The impact of board leadership mindset on organisations

SHELDON SHIWEDHA SUBEB There has been growing tension surrounding the recycling of board members at different government institutions. It may not only be a real concern regarding fairness but in the current volatile and uncertain times, the approach employed by most board leadership may not entirely be sufficient to weather the multiple waves of disruption coming their way.The fundamental role of the board of directors is to be a directive mind of the organisation's short-term and long-term goals, as wells as to put structures in place to monitor progress against set objectives. With the advent of technology, the ever-changing global business environment, and the responsiveness required during disruption, this role is fast changing. As a result, skilled board leaders will be accustomed to multiple change principles in varying contexts. Three kinds of organisationsWhen it comes to organisational change in uncertain times, there are three kinds of organisations: Unstable – Stable – Post-stable. Unstable organisations are similar to start-ups. It is characterised by a lack of or non-compliance with policies, procedures, or structures. The organisational mission and vision are continually shifting, and a general inconsistency to culture, leadership, and the business model are apparent. The role of the board in these kinds of organisations is to create stability by normalising and streamlining organisation-wide operations. The goal is to establish efficiencies that will ensure sustainability quickly. There is a definite whole system agreement that there is a quick change required and, while some organisations transition well, some don't and will eventually cease to exist.Stable organisations, on the other hand, are characterised by predictability, efficiency, control, command, and status quo maintenance. These organisations have well-defined procedures and processes with a prescribed shared vision, mission, and strategic plan. The board's role in these organisations is characterised by total oversight of organisational conformance and performance, being conservative and risk-averse. More often than not, they are focused on the fiscal health of the organisation and less with breakthrough thinking. This organisational mindset is crucial and necessary but is insufficient in a world of unpredictable, complex change.Then you find what I call a ‘post-stable’ organisation change mindset. The type of organisation mindset that understands the disruptive nature of the current business ecosystem and realises the need to innovate and reinvent their business model continually. They are characterised by staying ahead of trends by operating quickly and proactively when faced by disruption. The board's role here is to create a culture of open discussion, constructive challenge, and constant mindfulness.Instead of maintaining the status quo, the board of directors remains fit for purpose and develops a culture that supports continuous change as a deliberate buffer for future disruption. A strong focus on resiliency and adaptability extends these kinds of organisations’ responsiveness to disruptive situations; differentiating between profit growing organisations and "also-ran" organisations. Board directors in this mindset do not lead organisations to survive and to meet their objectives; they lead organisations to thrive and trailblaze.Locked inVery few SOEs, in my opinion, are in this post-stable mindset, which makes me question the mentality in which their boards are operating. Are they trying to stabilise further an organisation that seems to be already stable? There is no value in perpetuating stability in an already stable organisation; all you become as a board is a needed nuisance. Stability in and of itself is not a bad thing; it is in the context of its application because stabilising is just a prolonged form of change. In a disruptive context, this restrained change mindset is not realistic, given the pace at which the business world is changing. What you need is a post-stable-minded group of people that will help the organisation transcend the current way of doing things.Many boards are locked in a stable mindset in part because of their composition. Research at both the executive and board levels has shown that companies with diverse teams outperform peers on various metrics. Although the diversity spectrum is broad most board recruitment requirements in Namibia, focus on experiential and gender diversity. Boards are hired on an individual competency basis; thus, the board can consist of highly "accomplished" individuals who are collectively useless—a classic case of team misfit. Board recruiters must understand that diversity is a strategic imperative, not only a compliance issue. The journey toward governance excellence in disruptive business environments is paved by divergence and convergence thinking; before deciding on a direction, boards must quickly understand information from multiple perspectives, not multiple people with the same mindset.

The impact of board leadership mindset on organisations

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Namibian Sun 2024-11-25

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The impact of board leadership mindset on organisations

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Namibian Sun 2024-11-25

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