By Johnson Manyakara

Many boards do a good job in terms of the appointment process of new Board members-identification, terms, reference checks, solvency checks, etc. However, most Boards don’t pay due regard to the all-important area of Board and Director Development, an area which helps optimise Board effectiveness quicker thereby drive an organisation’s success.

Effective Organisations

The most effective organisations invest in Board and Director Development in terms of continual learning and development. Amongst the strategic reasons for continual learning in the boardroom are the following:

• Board members are reminded of their role and responsibilities;
• The process helps build cohesive teams;
• Helps keep organisations safe and legal;
• Ensures Board members are using “reasonable care, skill and diligence” in the execution of their mandate;
• Helps motivate and retain good board members; and
• Helps increase innovation and improve overall Board performance.

The Process Begins Here

Best practice requires that new Boards and Board members are provided with support and information to assist them in discharging their governance responsibilities. Board Induction focuses on this. It is inefficient and unproductive for a Board to leave Board members to find their feet through trial and error. All new Boards and Board members should receive an introduction to the workings of an organisation, their role and responsibilities as well as the organisation’s administrative arrangements.

Other Board and Director Development Strategies

Amongst other Board and Director Development strategies include the following:

• Board Team Building;
• Attendance at Board Annual Conferences;
• Attending Trade Fairs/Customer Conferences;
• Trade Route Rides/Customer Visits;
• Visiting R & D facilities;
• Visiting New Plants/Sites
• Governance Training and Refreshers; and
• Board Leadership Breakfast Seminars.

Drink From Good Sources

Amongst other things, King IV provides for Board and Director Development being put front and centre in Board Leadership. In Zimbabwe, for example, the Public Entities Corporate Governance Act 2018 provides for the following:

• All Board members to receive a full induction covering all aspects of the entity on appointment;
• Board members to receive corporate governance training on appointment;
• Board members’ additional training needs are to be defined; and
• Board members are to attend suitable training.

Board and Director Development is Expensive

Cost management is always given as a reason why investing in boardroom continual learning and development should not happen. Who can blame organisations for taking this stance, particularly in Zimbabwe where the informal market USD to RTGS (Real Time Gross Settlement) FCA rate is going through the roof?

Peter Drucker’s counsel is worth keeping in mind though.

“If you think training is expensive, try ignorance.”