Highest on the list of directorship skills is the ability to adopt a strategic perspective, to see ‘the big picture’. In the words of John Carver, “The board’s job is to create the future, not mind the shop”. Creating the future demands strategic thinking skills. Boards add value to their organisation’s and their CEO’s work by lifting the discussion horizon to the strategic level, by identifying and focusing on the organisational ‘ends’ and understanding the meaning of these and their implications for the various stakeholder groups served.
A director should not be required to have the skills to run the organisation but he or she should know what running the organisation entails. While the board does not determine the operational management structure, directors should have a basic understanding of how organisations should be structured and operated in order to deliver appropriate results.
Directorship may require only a general understanding of business and organisational life, but there can be no escaping the need for all directors to have at least some understanding of financial management. Every director should be comfortable with traditional financial statements. They should be able to read a balance sheet and understand the connection between this and the more detailed profit and loss and cash flow statements. Every director should understand what is required for organisational financial security and be able to enter into a meaningful discussion about the current financial position, risk and future financial requirements.
When directors join the board with relatively little sector or sport-specific knowledge, they, and the board as a whole, are obliged to ensure they have the opportunity to quickly fill knowledge gaps. New director induction will assist this process. However, don’t override the requirement that every director must accept a personal responsibility to remain up to date in their knowledge about the sport or the sector so this can be applied in the board’s strategic decision making and performance monitoring.
It is imperative that all personnel associated with the organisation have a strong commitment to the Mission or Purpose of the organisation and to its Values. It is even more important for the board to demonstrate tangible commitment because of its stewardship role. Directors not committed to the Mission and Values will often be at odds with the rest of the board and staff, and could easily lead the board in a direction that is inconsistent with the organisation’s fundamental reason for being. This could have dire effects including a loss of reputation, public support and funding.
Listening to the viewpoints of others, suspending judgement and putting oneself in the shoes of others are all essential boardroom skills, none more or less important than any of the others. Equally important is the ability to ask probing or exploratory questions.
It is imperative that directors can effectively question the CEO, and other senior staff present at the board meeting, or outsiders from whom the board is seeking expert advice. Key here is the ability to ‘disagree without being disagreeable’.
At the heart of good decision making and a commitment to those decisions is an inclusive and rigorous process of hearing and understanding different information, ideas and points of view, and being part of the team. An understanding of the importance of dialogue (as distinct from traditional debate) and skill in its application are topics that have great relevance to all boards.