A Maximising Mindset

Reflecting on things while traveling can be stimulating and so it proved in the beautiful hills near Maseru, Lesotho recently. The reason for my visit was to contribute to an Institute of Directors Lesotho event on governance, for which big thanks to their Chair, Selebalo Ntepe. ?

The theme of my tiny contribution was “Value Maximising Boards”. Why?? Because even though there is a lot to think about in terms of risk in the world right now, it is important that we also remember that there is a lot more to being on a board or being a leader than minimising risk. Whether we are in business, the social or public sectors, minimising risk will help us stay in the game. Yet it is rarely enough to win it or, should we wish to, to achieve our full potential either individually or collectively.

Unless we are incredibly lucky it’s usually necessary to be well governed to achieve sustained success. Good governance contributes to creating value and impact in so many ways in addition to reducing risk. For example, in making more robust decisions with increasing efficiency and through building stronger reputations. Yet it is not sufficient.

We need a clear vision and purpose which mobilises and guides teams in the right direction. Ensuring that we have the right strategy and the right resources as well as right governance to achieve our vision and fulfill our purpose. That’s why, in a recent report conducted by SAP Concur , it was found that 60% of senior leaders said their main task today was preparing their business for the unexpected. As a board or a leader we need to make sure we’re adding value and providing more than just effective oversight to maximise a businesses potential.?

Although very familiar with South Africa, which surrounds it, I knew very little about land locked Lesotho before my trip. Hence, I felt the need to research its history, culture and state of governance. In doing so I learnt a lot about the person whom Lesotho’s corporate governance code is named after. I was expecting them to be a prominent and well-connected business leader, a Lesotho Cadbury or Higgs. Wrong!

The code is named after a 17th Century Basotho chief, herbalist and philosopher, Chief Mohlomi. He travelled around Southern Africa teaching and practicing a leadership philosophy based upon peace and prosperity with the aim of developing transformative leaders. He was also a social entrepreneur ploughing back what he earnt into the communities he visited.

Far-sighted Mohlomi believed in intergenerational thinking, something which we today, with much threatened futures, are rediscovering. ?This for him was not just about doing no harm but about positively building for the future and making the world a better place for those from all generations, now and to follow.

Unlike many of the local warmongering chiefs of his time, he saw the huge benefits of identity and independence in unifying and galvanising people behind a positive vision which has real meaning for them not just the leaders. Yet he also saw the realities of interdependence, recognised the value of a stable context within and around a community, as well as the benefits that flow from thinking of others affected by our actions.

Mohlomi, certainly seems to have been one of life’s inspirational maximisers. Maximising value and impact, not just for today but for the future and not just for himself or his tribe but for others now as well as those to come. ??

As a board, or a leader more generally, how can we turn these centuries old inspirational maximising principles into practice in our much-changed world. ?Here’s six simple thoughts to prompt thought and discussion:

• First of all, it’s helpful to understand that a minimising mindset can easily become a reductive mindset, ?even if arrived at through traveling along a path of good intentions. It may then provide insufficient protection against the things we fear as well as reduce our ambition and weaken our talent magnet. Whereas maximising potential can strengthen resilience through providing greater individual and collective strength, resources, relationships, empathy and access.
• At the same time we need to recognise reality, that we can’t run completely free and that a degree of minimising is necessary. For example in use of resources and in helping us to focus. ?So, when composing our boards and leadership teams and in thinking about diversity we need a healthy balance of risk appetites. Those who can inspire us to think big and those who can ensure that we maintain financial and operational control, as well as that rare earth material, those who can do both.
• We need sharp focus, high motivation and strong alignment. We need clarity about what we mean by value or impact- whether Financial & Commercial, Social, Personal or Intergenerational, whether short- or long- term, We also need to be clear about who that value or impact is being created for and how we are going to measure it and distribute it.
• Having an integrated stakeholder strategy helps; in framing our choices and guiding our investment, in maximising the use of our capital, our knowledge, and human and natural resources. The word integrated being critical. Knowing what all of our key stakeholders want and need from us and as importantly what we want and need from them. Then having the metrics in place to know to what extent we are all getting what we want and need will enable us to maximise whatever resources we have.
• As does having intergenerational mindset. It helps in so many ways, from reinforcing long term sustainable decision-making to the creativity and fresh insights and challenges that Nextgen boards bring. In a new book which Rebecca Robins and I have co-authored Five Generations at Work: How We Win Together, For Good (click to find out more and pre-order) we take a fresh, evidence based and solutions focused approach to the topic. ?Bypassing the current divisive negative and stereotype-fueled discourse, we have drawn upon six years of research and case studies from leading businesses and other types of organisation, to produce a definitive playbook for empowering intergenerational collaboration, innovation and productivity at work.
• Moving away from over transactional mindsets when it comes to recruiting, developing and maximizing the value of our people also helps. Current unsustainable churn rates, talent scarcities, low engagement and the consequences of precarious employment are not good for business or any other type of organisation. I believe they have also been harmful the wellbeing of our societies. ?
• Finally, whilst acknowledging that “Do no harm” has been helpful in many ways, it is staggeringly unambitious whether in the context of our planet, our organisations, those we interact with, our communities or future generations. There is enormous opportunity through creating wealth, health and making our planet an even more wonderful place to live.

All of the above are dependent upon one other thought. That it is hard to have a value or impact maximising board or leadership team without people with maximising mindsets. That’s why it’s something we should always look for when recruiting and help to develop in those we work with.

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Patrick Dunne?OBE

Experienced Chair and author of the award-winning book Boards .

This article has been sponsored by SAP Concur industry-leading technology that automates travel, expense and invoice spend processes. The fee will be donated to EY Foundation an independent charity which supporting young people from low-income backgrounds to maximise their potential through getting paid work experience, employability skills training and career guidance.