IMHO: From potty mouths to polished boards: Why governance needs good manners

I’ve been reflecting on the idea that hurling insults might improve governance and feel it needs a response. 

Commentary from Hamilton councillor Andrew Bydder condoning profanities from external stakeholders, or otherwise, is unacceptable for a number of reasons.

Many would say there is a certain irony that I am the one picking up the acceptable language flag given much of my management career has been in ‘robust’ industries such as rugby, but language sets culture.

As the chief executive of the Institute of Directors in New Zealand (IoD), I want to address an important aspect of boardroom dynamics: the power of good communication and creating inclusive spaces for everyone to contribute – both board and management. 

Effective communication is the backbone of any successful board. It ensures everyone is on the same page, facilitates decision-making and helps build trust among board members. Good communication means clarity, transparency, active listening and respectful dialogue. 

Effective communication is also situational. There is no one “governance best practice” approach for how you should run your board. Boards should reflect the organisation, their industry, their strategy and the culture they want to create.

In closely held family-run businesses, in which investors can decide whether or not and how to invest their capital, by all means have a more relaxed approach to language and dialogue.

But with public entities we, the community members, can’t choose whether we want to have a relationship with that organisation. Nor can we just move elsewhere if we don’t like the person we’re dealing with. The expectations for public sector and local government governance are, rightly, higher. 

We should expect a high-level of professionalism and behaviour from those working on our behalf. Our elected governance representatives have a duty to represent all of us, and that means creating spaces and environments in which everyone is welcome, and everyone can participate. 

Respect in communication fosters a positive and productive atmosphere. It encourages open discussion, critical thinking and collaborative problem solving. Respectful dialogue also mitigates conflicts and ensures that disagreements are handled constructively. 

Swearing, or the use of inappropriate language in the boardroom, can undermine good communication. It can also damage the reputation of the board and the organisation it represents. 

The comments reported in the news to have been directed at people, including management, is unacceptable. For boards, and governance, to thrive we need a two-way relationship of trust and confidence in our high-performing, empowered and supported management teams.

Board members are expected to set an example for the entire organisation, and professionalism is key to maintaining credibility and respect.

If nothing else, this recent behaviour has caused a distraction from the issues at hand. Bad language can lead to bad blood – unnecessary conflicts and tensions, which can impede the board’s ability to function effectively and make sound decisions.

To foster good communication, boards should strive to create a culture of respect and professionalism. Here are some steps that can be taken:

• • Set clear expectations: Clearly define the expected standards of conduct for board meetings, including language and behaviour. This can be outlined in a code of conduct or governance charter.
  • Lead by example: Board chairs and senior members should model the behaviour they expect from others. This sets the tone for the rest of the board and reinforces the importance of professionalism.
  • Provide training: Offer training sessions on effective communication, conflict resolution and cultural sensitivity. This can help board members develop the skills they need to communicate respectfully and effectively.
  • Address issues promptly: If inappropriate language or behaviour occurs, address it immediately and constructively. This reinforces the board’s commitment to maintaining a professional and respectful environment.

At the IoD, we are committed to promoting the highest standards of governance, including good communication, in New Zealand boardrooms. Good communication is essential for effective governance and the success of any organisation. By prioritising clarity, transparency, active listening and respectful dialogue, boards can foster a productive and positive environment. 

If you feel you are not able to get your point across, follow Desmond Tutu’s advice: “Don’t raise your voice, improve your argument.”

+AI assisted with the drafting of this article