By Johnson Manyakara

Strictly Compliance Route

Spare a thought for company corpses that have littered the business landscape in Zimbabwe and globally because their boards elected the Strictly Compliance Route, with little attention to the road ahead, almost to the point of obsession.

Typically, organisations that traverse this route adopt a traditional board agenda, informed by Exhibit 1 below.

Exhibit 1

[Adapted from “Building a forward –looking board, “ McKinsey Quarterly, February 2014]

“There are times when CEOs are the last ones to see changes coming,” commented the Chairman of a leading energy company quoted in “Building a forward – looking board”, McKinsey Quarterly, February 2014.

Boards and Directors shoulder the key role in providing the leadership for bringing the much – needed balance that ensures necessary changes in the business operating environment affecting the enterprise are detected early enough with the necessary changes in strategy effected in time.

Compliance + Route

Arguably, boards that follow the Compliance + philosophy steer their organisations towards financial success and/or success in the provision of services such as water, electricity, telecommunications, transportation, health and education.  Their board agendas, typically, is a hybrid of agenda items informed by Exhibit 1 (i.e. the traditional board agenda) with additional forward-looking activities informed by Exhibit 11 below.

 Exhibit 11

[Adapted from “Building a forward – looking board,” McKinsey Quarterly, February 2014]

Again, Boards and Directors have the responsibility of bringing balance between these two philosophies.

Conclusion

Boards, take your pick and be prepared to “lie on your bed.”