Reducing Boardroom Conflicts

Board Secretary: We have intense discussions at Board meetings. And we waste time engaging in debates. As a Board Secretary, what can I do to make the boards function more effectively? And that my secretarial team becomes efficient and effective?

Leadershipcorp: The intense discussions are good, provided the discussions are directed to ISSUES, and not to individuals. Some basic conditions for an effective board are Maturity and SKEs.

Board Secretary: I understand maturity as ability to discuss without getting into personal fights. Is that right?

Leadershipcorp: Yes, that’s right given the context of our meeting. Hopefully that Maturity also includes patience.

Board Secretary: But what are SKEs?

Leadershipcorp: They are skills, knowledge and experience.
When people of different SKEs come together, there will be discussions before a decision. So an important task of the Chief Secretary is to ensure the relevant information is provided to Board Members BEFORE the meeting so that everyone understands the topic being discussed. Fortunately most companies select Board members based on what they know, otherwise there will have many heated discussions that may deter from effective decision making.

Board Secretary: Wow that means the Board Secretary needs to have some level of knowledge on legal, financial and management issues.

Leadershipcorp: Yes, that is why many Board Secretaries are qualified in their own right as CPA or Lawyers, etc.
And if the Board Sec is not knowledgeable of the topics being discussed, then the he or she must find the information prior to the Board Meeting.

Board Secretary: So what SKEs are relevant?

Leadershipcorp: First we need to understand the function of a Board. They are to set medium to long term goals, set budgets, approve major investments, ensure accurate fin reporting, monitor biz performance, select CEO, guide succession planning, and be accountable to shareholders.

Given the above, then the Board members must have SKEs in strategic planning, financial literacy, legal knowledge, risk management, HRM, industry knowledge.
The knowledge is not about feeling and intuition. It’s about whether you know the facts or not. When knowledge is added to experience, which will bring WISDOM that is much needed to make actionable decisions.

The three very important committees in the Board are: Audit, Remuneration and Selection. To discuss effectively at the 3 committees we need SKEs in accounting, finance, corporate law, HRM (esp pay and performance).

Board Secretary: So that means more work for me and my staff, right? And I will need to gather information from books, websites and manuals to do my Board Secretary job well.

Leadershipcorp: That’s absolutely correct. There is no free lunch.

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