The scrutiny placed on Boards and Trustees is increasing. This comes from a range of audiences but politicians and the media in particular are looking more closely than ever. What does this scrutiny mean for the way Boards and Trustees should behave?
It was not that long ago that few people knew the names of the board members, including non-executive directors, or the trustees of any organisation. Chairs and Chief Executives may have enjoyed a greater profile, but few others seemed to count.
That has changed. There is an increased realisation that these ‘others’ actually have a fundamental role in running their respective organisations, shaping their policies, behaviours and strategic decisions.
There are, of course, legal requirements around appointments as well as specific responsibilities for those holding these senior positions. But, I would contend, that there are also wider reputation considerations as well.
- Specialisms – rather than just relying on the traditional professional services skills, a broader approach needs to be adopted. That means taking communications seriously but also other disciplines and viewpoints as well. For instance, whilst is important to have someone with an HR background, those that bring insight related to diversity matters, or those affecting young people and older people, may not come from a traditional HR background. The Board should not close itself off from these wider views that could be available to them.
- Diversity – the release of the Davies Review on Women on Boards was a welcome contribution to the debate and there is no doubt that a lot of progress has been made. Just not enough. Government, in particular, has come under pressure to do something about redressing the balance. Whether a solely voluntary approach will be enough remains to be seen.
- Experience – whilst experience is necessary, there has been an over reliance on similar types of experience. This is a different issue from diversity or specialism because even here they could all have been from, for instance, the same sector or may have dealt with the same issues. Certain sectors like to recruit from within and whilst that can deliver expertise it can limit the amount of varied experience.
- Know your requirements – it is also essential that anyone joining a Board or as a Trustee knows what is expected of them. There are legal requirements but also cultural ones as well. You may have joined to play a particular role or cover a certain discipline, in which case this should be communicated. The organisation being joined should have a clear process in place to educate, communicate and train such new joiners. So both new member and organisation should take some ownership.
- Be prepared to be challenged and challenge – the nature of the Board should be one that allows for open and frank discussions and plurality in decision-making. In other words, the atmosphere needs to be right. If it isn’t then the danger exists that decisions will be railroaded through, that discussions will be limited, the loudest voices will dominate or that the preferences of the senior leadership are merely endorsed. But each individual member also needs to be aware that they can be challenged and need to react in the right way as well.
If Boards and Trustees do not reflect these ways of working then there is a real danger of reputational damage for the organisation and the individuals themselves as well. Politicians will intervene and the media will ‘name and shame’ as well.
Steps can be put in place but the need for change has to be recognised in the first place.