Switching on the power in the boardroom
A seat at the boardroom table is the career goal of most ambitious managers. But how do you respond to the challenges of joining the top team? Becoming a custodian of the company's future success and its corporate values requires a very different approach from leading a department or function.
A senior executive with some valuable insight into this transition is Alison Clarke, HR director at leading FTSE 100 player United Utilities Group PLC. The UK's largest listed water company, United Utilities owns, operates and maintains utility assets, including water, wastewater, electricity and gas. It has a turnover of £2.3 billion and 8,000 direct employees.
"Generating powerful conversations in the boardroom is partly due to the chemistry between the personalities around the table," says Alison. "Talented people get to the top by being strong managers, delivering good results with their teams, and establishing an effective, accountable leadership style. However, it's often a challenge to adjust this style to focus on the greater corporate good rather than purely divisional performance. The loyalties, incentives and drivers for the executive team are different from those of operational colleagues, and require different behaviour.
"This is where the skills of the chief executive and chairman come into play in setting the tone of board meetings. An environment based on honesty and openness encourages all the directors to feel confident about saying what they really think. A good chairman will fine-tune this process, controlling the debate so that it does not spill over into criticism or fruitless discussion, encouraging participation and deciding which issues need to be taken outside the meeting to achieve results."
With senior HR roles at Hilton, Whitbread Restaurants and global retailer AS Watson in her portfolio, Alison has seen the value of getting the boardroom mix right. "Non-executive directors can be a boon or a bane. The best people remain objective, assimilate ideas and issues quickly and apply their expertise to making value judgments for the greater good of the business.
"Gender dynamics can also help to generate effective discussion in board meetings. Women often bring balance and the logical application of experience to situations. If a board has a number of alpha males competing for power or influence, reducing the testosterone level is no bad thing!"
Whether a new recruit to the board is male or female, Alison believes they will benefit significantly from a formal programme of development and mentoring. This could be provided by a mentor within the business or an external coach who acts as a friendly observer and provides independent feedback on the new director's performance at board meetings.
"Entering the boardroom for the first time is quite daunting. You quickly need to learn a new set of rules, and have to leave your functional hat outside the door. There is no automatic powerbase from which to operate, and expectations of you will be high.
"A mentor can help you interpret the body language around the table, identify any power axes or alliances within the board and define your own contribution to the board's activities. People have different approaches to thinking and communication, and not jumping into the debate immediately does not indicate a director has no opinion. 'Breakthrough thinkers' are a valuable asset to any board. They stand back, listen to the discussion and create a thinking space in which they can really focus on the key issue and its consequences."
Another significant lesson for any director is to prepare their case well, or risk losing credibility with colleagues. "You need to be clear about why you are bringing a particular matter to the board, and what its impact will be. Focus on putting the strategic element on the boardroom table, leave the tactical and operational details outside."
However experienced and cohesive a board may be, in Alison's experience taking time out as a group can deliver useful insights. "It's good practice to review the board's performance and behaviour, to confirm what they need to do and be, as a group as well on an individual basis. 360 degree feedback from colleagues across the business as well as peers can pick up common themes, and perhaps identify any potential problems or skills gaps within the board.
"Especially in the current climate, boards need to function as a team and devote all their energies to dealing with issues and concerns affecting the future of the business. Creating an environment in which powerful conversations lead to effective strategic thinking and operational decision-making is the hallmark of strong leadership."
Winter 2008
| Back to Articles |
