Bringing clarity from chaos

Cutting through the noise and offering perspective. That is how a board can add value, says business coach Elliot Royce MInstD, who specialises in governance, strategy and leadership. 

 From small and medium-sized businesses to working for one of the world’s largest engineering firms, Royce says a critical role of a director and board is the ability to bring clarity from chaos. 

“A lot of technical businesses, such as engineering, love to know all the minute details. Board members add value by cutting through that noise and distilling the disparate thoughts within individual minds in the team. This provides a clear picture of what success looks like, and how to work towards it strategically to add value to the business,” he says. 

“How do you map out what things look like in three-to-five years and how do you build the runway in terms of transforming that plan, then progressing towards that goal?” 

For small and medium-sized entities, that clarity may be difficult to achieve because people in a business or owners of a business view matters through their own eyes. They add their personal thoughts to situations which then determines what they do or the actions they take, says Royce. 

“In essence, those in the business view things from their standpoint. Where directors can really add value, regardless of the size of the board, is by testing assumptions and not being encumbered by limitations. They can add perspective. 

“Often business owners limit themselves in terms of what is possible, but a value- adding director or board can suggest something else or see an opportunity and be brave enough to chase it.” 

He says the skill is being able to pick up little pieces of information and turn it into context for the business, asking questions that bring clarity or focus to the strategic intent, and then being able to take that quantum leap to feel the rush of success. “It’s that electricity in the air when you’re really succeeding and smashing it.” 

Royce has spent most of his career in senior leadership and executive roles in HR, predominantly in the engineering and construction industries. He was on the ANZ executive team for Jacobs, one of the largest engineering firms in the world. 

He is a director of business management consultancy Beyond Potential, which he recently launched, with his first directorship experience being at The Urban Physio. He is also the advisory board chair for two medium-sized firms – indoor air testing and diagnostic company Airlab and an engineering design and compliance testing business, DE Group. 

Royce offers board advisory and succession services, focusing on building robust governance frameworks and ensuring seamless transformations and transitions. He emphasises the importance of having high EQ to avoid getting into groupthink, and not being afraid to speak up, even if that means challenging where the board’s direction is going. This can be particularly challenging where there are owners/primary shareholders within the business. 

Royce believes directors can deliver an incredible amount of value, particularly in that small and medium space. Not only can they elevate people’s capability to match the commercial requirements of a business, but they also enable the generation of superior commercial outcomes for both the top and bottom line. 

Asked what it looks like to be a good director, he says he leans on the IoD’s Four Pillars of Governance Best Practice, which champions effective culture, effective compliance, purpose and holding to account. 

He says small and medium-sized organisations should make sure they have robust processes in place, so if, for example, a project gets delayed, there are buffers in place, and you are not caught “with your pants down”. 

“We have seen the damage done to some high-profile organisations that did not have good risk mitigation or risk management in place. That led to significant issues leading to cost blowouts and reputational damage.”