There is little doubt that boards are under unprecedented pressure. They face a multitude of widely differing demands and, in many cases, challenges. Increasing demands from different stakeholder groups, tougher legislation, a challenging economic environment and geopolitical challenges all exert pressures on boards. Coming to grips with several of these issues at the same time has become a high stake juggling act, and now more than ever, boards need to perform.
In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses board performance under pressure with Sir John Tusa, who has served on the boards of some of the most iconic cultural institutions in the UK. Sir John was the presenter of BBC's Newsnight and the Managing Director of the BBC World Service. He was also the Managing Director of the Barbican Arts Centre and served on the boards of Cultural Institutions such as the British Museum.
"Being on a board is not a party picnic"
Sir John explains that when under severe pressure, boards need to take stock and understand that being on a board is almost as difficult, (if not more difficult) as actually running an organisation. Many board members join boards thinking it will be interesting, enjoyable, and relatively straightforward. The reality is both complicated and demanding. He notes that it is also important to remember that board members do not run the organisation, they are not the management, and they don't have to make the decisions. However, relationships are key - between the Chair and the CEO, the board, and the management team.
"You do learn by experience, and you do learn over time by observing bad decisions being taken"
Sir John explains that, to a degree, you learn by experience over time. Some of this learning is gained by observing bad decisions being taken (sometimes by yourself), which is not comfortable. There may be no perfect answers, but learning from past experience is key, so the experience of going through decisions (including bad ones) and learning from them is critical
"It's not about seeing how many times your name appears on the minutes of the meeting."
Sir John believes that the chair is responsible for the relations and atmosphere between board members. A good Chair will take a particular member aside after a meeting and have a quiet word when necessary because managing board behaviour is extremely important. Also, not everyone has to say something about every subject on the agenda. One contribution in just one meeting may be a decisive contribution.
"Always face the reality of the situation"
Sir John advocates being realistic because however unpleasant and difficult, organisations which face up to problems and deal with them always come out of financial/economic crises faster, better, more efficiently, and more successfully. The reward of facing the facts is that they are much better placed to deal with the upswing later.
The three top takeaways from our conversation are:
1. Don't expect things to be terribly nice! This is tough, but in the end, it is the satisfaction of performing your responsibility. Every time you turn up, your chances of finding real satisfaction are much greater.
2. You will be sitting with colleagues who have considerable skills. Use, acknowledge and respect those skills. This will create teamwork, and they will respect your skills as well, and start acting together as a team.
3. Even in the worst case, there is always something to be learned. You may be involved in closing an organisation down, but even this can be done well or badly, and there will be something that will be learned to use later.