‘‘Good corporate governance is a team activity, with its primary process being one of collective sense-making”, according to a recent Australian report.
The ‘team’ they refer to is recognised as the board and the management team.
The Board, within this team, provides the reflective capacity for management in order to improve the quality of decision-making.
The article then goes on to share that the key attributes of an effective ‘governance’ team are:
- Diversity of view and experience
- Independence of mind (as distinct from structural independence)
- Openness to alternatives
It is easy for us all to select people who are ‘like’ us, who think like us and agree with what we say. However we know that the really robust, thought provoking conversations are the ones that will bring the greatest value. Therefore we need to re-consider how we find those who meet the key attributes listed above.
Can we suggest that you seriously consider the makeup of your board or how you go about selecting your next board member? Call one of the team at Directors Inc. to start the conversation now!