‘THE BOARD GAME – survival and success as a company board member’
by Brian Scanlon and Stephen Schneider
ISBN 9 781907 794032 – LIDpublishing.com £15.99
Most ambitious managers will rightly look forward to the happy day when they are first invited to join their organisation’s board as a director. Yet all too many may only find out the hard way, through bitter practical experience, that being a great director is very different from being a successful manager. This book is most definitely for them, and also indeed for any who might guide, coach or mentor either new directors – or even those who are already quite experienced.
The special challenge for new directors is that the experience, skills and qualities that won them promotion to the board room are not always those that will help them contribute most effectively in their new role. Not only are the roles of a director different from those of a professional manager, great directors also need to demonstrate some importantly different behaviours – as the authors of this very useful book amply demonstrate with relevant case studies and wise insight.
In particular, directors need to be able to rise above functional and operational details to help set a strategic corporate vision, not to support or defend their own ‘patch’ but rather to understand and promote the best interests of the whole organisation, in the full context of all its wider stakeholders. They also need to be able to influence and lead their colleagues, rather than command and control; to advocate, challenge and enquire rather than to cut down options or rubber-stamp others’ conclusions; and they need to manage ambiguity – not the least by being independent of other board members, but still taking collective board responsibility.
Directors also need heightened levels of personal integrity, judgement and courage. As an example, in a fascinating self-test questionnaire and scored-commentary, the very first question of 37 in total (where the authors suggest only a few may have a clear ‘right’ answer) is: ”Are you prepared to resign at a moment’s notice without compensation if you disagree fundamentally with board policy?” Not a bad place to start, even if you hope never to face such a situation!
In the body of the text, there are some very useful comments on issues as varied as strategy, board politics, ethics, compromise and decision-making, board constituencies (including external pressure-groups), power and influence, loyalties and relationships. There are also some helpful suggestions on the much wider role that directors have to play and some specific thoughts for each of a board’s Chair, CEO, CFO, other Executive Directors, Non-Executive Directors, the Company Secretary and Board Sub-Committees.
This book aims to cover all types of different organisations, not just businesses. And any reader will almost certainly enjoy (and recognise!) in particular, the analysis of some very different board cultures to be found in any field, such as the ‘Power-centered’, ‘Merit-centered’, ‘Rule-centered’ (typically found in the public sector but not exclusively) and even ‘Tribe-centered’ (where organisational performance is often determined by a small group outside the management structure, with the example suggested of the influence of a highly unionised work-force at the Post Office).
The importance of Corporate Governance, which many might say is one of the most important differences between a director’s role and a senior manager’s, is not especially stressed in the main chapters. But this is perhaps more than made up for by an excellent summary of recent UK Reports and Acts of Parliament on board governance in an Appendix, which also contains a helpful review of the transition from manager to director together with additional examples of both effective advocacy and reporting.
To cavil, one might perhaps have wished for a proper index at the back of this book, and on a couple of minor occasions for more assiduous proof-reading. But this certainly does not detract from the essential usefulness of what is a very readable book, that might stand any director in good stead – and not just at first appointment.
Jeremy Thorn has been an Executive or Non-Executive Director of over 20 different organisations in his career so far, both in the UK and overseas. He is also the author of a number of practical management books and a frequent speaker and writer on both business and organisational issues. He can be contacted at jeremy@jeremythorn.co.uk
