Getting the best out of senior leaders

Different boards work in different ways. While some may be actively involved in the co-creation of a strategy, others may endorse a plan developed by senior management. It is up to each organisation to develop its own cadence and tone to best execute its strategy. 

I have had the privilege of working with several boards, including as a chief executive of an ASX-listed company and in senior executive roles in Australia and New Zealand. So, how can board members work to motivate and inspire senior leaders? 

Boards should seek to support a management team in understanding, assessing and managing the opportunities and risks involved in executing the organisation’s strategy. 

As a senior executive, it is incredibly meaningful and motivating when a board pushes on an organisation’s vision or ambition. From a management perspective, this clears the way and encourages big, bold thinking to drive the organisation to the next level. 

There is an important care perspective that board members can add, driving the way an organisation prepares for, or responds to, a situation and ensuring the wellbeing of the CEO and senior leadership. 

Chief executives of large, publicly listed companies are, at any one time, dealing with multiple increasingly complex issues, so it is crucial they have a supportive relationship with their board chair, and they can talk through the tough challenges. 

Board members bring not just their skills and experience, but also their professional networks and connections to the role. A well-connected board member can help build an organisation’s reputation through their network and use those contacts to benefit the business by introducing new partners, advisors, alliances and customers. 

As the environment around us evolves, our organisations become more complex and our customer’s needs more distinct, so it is imperative a diversity of views are represented around the boardroom table.

The boards of today are not simply looking at financial management, there is risk and reputation management, technology, and environmental, social and governance (ESG) aspects that require a cross-section of skills and views. 

A diversity of age, gender and cultural backgrounds can ensure topics are dissected and debated from varying vantage points. Diversity can drive insight on emerging customer segments and technologies, and probe for a step change in thinking around traditional reward and recognition frameworks. 

Some of the most effective boards get out of the boardroom and close to not only their organisation’s customers but also, importantly, its people. A board can take the temperature by stepping away from head office and visiting regional offices or subsidiaries. Connecting with the team that is executing the strategy will be an important check on how it is filtering through and how the organisation is performing. 

The pace of technological change, the increasingly complex geopolitical environment and volatility driven by climate change demands different capability for boards and senior leaders. 

Strong operational capability is no longer enough to ensure success. Dynamic capability is now required. It requires a different cadence and routine, and an openness to consider a broader set of scenarios. More time needs to be spent sensing and discussing material shifts and the impact to business models, not just the smaller shocks. 

Through the businesses I speak to, I’ve observed two points when senior leaders should consider establishing a board. 

When a company is of a size and scale where, either through need or desire, it requires additional external capital, it is helpful to be able to demonstrate a certain level of independence through a board structure. Having good corporate governance in place can give lenders comfort and help speed up the delivery of capital, ultimately helping the business to grow. 

Another occasion when a board could be considered is when an organisation’s stakeholder set becomes larger and more complex. This is especially relevant for highly regulated industries, where board independence and oversight can be helpful in providing an additional layer of governance. 

New Zealand is a nation of small and medium-size enterprises, and not every business will have a board. For those organisations, there are many informal channels, such as industry groups and chambers of commerce, where leaders can tap into information and support. 

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