Intelligence: The Key to Growth:?

Don't underestimate the power of emotional intelligence (EQ).?

A board with high EQ can navigate difficult conversations, empathise with stakeholders, and build a culture of collaboration and trust.?

Companies with emotionally intelligent leaders and boards experience greater success and faster growth in all areas.?

5.? Culture Audit: A Must-Have:? A company's culture is a critical ingredient in its success.?

An objective culture audit can identify strengths and areas for improvement. This gives the board valuable insights into the company's internal environment and how it might be impacting performance.??

6.? The New Face of Governance: Wealth Governance:? Traditional corporate governance is shifting towards wealth governance.

This focuses on creating long-term value for all stakeholders, including employees, customers, and the community. It's about being accountable not just to shareholders but to all who are impacted by the company's decisions.?

Now, let's brainstorm some new ideas to boost your board's effectiveness.??

Step 1:? The Brainstorming Blitz:? Dedicate a specific time for the board to brainstorm, unfiltered and unedited.?

Encourage wild ideas, no matter how outlandish they may seem.? This creative process can spark fresh thinking and unconventional solutions.?

Step 2:? The Digital Deep Dive:? Host a "digital deep dive" session, where experts guide the board through the latest technology trends and their potential impact on the company.?

This can be a hands-on experience, with demonstrations of innovative tools and platforms.??

Step 3:? The "What If" Game:? Challenge the board to think beyond the present.?

"What if" scenarios can force them to consider potential disruptions, opportunities, and threats, helping them prepare for the unexpected.??

Step 4:? The "Outside-In" Perspective:? Invite external stakeholders, like customers, investors, and industry experts, to engage with the board.?

This "outside-in" perspective can provide valuable insights and fresh ideas.??

Building a high-performing board is an ongoing process.? It's about constant improvement, collaboration, and adaptability.??

A board that embraces these principles is not just a governance body; it's a force for innovation and growth, propelling your company towards a brighter future.

Until next time,

Vijay Mistri

P.S. Want to unlock the power of emotional intelligence and a growth mindset to drive business success? Join Rebecca Jenkins and me for this free live event.