The questions we ask matter, do they not?

The role of company director has become quite visible over the past couple of decades. From hardly rating a mention in the popular press or polite society fifty years ago, public awareness of boards and directors has blossomed in recent times. Questionable practices and failures of various kinds have seen boards become a source of board fascination and disdain—targets of criticism in the eyes of the business media, political class, regulators and, increasingly, the wider public. Activists, institutional investors, proxy advisors, and other stakeholders and supernumeraries have sought to exert influence and press various claims too, on both company priorities and board decision making (think: ESG, disclosures, DEI, climate change, net zero, and more besides).

While some boards have responded well to changing circumstances, others have battened down the hatches. Defensiveness can be an important response at times, but it is not a sustainable tactic given the mandate to govern (provide appropriate steerage and guidance to achieve a specified goal).

If directors are to steer and guide effectively, they need to consider information, ask questions to check progress and elicit missing information and, having debated various options, make decisions. This is crucial, for the questions directors ask may be the difference between effectiveness and ineffectiveness in role. The following list provides a useful starting point for boards intent on governing with impact:

• Why does the company exist (purpose)?
  
• Are we doing the right things, to achieve agreed purpose?
• Are intentions, decisions and instructions being actioned as planned?
• Are expected benefits [from a prior strategic decision] being realised?
• How are we monitoring and assessing signals, disruptions, and trends?
• Are we attuned to stakeholder expectations and preferences?
• How will shareholders and legitimate stakeholders be kept up to date?
• What of non-business matters, such as, funding family activities, or social or environmental concerns?
• Is enough time being allocated to scenario planning and strategising?
• Is resource allocation aligned with desire outcomes?

Do you agree or disagree—I welcome your thoughts on this! Also, what other questions have you found useful?