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    On complexity, pathways and outcomes

    Accountability Corporate Governance Decision Making Effectiveness Governance Leadership Performance Sustainability Value Creation
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    I have had the good fortune of time in South Africa this week, as a guest of GovernEx, a board advisory practice. To have been invited to interact with hundreds of directors, executives, academics and political leaders, to listen, learn, and offer insights has been invigorating.
    South Africa is a dynamic society. In the 31 years since nation-building was restarted (May 1994) much has changed. Black South Africans comprise over eighty per cent of the population; they now dominate the middle class. Efforts to build an inclusive society, whereby circa 63 million people can participate, have produced much fruit. But some cracks are visible: extremes (of wealth and poverty, in particular) remain; guidance introduced to enable and empower has become prescriptive over time; corruption is apparent in some quarters; and, in some cases, the pursuit of inclusion has delivered little more than a power shift, from whites to blacks. The situation is complex, of course, and hope springs eternal. But hope is hardly a strategy.
    South Africa’s political leaders have recognised the situation, and they are responding. The President, Cyril Ramaphosa, together with an entourage of business, community and sporting leaders, met with the President of the United States a few days ago. The G20 summit will be held in South Africa in late 2025. Business leaders have told me of their desire to move beyond various codes and constructs that have devolved to now impose more cost than benefit in many cases. Their question is telling: “Tick-box exercises for what benefit?”
    My sense is that great courage will be needed, if business leaders are to step beyond the pathways and structures that served the nation well in the early years but now seem to have become hindrances to further progress. Those I have spoken with this week are not without courage—and they have been excited to explore alternate pathways to secure better outcomes, amongst these the Strategic Governance Framework. The challenge now is one of deciding: whether and how to act.
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    Exploring boards and board work, thrice more

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    One of the most satisfying aspects of my work involves sharing insights gained from 'live' experiences, in the hope they might be of some value to others. Whether it be facilitating a boardroom discussion, advising a chair, delivering a keynote, leading a capability building workshop, or chatting with a colleague, the call to share my knowledge and experience is strong. So, when Mark Banicevich, Founder of Governance Bites, contacted me for a chat, I was agreeable, more so as we had previously explored various aspects of board work (the recordings are available: here, here and here). The topics Mark wanted to explore included boards in crisis situations; ethical dilemmas in governance; and, governance in developing nations. A date was agreed, and the 'record' button was pressed.
    Now, all three of the fireside chats have been published. You can watch them here ⬇️. If you have any questions having watched them, or want to check something out, please feel free to contact me directly.
    Boards in crisis situations:
    Ethical dilemmas in governance:
    ​Governance in developing nations:
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    Decisions-making, amidst complexity

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    That life is complex and unpredictable is a truism. And, though the frequency and impact may vary, change is a constant, it seems. If one is to thrive (succeed, realise goals) in such an environment, adaption is critical having detected something has changed. To ignore or pay lip-service to change is folly, and to guess how to respond is about as reliable as gambling.
    The same principle applies in organisational and boardroom settings. As in life, some of what is seen, heard or read is reliable, but much is not—to the extent that descriptors such as misinformation and  disinformation have become commonplace, even hackneyed. Consequently, those charged with providing effective steerage and guidance need to be alert, to ensure decisions about how to proceed are underpinned by accurate data from reliable sources, and insights from conversations and analysis.
    Two techniques I have found useful when considering decisions with strategic implications:
    • Take stock: Rarely does anyone have everything needed to make an informed decision off the bat. Acknowledge the existence of gaps. Ask probing questions to try to understand what is going on and bridge the gaps. Test everything (on the assumption that what seems at first to be the case may not be). Hold options lightly. Invoke an advocatus dialboli mindset, to explicitly draw out alternative perspectives. Listen carefully. Draw on prior experience too, for the likelihood of historical experiences being relevant is high.
    • Take time: Rarely does a so-called strategic decision need to be made immediately, despite first appearances and temptations in modern society to be seen to be agility, and to embrace pace and an urgency mindset. Clarify and agree when the decision needs to be made. Agree the pathway to the decision, and what intermediate decisions can be made to de-risk the strategic decision.
    If boards are to make sound decisions, directors need to breathe—to create space and time to consider options well. Boards should also agree on the decision criteria, process and timing at the outset; guard against being drawn into irrelevancies along the way; and, employ a strategic mindset throughout. How does your board measure up in this regard?
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    Bridges: a metaphor

