The role of the Board in a time of crisis – planning for the new normal
The Board is responsible for the success of the organisation. Crises present both threats and opportunities, and at this time, the Board is key to both shaping the business for the future and enabling the delivery of the strategy.
The role of the board is to set purpose (why do we exist?), define the process, and deliver the pay-off (what is in it for me?). Purpose is the thing that keeps us going on a bad day, and I would suggest that in these unprecedented times most of us are experiencing more of a bad year than a bad day. Process is a high level view of how we might deliver that purpose and pay-off is why any of us should be inspired to, believe in, and follow that purpose.
Only through clear decisive leadership will everyone within and without the organisation be engaged. Engaged stakeholders, clear on what they need to do to ensure the survival and even prosperity of the organisation have a chance that they might see what the Board sees and subsequently own it and do it.
If we look at this with the aid of a simple model, the role of the Board is leadership to clarify the purpose, process and pay-off whilst the followers see what they have to gain (see it), they take ownership (own it) and they do it (do it).
Recently I led a seminar for the IoD addressing how the Chair in their leadership capacity helps the Board navigate through the new normal. There was lively interest. A number or organisations appear keen to address their Board effectiveness in the rapidly evolving Covid-19 environment which leads me to wonder whether many organisations are ready to adopt an approach based on this type of model. The first step may be to get buy in from the Chair / Chair function in order to lead the board down this thought process. Are you experiencing the same type of challenges?