The value proposition of modern boards

Boosting board effectiveness was the focus at the 2024 IoD Leadership Conference in Christchurch, where leading directors shared practical strategies to enhance governance and organisational value. Chaired by Ross Buckley CMInstD, the session featured panellists Bruce Hassall CMInstD, Dean Hamilton CMInstD and Anne Urlwin CFInstD.

Board’s strategic involvement

The panel began by discussing how boards can add governance value to their organisations. It was widely acknowledged that boards must now take a more proactive role in strategy formulation. “The days of management putting up the strategy for the board to sign off are gone," said Bruce Hassall. Boards must dive deep into strategy formulation, ensuring it’s both ambitious and achievable. Central to this is appointing the right chief executive for driving the strategy forward, a decision Hassall emphasised as perhaps the most significant a board can make.

Fostering trust and ensuring accountability

Building trust and holding management accountable were highlighted as critical components of a board’s role. The panel emphasised the importance of setting clear expectations and regularly reviewing performance to ensure the management team is accountable for delivering the strategy. This accountability must be balanced with trust and open communication. 

Regular check-ins and timely debriefs were highlighted as essential practices to discuss issues constructively and move forward.

The manner in which questions are asked is crucial, because questions implying deception can create distrust and lead to management filtering information, increasing the organisation’s risk profile. "How you ask a question on a board is as important as what you’re actually asking,” noted Hassall.

The relationship between the chair and the chief executive was particularly emphasised. It should be professional, with a clear boundary to maintain objectivity. Anne Urlwin said, "One of the hallmarks of dysfunctionality can be a very poor relationship between your chair and your chief executive."

Shaping culture and connecting with stakeholders

The board’s role in shaping organisational culture and stakeholder engagement was another key discussion point. Boards must set the tone at the top, fostering an environment of respect and collaboration. They should ensure the organisational culture supports the strategic goals and addresses any emerging risks.

Interaction with stakeholders is also fundamental. For large organisations, the stakeholder group can be very broad, including government, shareholders, customers and the community. Boards need to understand and engage with these stakeholders to ensure the organisation is meeting their expectations and addressing their concerns.

Crafting a high-performing board

Who sits around the board table matters immensely. "You need diversity of thought, perspectives, business experience and life experience," stressed Urlwin. This diversity enriches decision-making processes, though it can sometimes challenge collegiality. In addition to diverse backgrounds, modern boards must possess a broad array of literacies, including financial, health and safety, cyber security, climate change and AI. 

This wide-ranging expertise is essential for dealing with the complex issues that modern organisations face.

Hassall emphasised the importance of courage in board members: "You need board members who have courage and can be brave when needed. They should not be afraid to ask the hard questions and make tough decisions.”

Building relationships among board members is also vital. Opportunities such as board dinners or informal discussions help create a more cohesive and effective board. Through these interactions, board members can better understand each other and work together more effectively.

Additionally, ensuring a balance of voices within the boardroom is essential. Encouraging every member to share their views and preventing dominant personalities from overshadowing others contributes to a more balanced and effective board.

Continuous board improvement

Lastly, continuous improvement is essential for any high-performing board. Urlwin advocated for regular board evaluations, both formal and informal, to ensure ongoing development and effectiveness.

Feedback from the chief executive, legal counsel, CFO and key stakeholders is also valuable in this process. The willingness of the board to engage in these evaluations and hold itself accountable for implementing necessary changes is crucial for sustained success.

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Want to hear more and get insights like these? Registrations are now open for the IoD 2025 Annual Leadership Conference 11-12 September 2025:  Register now!

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