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    I have a thing about bridges. They are, in my mind at least, points of connection: not only between physical locations separated by water or chasm, but also between people, and between seemingly discordant ideas. 
    This week I have been in the United States and Canada: in Chicago, to deliver a keynote at the Private Directors Association national conference, lead two masterclasses and fulfil other engagements; in Toronto, to speak at a Governance Professionals of Canada event and attend other meetings; and, in Knoxville, to catch up with a dear friend of some 45 years and take in some local history.
    In my downtime, I have done as I usually do: sate my curiosity—taking in the local sights, sounds and smells, and getting a sense of the history. From lakes (Michigan and Ontario), rivers (Tennessee) and vistas, to monuments, plaques and people, the social fabric that makes a place, well, a place is plain to see and feel. And, as I walked, I stopped periodically, to ponder those who went before, what they might have thought, and their intentions and actions as they went about their lives.
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    Then, last night, as I enjoyed hospitality in Knoxville, my mind was drawn to a comment my father shared many years ago, “Bridges are made for crossing, not burning.” Now, five decades on, I would add, “Bridges should be built and then crossed.” ​
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    To cross a bridge as it is being built is folly. Not only is this a poor use of resources, the likelihood of arriving at the intended destination is low. But this is what many executive teams and boards seem to do—they work it out as they go, or they assume that someone else has the matter in hand. Sometimes, they are so busy operating that they do not look past the here and now. But that is hardly a sound way to create value or a thriving business that endures over the longer term.
    The role of the board of directors is to govern, meaning to provide effective steerage and guidance. And, one of the four principles of corporate governance is ‘set direction’, meaning, to determine corporate purpose and strategy. And therein lies an awkward bridging question: If a company’s board has not set direction, what hope should the executive have of leading well; or the staff being productive; or, ultimately, of the potential of the company being realised?
    The strategic governance framework is one option boards may wish to consider, as they strive to see around corners and govern with impact.
    PS: For curious readers: The bridges pictured are the Gay Street Bridge in Knoxville, and the Michigan Avenue Bridge in Chicago.
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    When things go wrong...what can be done?

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    Boards, and an oft-mentioned but mysterious concept—governance—are topical. Daily, it seems, these terms feature in our newspapers and on social media, usually because something has gone wrong. And when it does, ​the chattering class is not slow to react. Typically, the targets of their comments are the board and management of the organisation.  That seemingly strong organisations suffer significant missteps—or even, fail outright—on a fairly regular basis is worrisome; the societal and economic consequences are not insignificant. What can be done?
    Recently, the inimitable Mark Banicevich invited me to discuss boardroom success and failure, and to offer guidance that boards wanting to lift their game may wish to consider. 
    Hopefully, our discussion is helpful and enlightening. Regardless, I welcome questions and comments, either here or send me an email.
    This is my second conversation with Mark (the third will be published in May). If you missed the first, you can access it here: Governance around the world.
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    The words we utter: Do they matter?

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    As regular readers know, I read widely; topics I explore span (in addition to core themes of corporate governance and strategy) include philosophy, neuroscience, business, history, military strategy and more besides. I usually take notes, as an aide memoire for later reference. 
    Some articles are memorable, others less so. This one recently-published article piqued my attention because it reminded me of a question I face most weeks: "What do you do?" Most enquirers expect to hear a job title or a profession, to enable them to 'position' me, which is fine if the 'job' is a well-known profession or vocation, such as a doctor, teacher, plumber or lawyer. But what about a director, or an advisor? Is offering a one-word response helpful? Might it enlighten or obfuscate? 
    For those who understand the roles of director and advisor, one-word descriptors are adequate. But for others (the majority, even most?), the response is more likely to an awkward smile, as if to say, "I wonder what one of those is or does? Does he mean a company director, a movie director, an orchestra conductor, or something else?" or, "What is an advisor? It sounds like a fancy name for a consultant." What an unhelpful interaction!
    Clarity and simplicity are vital if we are to communicate effectively. And the effectiveness of what we utter—whether our message got through—is determined by the listener not the speaker.
    ​With this in mind, I try to read the person before answering. If they appear knowledgeable of business matters, I tend to say I work with boards, sometimes adding that I help them see around corners and govern with impact; an advisor. But if not, I say I'm a troubleshooter who works with business leaders, or something along those lines. One thing I never say: I'm a consultant—they are people who make decisions and implement things for others. I don't. Rather, I ask questions to gain insight and make suggestions. Whether the client takes up the advice or not is their decision. 
    So, returning to the headline question. The words we utter: do they matter? Yes, they surely do, if we are to communicate well.