The role of a board
What is a board? The board of an organisation is the vehicle that provides oversight, guidance and advice but does not get involved in daily operations. In most cases, the board of directors also represents something or someone – e.g., shareholders. While the concept of a board or board of directors is familiar to many, it is often misunderstood. These misconceptions can leave people unprepared, unclear about their roles and responsibilities, or caught in unexpected conflicts.
In this article, I will explore the intricacies of the boardroom and delve into key aspects of boardroom dynamics.
Power & Politics
It is important to understand the meaning of power and the different levels of power. Power can come with role and authority but also with knowledge and position. However, having power doesn’t necessarily equate to having influence.
In this context, we’re talking about politics, where influence is the central process. It’s possible to influence through, for instance, strategies and agendas, demonstrating that one can wield influence even without formal power.
In politics, it’s rarely about right or wrong, black or white—it’s about the winning argument and navigating the many shades of grey. If asked for advice on politics, I’d sum it up in three words: “Watch your back!” Politics isn’t for the faint-hearted or those who take things personally—it’s simply business.
This is also why entering the boardroom or engaging in politics is for those who can distance themselves from the subject, remain calm and strategically construct a response – not a reaction.
This environment might sound off-putting to some, but it is the reality. However, it is a fascinating and rewarding realm if one learns to manoeuvre oneself and keep a pragmatic mindset, where one can influence organisations, markets, policies and regulations for instance, while driving organisational culture and performance.
Nevertheless, some individuals might not be on a board for the most obvious reasons. Around the board table, hidden agendas often exist, and for some, the appeal lies not in the organisation itself, but in the power and opportunities that come with having a seat at the table. It’s the doors that open through this position that hold the real interest. Some people might be on a specific board because it allows them to influence industry policies, as a result of being invited to sit on other committees – following a board nomination.
Consequently, in the boardroom, both power and political sharpness are of invaluable importance, enabling direction, guidance, control and influence.
Not a team
A board is not a team, and they should not act like one. A board is more like a representative body, directing the organisation. Board members most often represent someone or something, like shareholders or member organisations, with different agendas, focus and strategies.
Therefore, it’s more about advocacy, offering the right challenges, maintaining a critical mindset, and asking the right questions. One must avoid what I call the “dodo mentality,” where everyone blindly follows the same path, only to realise too late that they’ve gone over the edge. This is often what happens when the board’s role is misunderstood, or people on the board do not understand the role of a board of directors.
Consequently, having a solid governance structure with clear processes following best practices is crucial. It is also important that each member of the board understands their role and responsibilities and has a clear comprehension of their level of discretion and what is expected of them. Without this, the organisations will, at best, be climbing a tree butt first!
The competitive advantage
Of course, there are different types of boards—corporate, associations, for-profit, and non-profit. However, I would argue the premise remains the same. Whether representing shareholders, investors, organisations, or member demographics, boards must advocate and challenge to drive progress, while ensuring a solid foundation, managing performance, and driving desired outcomes.
Otherwise, one would lose the edge and competitive advantage. Hence, having a good board with the right constellation of board members, capabilities and knowledge is crucial to success.
Not acting as a team, in this context, is a competitive advantage.
Sources
Anfinsen, O. P. (2023). Role-determined discretion and its influence on psychological well-being – an exploration of the c-suite executive role.
Kakabadse, A. (2024). Global Boards: Coaching for Best Practice.