In this article, industry consultant Warren Tapp discusses some of the challenges of interpersonal working relationships in club governance.
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The Board room is the nucleus of governance in any company or not-for-profit organization.
Sometimes conflicts will arise that reduce the effectiveness of any decision-making, because individual motivations may affect decisions.
How do you get harmony?
- Identify the misaligned motivations
- Work for transparent communication
- Do motivation assessments of each director, then harness the collective motivations for success
- The Chair should foster a culture of collaboration and should lead by example
- Establish agreed objectives
- Promote diversity and inclusion of different thinking
- Provide ongoing education and development
- Implement conflict resolution mechanisms
What motivates directors?
- Contributing to the company success
- Personal reputation
- Fear of regulatory penalties
- Shareholder or member criticism
- Financial benefit, if performance is linked to their fees
- Maintaining their own ethical standards
- Being respected by their peers
Skills matrixes used to select new directors often fail to test or assess behavioural traits. This potentially hinders and adds to the many challenges of effective corporate governance.
I find it interesting that people often complete a psychological assessment to get a job, as part of the recruitment process, but directors never do. Yet they are the key people in driving company success or failure.
Understanding and harnessing director motivations are pivotal in gaining Board room harmony and aligning them with the strategic goals of the company. This way boards can navigate al the complexities they have to deal with confidently, and steer towards collective success.
Perhaps make it an agenda item for your next board meeting.
Warren Tapp
