Authenticity for Board Directors

Authenticity is a popular word among business leaders these days. Managers are advised to bring their full selves to the office, to engage in frank conversations, and to tell personal stories as a way of building trust and improving group performance. It’s a powerful way to lead with purpose and integrity.

That got me thinking about how authentic leadership might apply in the boardroom. Can board directors adopt an authentic leadership style in the boardroom? And even if they can, should they? Would a truly authentic director bring more value to their board? Would our boards be better off if we all removed our masks in the boardroom?  

With these questions in mind, this issue of The Savvy Director delves into the concept of authentic leadership in the context of the boardroom.

What Do We Mean by Authentic Leadership?

Authentic leadership refers to a leadership style based on staying true to yourself and fostering genuine connections with colleagues. Leaders who practice an authentic leadership style don’t rely on authority, position power, or charisma to motivate their teams. Instead, they emphasize transparency, honesty, and ethics, building healthy relationships through trust and establishing a culture where everyone feels valued and heard.

Authentic leadership means being willing to admit mistakes, being transparent, showing empathy, and making decisions based on solid values rather than short-term gains. Practicing this style of leadership isn’t always easy, and it may not come naturally. But the rewards are worth the effort.

Elements of Authentic Leadership

There are a number of models of authentic leadership out there. To keep things simple, we’ll stick to the one proposed by Walumbwa et al in 2008. This model comprises four fundamental elements: self-awareness, relational transparency, balanced processing, and internalized moral perspective.

This model resonated with me because of the heavy emphasis on ethical decision-making — a fundamental expectation of board directors. Let’s consider each of the four elements and how they might apply in a boardroom context.

Self-awareness

Being self-aware is the foundation for authentic leadership. Authentic leaders understand their own strengths, weaknesses, values, motivations, and goals. This self-awareness helps them stay grounded and allows them to lead with purpose.

By cultivating self-awareness, authentic leaders gain insights into their own behavior and understand how their actions impact others. As a result, they’re better able to manage their own behavior and establish positive interactions with others.

This particular element of authentic leadership is easily applied to board work. In fact, we explored the importance of self-awareness in an earlier Savvy Director post, Seeing Ourselves Clearly, making the point that when you’re self-aware, you can be more effective in your role as a director. Knowing yourself and understanding how others see you are important to achieving authenticity as a board director.

Relational transparency

Relational transparency is a fancy way of saying “Be open and honest in your communication." Transparency means sharing your feelings, motives, challenges, and even the occasional misstep. It involves presenting your authentic self to others, disclosing information about yourself, and expressing your true thoughts. Transparency builds trust and helps create an environment where everyone feels valued and supported.

In the workplace, transparency cultivates a sense of fairness and ethical responsibility by providing people with a clear understanding of the decision-making process. This in turn fosters higher levels of job satisfaction, organizational commitment, and increased engagement.

Mutual trust is just as important in the boardroom — a point we made in our earlier blog post, Trust and The Savvy Director. In Ken Blanchard’s ABCD Trust Model described in the article, “C” stands for “Connected (Cares about others. Listens well. Open and empathetic.)” — a dimension that corresponds almost exactly to the authentic leadership element relational transparency.

Balanced processing

Balanced processing refers to how well a leader can select, interpret, and objectively analyze information without bias. It includes being willing to consider views that challenge their own. By asking for input, actively listening, and respecting diverse viewpoints, leaders can enhance the quality of decision-making and foster engagement.

In the workplace, leaders who demonstrate fairness and equity in conflict resolution and problem-solving enhance people's satisfaction with the organization, fostering an inclusive and collaborative culture, where decisions are made with careful consideration.

In the boardroom, balanced processing is related to having A Critical Thinking Mindset. Critical thinking isn’t about criticizing. It’s about how you approach problems, issues, and arguments. It’s about objectivity, asking questions, having an open mind, and relying on evidence. Critical thinkers are aware of their own biases and take steps to neutralize them. They challenge assumptions and engage with others to find solutions.

Internalized moral perspective

I must admit, the words “internalized moral perspective” gave me pause. I prefer something a little more straightforward, like “high ethical standards.”

But the point is that authentic leaders are guided by internal moral standards and values rather than external ones. Their behavior and decision-making are consistent with these internalized values. In fact, consistency is a hallmark of authentic leadership.

