Identity, Power and Influence in the Boardroom: Actionable Strategies for Developing High Impact Directors and Boards

Cover
Half Title
Title Page
Copyright Page
Contents
List of figures
List of tables
About the author
Acknowledgements
List of abbreviations
Introduction
PART I
1 The board’s role and accountability in developing and deciding strategy: the theory and reality
This chapter in summary
The role of the board—theory and practice
Board contribution to strategy: the theory and the reality
The decision context and opportunities to influence and shape strategy
Stage 1: judging strategic fit
Stage 2: judging the opportunity to shape strategy
Stage 3: participating in decision deliberations
Stage 4: reaching a consensus
Accountability as a goal and a process
Formal and informal forms of accountability
Board accountability, power and influence
In conclusion
Actionable strategies
2 Board capital: the source of director influence, perceived relevance and legitimacy to influence
This chapter in summary
Origins of and differentials in power between NEDs
Cognitive diversity
Requisite variety: NED human capital
External variety: NED social capital
Perceived legitimacy of one’s cognitive history
Past associations and personal ties
Common cognitive histories
Shared values and implicit beliefs
Director motivations: ‘why I joined’ and how it shapes the process of accountability
Opportunity to add value
Opportunity to belong to a successful company, challenging business and vital sector
Opportunity to join a respected board
The opportunity to work with great people and great culture
In conclusion
Letter to the nominations committee
Actionable strategies
3 The boardroom: decoding the hidden hierarchy and board culture
This chapter in summary
The consequences of group identification: receiving and granting of social support
Seeking social support from others for NED influence attempts
Granting or withholding social support for others’ influence attempts
Pe rceptions of competence and professional credibility of an influencer
Sh ared view about the work of the board and the role in strategy
Diversity of cognitive communities of influence
How the character and culture of a board emerges and thrives
High-performing board
Factional board
Consensual board
Fractured/dysfunctional board
Transactional board
Group effects: the big bad five
In conclusion
Actionable strategies
4 Essential NED skills for strengthening strategic influence
This chapter in summary
Behavioural variations in NED use of board capital for influence
Relational themes
Theme 1: how influence was gained through questioning and contention
Theme 2: how influence was shared through feedback, learning and adaptation
Theme 3: how influence was asserted through skilled articulation of relevance and expertise
Theme 4: how influence was supported through the challenge process
Dispositional themes
Theme 1: acting and reflecting during discourse with others
Theme 2: practising detachment and distance while involved
Theme 3: conceding to and resisting social pressure from the influence attempts of others
Framework of social competence required for director effectiveness
In conclusion
Actionable strategies
Letter to the nominations committee
5 Rethinking the leadership of the board
This chapter in summary
Leadership and its social context
What leadership can the chair expect from members of the board group?
First, effective engagement
Second, equal participation
Third, mutual respect
Fourth, collective support
Fifth, no surprises
Sixth, external relations
The role of the chair in unlocking collective capability and performance
Deep knowledge of and insight into member talents
Ability to spot, coach and moderate director influencing personas and styles of NEDs
Impartial and faithful representation of views
Well-timed judgement calls
Reflective observation
Effective process management
Creating tactical interventions
Nurturing psychological safety
Tactics and techniques to strengthen board leadership as a shared practice
Chair strategies and tactics
NED strategies and tactics
Process changes
In conclusion
PART II
6 Developing a strategically active board
This chapter in summary
Incumbency and the case for change
The curse of legacy thinking and conservatism
NED exposure to disruptive forces and diverse thinking
From the dance floor to the balcony
Monitoring and adapting strategy
Preparing for the future: some tools
Developing strategic clarity
Defining strategic effectiveness
Behaviours: distinguishing strategically effective boards from ineffective ones
In conclusion
7 The BoardQ approach to board effectiveness, development and renewal
This chapter in summary
Stage 1: discovery phase
Stage 2: co-creating the board aspiration and building ownership for change
Stage 3: strengthening board effectiveness
Step A: process effectiveness: composition, structure and workings (using an online tool)
Step B: peer feedback on quality of board life (face to face meetings)
Stage 4: determining a ‘fit for future’ board composition and succession and renewal plan
In conclusion
8 What we expect from boards as investors
This chapter in summary
The growth of activism and rise of activists
Not all shareholder activism is hostile
The rise of societal disquiet and the social licence
Boards and investor engagement
Letter to the board
In conclusion
9 The future of governance and the ‘fit for future’ board
This chapter in summary
The unstoppable winds of change in corporate governance
The 2030 board
Achieving a healthy corporate culture
Steps boards can take to strengthen corporate culture
Reframing the guiding purpose and retaining the social licence
Steps boards can take to strengthen their guiding purpose
A focus on all forms of diversity
German model
Swedish model
Steps boards can take to strengthen diversity
Responding to the digital economy
Steps boards can take to lead the digitisation of their businesses, products and services
Existential risk, sustainability and scenario planning
In conclusion
Index