The Savvy Director Blog

Recently, I worked with a board of directors to prepare a list of potential interview questions for prospective board members. The questions were carefully selected to try to uncover candidates’ ‘Three C’s’ – competence, character, and chemistry.

The first two C’s are fairly obvious. Competence questions focus on education, knowledge, skills, and experience. Character questions are meant to reveal the candidate’s integrity and moral courage.

But what is the third ‘C’ – chemistry? And how does the board assess it?

“I have experienced plenty of organizations where you have very capable people but don’t get anything like the best out of them because the dynamics and chemistry are not right.” – Ruth Cairnie, Chair, Babcock International Group

Another way of referring to ‘chemistry’ is ‘fit,’ as in, “Will this candidate be a good fit for our board?” Today’s...

Everything written since April/May 2020 about ‘Building Back Better’ seems out-of-date. This applies especially to my own material!

Is it just me, or is this second/third wave of our little pandemic going to require more resilience for our boards and management teams than we needed in round one to lead through the uncertainty?

You can do this.

Nine months after the early onset of the virus, our communities, societies, and boardrooms are now thinking and talking more about diversity, climate change, systemic racism, social unrest, and an election season that just won’t go away. This is all piling on to the original goal of staying safe, keeping people funded, and figuring out what the new normal will look like.

By early summer, we did our best (?) to re-open safely. As predicted, the colder weather has arrived in the northern hemisphere along with new community spread concerns. Our friends in Australia/New Zealand are now into spring and have seen their way through...

You now have easy access to board resources all in one place. We’re talking about curated lists of podcasts, websites, blogs, books, social media and GNDI links.

Here’s why we did this for you.

Not long ago, we published a blog post called The Six Key Habits of The Savvy Director™. The very first key habit listed was Build Governance Skills.

I believe strongly that knowing and understanding the board’s role and directors’ responsibilities is an important attribute for effective board directors. You can't be a Savvy Director until you have a solid understanding of the roles and responsibilities of a board of directors, and of your own duties as a director.

The Resource Hub is designed to be useful for directors of all experience levels.

New and Aspiring Directors

I’ve done a lot of work with not-for-profits and spent a lot of time with first-time directors. I know how important it is for you to quickly grasp the fundamentals of board...

Over the years, I’ve reviewed countless proposals, reports, project plans and other documents in the course of my board work and as an advisor to boards. Somewhere in the document, often buried, there should be a section labeled ‘Assumptions.’ It lists the conscious decisions taken by management to treat the unknown as known. Typically, the list of assumptions will include finances, people, resources, schedules, logistics, etc.

Articulating these assumptions is necessary in order to make a decision. The board can question any of the assumptions, challenge them, seek verification, ask for stress testing using different assumptions, add additional assumptions, or accept them as given.

After the fact, the board can ask management to report on which assumptions held true (although, to be honest, I have seldom seen this happen.)

Everyone knows that only some of the assumptions will come true, but it is anticipated (and hoped) that variances from the listed assumptions...

Whenever I spot the words ‘governance’ or ‘board of directors’ in a headline, I automatically know the story will not be a positive one. As far as I can tell, no reporter has ever written a good news story about a board of directors.

Instead, governance stories in the news tend to focus on conflict, crisis and failure – shedding light on goings-on and machinations that were not meant to be in the public eye. However disturbing, these stories make fascinating case studies.

So today I’m going to take a look at two recent examples of board governance in the news. For our non-Canadian readers, I should mention that these concern two well-known Canadian organizations. As it happens, both are membership-based organizations.

I hope you find these case studies as thought-provoking as I did. As you read, give some thought as to what a Savvy Director might learn from them.

Mountain Equipment Co-op (MEC)

MEC is a consumers' cooperative that...

^{Pete Seeger and Bruce Springsteen perform at a concert for President Obama in 2009. H. Darr Beiser, USA Today}

“It is the hard days, the times that challenge you to your very core, that determine who you are.” Sheryl Sandberg, COO Facebook

‘Keep Your Eyes on the Prize’ is a song made famous by Pete Seeger on his 1963 album, ‘We Shall Overcome.’ It was played to keep spirits up during the 1960’s civil rights movement. Bruce Springsteen has also performed it, as have other artists. If you’re looking for inspiration, I encourage you to check out the YouTube links above.

Today it seems the phrase ‘Keep your eyes on the prize’ no longer conjures up thoughts of civil rights marches and citizen activism. Instead it has become part of the everyday lexicon of motivational speeches, whether business or personal.

Has Your Board Taken Its Eyes Off the Prize?

Over the past few months, numerous board discussions have reminded...

As individual directors, it can sometimes be difficult to see whether our words and actions in the boardroom have any effect whatsoever. This can be frustrating, to say the least. I've found that it’s especially hard for former CEOs, who are used to being the decision-maker in the room.

As opposed to the one person at the top of the org chart, the board of directors is a group of people, even though the board is said to “speak with one voice.” If there is only one voice to be heard externally, then it may seem like our individual voices are lost.

When I speak with board members, they are sometimes discouraged by the lack of a clear line of sight from what they have said in a board meeting to what the organization ends up doing. While it’s understandable, I personally think this frustration is somewhat misplaced. After all, a director’s insight is not binding. It’s just one step in a process, a step that others may end up building on.

Instead, I...

I’ve been meaning to write about governance courage for a while now. After all, it is one of The Six Key Habits of The Savvy Director.

And the Russell Reynolds research that inspired our Six Habits framework identifies ‘the courage to do the right thing for the right reason’ as one of the most important director behaviors that drive board effectiveness.

But the impetus for writing this particular blog at this particular point in time actually came from one of our Savvy Director readers, who responded to an earlier blog about Groupthink with the following comment:

“No one wants to be the director who disrupts the agreeable flow of the proceedings. But it is exactly this – sharing and listening to diverse views – that produces truly great outcomes at the governance level. The remedy don't let fear outweigh courage. You are at the table for a reason and remaining silent isn't it. Whatever you have to contribute is likely exactly what the...

I was recently surprised, and to be honest, somewhat embarrassed, to learn a professional organization I thought I knew well was legally structured as an ‘Unincorporated Association’ as opposed to a Non-Profit Corporation.

Initially, I have to admit I didn’t know what that meant. In all my board and related governance training, the focus has been on corporate governance of all types: non-profit, for profit, family businesses, private companies, and government crowns, boards and agencies.

These organizations were either legally established by articles of incorporation or by government statute. Always.

Although I am based in Canada and have earned director certification within the context of a Canadian legal system, I do know there are similar legal structures, sometimes under different names, to protect owners, members and boards from legal liability in the USA, the UK, Australia, New Zealand, Ireland, Mexico, and other countries as noted by the Global Network of...

Have you ever wondered what it takes to be a really effective board director? What differentiates a ho hum director from an excellent one? Which directors add real value to the boards they serve on vs. those who just occupy a chair?

In other words, what are the most important behaviors of an effective director?

Or as we would say at DirectorPrep, “What are the Key Habits of The Savvy Director™?”

Whether delivering governance training to a board of directors, conducting an orientation session for new directors, or mentoring an aspiring director, I would frequently encounter a similar question – just worded a little differently. I’d be asked “What do I actually have to do to be a good director?”

I didn’t have a clear, concise response for them so, with the help of my DirectorPrep co-founders, I’ve been working on a framework to summarize how an effective director actually behaves.

What’s with the...