In the workplace, adhering to high ethical standards fosters qualities such as foresight, intentionality, self-reflection, and self-responsiveness. 

In the boardroom, high ethical standards are of paramount importance for directors. As described in our earlier blog post, Ethics in Board Decision-Making, boards are often faced with making decisions that have ethical dimensions. Not only that, the ideas expressed in our post Boardroom Character make the argument that traits like integrity, ethics, and honesty are table stakes for any director on every board. 

Authentic Leadership Pros and Cons

Let’s start with the good stuff. Authenticity in the boardroom brings some serious perks.

• Trust. When you’re real with people, they’re real with you. Authentic directors inspire trust and loyalty.
• Engagement. People want to work with colleagues they believe in. When board members feel connected to you, they’re more engaged and motivated.
• Collaboration. Authenticity creates a safe space for open communication, which encourages teamwork.
• Resilience. When challenges arise, authentic board leaders guide their organizations through it with confidence and calm.

Here are a few hurdles authentic directors might face.

• Feeling vulnerable. Letting your guard down and being open about your struggles or uncertainties might leave you feeling exposed.
• Finding the balance. Staying true to your values while navigating boardroom politics isn’t always easy. Diplomacy and authenticity need to go hand in hand.
• Time commitment. Building trust and genuine relationships takes time and consistent effort.
• Inappropriate in certain situations. In high-risk or emergency situations, there’s no time to build consensus. In such cases, a more directive leadership style is called for.
• Sharing too much. Self-disclosure can backfire if it’s hastily conceived, poorly timed, or inconsistent with cultural norms. Getting it right takes a deft touch.

Authentic Influence

Let’s say you want to be more authentic in the boardroom. Experts recommend these steps:

1. Reflect on your values. Take time to think about what truly matters to you. What principles guide your decisions?
2. Get to know yourself. Spend time understanding your strengths, weaknesses, and emotional triggers. Tools like journaling, feedback from trusted colleagues, or mindfulness practices can help.
3. Lead with empathy. Put yourself in others’ shoes. Listen actively and show that you’re genuinely interested.
4. Speak your truth. Be transparent in your communication — whether it’s sharing the reasoning behind a decision or admitting when you don’t have all the answers.
5. Find your authentic voice. Don’t mimic styles of communication you’ve seen other directors use. Find a volume and rhythm that’s natural for you.
6. Share your stories. Storytelling is a powerful way to reveal your true self and illustrate important lessons. Just use discretion about when and how much to share in the boardroom. (See the HBR article Be Yourself, But Carefully for more on this topic.)
7. Align your actions with your words. Consistency is non-negotiable. Make sure your behavior reflects your values. You don’t get points for knowing the right thing to do, you have to actually do it.

Your takeaways:

• Authentic leadership is based on staying true to yourself and fostering genuine connections with colleagues.
• Authentic leadership is as valuable in the boardroom as it is in the workplace.
• Being authentic in the boardroom involves self-awareness, communicating openly and honestly, processing information objectively, and adhering to high ethical standards.
• To exercise authentic influence in the boardroom, start with knowing your personal values and being aware of your own strengths and challenges. Show empathy to others, be willing to reveal your true self, and align your actions with your words.

Resources:

• Authenticity. Psychology Today Canada.
• How Board Members Can Inspire Teams Through Authentic Leadership. © Aaron Hall.
• What Does It Mean to Be an Authentic Leader? Here’s How to Thrive. Manoela Caldas. The Muse. December 2024.
• A Comprehensive Review of Authentic Leadership Models. Xie Jiewen, Jamilah Binti Ahmad, and Lu Xiaoyang. International Journal of Academic Research in Economics and Management Sciences. July 2024.
• What Is the Authentic Leadership Style? 3 Real-Life Examples. Nicole Celestine, Ph.D. Positive Psychology. December 2021.
• Authenticity and Corporate Governance. Erica Steckler and Cynthia E. Clark. Journal of Business Ethics. April 2019.
• Be Yourself, But Carefully. Lisa Rosh and Lynne Offermann. Harvard Business Review. October 2013.

Thank you.

Scott

Scott Baldwin is a certified corporate director (ICD.D) and co-founder of DirectorPrep.com – an online membership with practical tools for board directors who choose a growth mindset.

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