By Johnson Manyakara

This is the first in a series of blog posts exploring answers to this strategic question in Board Leadership – What should keep Board members awake at night?  Progressive Board members have a number of issues that should keep them awake at night, starting with Board Leadership.

But what is Board Leadership?  Barbara Miller defines Board Leadership as-

“…board actions that have served to move organisations forward so that they can successfully meet these challenges:

• Mobilise action to further the mission;

• Help the organisation adapt to changing circumstances;

• Respond to crises;

• Identify opportunities for change and growth, and/or
• Create future leaders.”

In a way, planning for these actions should keep Board members awake at night.

Key Role

Boards and Directors have a key role in providing the leadership and accountability that determine the long term success of an organisation, accountable to shareholders. Effectiveness in this role depends, to a large measure, on the capacity of Boards not only to build effective Boards and Board members but also to run Boards following good corporate governance practices.

Pulling organisations out of the current economic quagmire in Zimbabwe, for example, requires robust boards that-

• Provide the leadership and accountability, ingredients that determine organisations’ turnaround and long term success; and
• Balance between looking into the rear view mirror of the organisation and scanning the road ahead.

Leadership Challenges for Board Members

Challenges requiring action from Board Members include-

• Corruption in its various shapes and forms;
• Failure to attract quality investors, both local and FDIs;
• Poor risk management; and
• Poor Board and Director oversight.

These challenges, more often than not, result in severe losses in organisations. In State Enterprises and Parastatals in Zimbabwe, for example, non-compliance with the provisions of the Public Entities Corporate Governance Act attracts severe sanctions for Boards and Senior Management.

Effective Board Leadership, Better Business

Some areas of strategic focus for Boards and Board Members are detailed below.

• Board Leadership Surveys/Assessment of Board Leadership Practices

Having high-impact board leadership is every investor’s dream! High impact not only in the entity’s governance compliance matters but also in the entity’s ability to deliver against its mandate, whether the mandate is financial success of the entity and/or success in the provision of basic services such as water and sanitation, electricity, telecommunications, transportation, health and education.

Insisting Board Leadership Surveys/Assessment of Board Leadership Practices-some form of stock taking to provide a baseline for continuous improvement in the governance of the entity, should keep Board members awake at night.

• Change Management

“When the rate of change outside exceeds the rate of change inside, the end is in sight “ –Jack Welch

Change Management should keep Board members awake at night! Many entities have gone into extinction globally but also in Southern Africa precisely because they have failed to introduce needed change fast enough and, where they have done so, they failed to manage the change well.

• Enterprise Risk Management

In this VUCA world, organisations face difficult challenges in responding to rapidly changing and globally pervasive risks. The need to develop, implement and maintain efficient and effective risk management programmes can, therefore, not be emphasised.

The terrain for board leadership is bumpy! Sleeping on duty by Board Members is, therefore, just not an option.