There is no alternative to heterogeneity. Different views and opinions from persons with different experience and competence enrich discussion and provide for better decision-making. People with similar views and opinions on a board of directors can fall into the trap of immobility, recycling of the same ideas year in-year out, lack of innovation in policy and strategy. Grid-lock.
A few weeks back I wrote about the millennials and the Gen Z, and how businesses and employers need to change to attract and retain them.
It is challenging times for members of board of directors of companies. Boards have never had it so hard. They are pressured by the market to have their companies giving short-term results when they understand that the business is there for the long-term. They are asked to comply with stiffer regulations, when they should be focusing on business strategy and performance. Meanwhile, they are being hounded by small shareholders and the public on the social media as their professionalism, experience and performance is being challenged by attacks that they are not doing enough, that they are being highly (or excessively) paid and that they have conflicts of interest.
The selection of directors on boards is often criticised for the fact that it is always the same persons who are invited to sit on various corporate boards as independent, non-executive directors. Usually, these are persons of extensive experience and social standing that give prestige to the board of directors besides the benefits of competence and experience. Truly, blue ribbon boards with a list of important well-known names sitting around the table.
The very basic reward philosophy deals with how reward can help in achieving performance goals whilst underpinning the company’s core values.
Every business has its own reward strategy, even if not written. It aims at linking reward strategy with the company brand and organisational performance.
Chairing any meeting is a challenging task, and the burden of responsibility gets heavier when chairing board meetings where decisions are taken that have a direct impact on the business, its prospects, its shareholders and its employees. My experience with chairing boards has given me great satisfaction and a sense of fulfillment in my career, but there were instances of disillusionment and silent despair when the board finds difficulty in being steered in one direction as personalities become more important than projects, performance and results.
