Listen up, here’s the problem
Strangely, I often ponder what would be my answer if an alien life form ever asked me what value governance adds. From an interstellar perspective, governance could seem like a strange exercise: a group of disparate humans coming together at regular intervals to have discussions that lead to decisions.
I would answer that boards add value by making excellent decisions. Governance is team decision-making. Any strategy, for example, is a series of decisions about what the organisation will and will not deliver. So, the better the decisions, the more value a board adds.
Luckily, the research on what is needed for a group of people to make good decisions is clear: a diversity of views, different styles of decision-making (including challengers), trust (so board members openly share their insights without fear), and collective ownership and accountability for the decision- making process.
Good decisions are often the product of generative discussion when board members are open to each other’s views, curious about different viewpoints, and create new collective insights from the wisdom of individual board members. The whole is much greater than the sum of its parts for these value-adding boards.
In the Institute of Directors’ Leadership in the Boardroom course, the focus is on one of the fundamental building blocks of great discussions – the lost skill of listening – because many of us around board tables ‘listen’ with the sole purpose of spotting our turn to speak.
Commentators have observed that poor listening presents in several forms. ‘The Preambler’ will use long-winded lead-ins to questions that aren’t really questions, clearly showing they aren’t listening to the conversation.
You may even have ‘The Answerer’ on your board. They continually spout out solutions, usually motivated by a strong need to be right.
Or ‘The Opinionator’. They listen with the purpose of determining if the speaker agrees with their (usually fixed) ideas or not.
Meanwhile, ‘The Pretender’ gives all the right cues they are listening intently, but they are really planning what they are having for dinner.
“Hierarchy, conflict, dominating personalities, poor chairing, and the overwhelming desire to preserve relationships can all get in the way of good decision-making.”
Effective listening involves trying to connect, understand and empathise with what is being said. It is surprising that the skill of listening is considered ‘soft’ because it is hard, exhausting work when done well. It’s also surprising that given the importance of listening for discussion and decision-making that it rarely features as a key competency in director recruitment.
Hierarchy, conflict, dominating personalities, poor chairing, and the overwhelming desire to preserve relationships can all get in the way of good decision-making.
Ironically, so can board size. Research shows the more minds involved, the greater the risk of confirmation bias. Larger boards risk collectively seeking information that confirms the prevailing view. Seven members seems to be the magic number; anymore and the confirmation bias risk escalates.
So, summing up for my Martian mate, making good decisions is the answer to the question about how boards add value.
I’d also have to confess that humans do not necessarily value or invest in the skills – like listening – that are needed for good decision-making. I’d murmur this quietly so as not to point out this critical weakness and potentially open us up to a 3 Body Problem.
Jo Cribb CFInstD is an experienced director with a passion for the not-for-profit sector. She is also an IoD facilitator.