Good vs. bad Board governance *

Sir John Tusa, a former BBC executive, has written a guide based on his extensive experience being a member of the board or chairman for 26 years in the UK and American organizations.

Each assignment finishes with his own “ Reflections ‘ on the mandate.

In the end, the Author offers his ‘Reflections on Reflections’, an honest and humble wrap-up of his board experience.

You will be better off reading this book (* link here).

But if you do not have the time, juggling full throttle between your executive and business requirements, I put together some excerpts, trying to group these nuggets of experience into relevant themes.

While most of the text below is quoted, some words may have been altered to allow the quote to work independently. Read some of John's Tusa ideas on good vs. bad Board governance.

• 'A “Good Chair” keeps a balance on the board, reining in the assertive and bringing out the reticent.'

• 'A “Bad Chair” has favourites, meddles in operations and allows factions to grow.'

• 'Governance is governance and management is management.'

• 'Members of the board should be collegiate friendly but never incestuously close. They should not plot or form “cabals”.'

• 'Times spent in socialization make the Board a pleasant place to work.'

• 'Good behaviour on a board demands giving full attention to the business at hand and not being diverted by phone calls or emails.'

• 'Being a board member is a serious appointment and requires attention and commitment.'

• 'Most bad board behaviour is about how people react in and with one another.'

• 'There is a time for a bold vision and a time for common sense.'

• 'However demanding boards should raise their eyes from the detailed and practical and take the long look at strategy.'

• 'Governance must keep up with the times. Make changes before events force you to do so.'

• 'Board members should ask who are the true beneficiaries of the institution. The answer will shape how it acts.'

• 'Board members should not assume the institution is more important than it is or that is beyond criticism.'

• 'No institution, however venerable, is too grand to be allowed to fail.'

• 'No chairman should think they are bigger and better than the organization they head.'

• 'Chairman needs to give their time to the organization in order to understand it, but never to think they are running it.'

• 'No director will have all the skills needed to do the job. Make sure the necessary management skills exist elsewhere in the organization to support the director.'

• 'The main board has full authority. That does not mean they need to interfere with how the organization works, though.'

• 'Taking part in an organization with effective governance is less stressful and more satisfying than in one without.'

• 'Every organization is better off with a system of governance. Bad governance holds an organization back but it can be remedied. No governance stops the organization from moving forward, that cannot be put right.'

• 'If you raise money for a capital project make sure what is promised is delivered to the letter.'

• 'Compiling “risk registers” can become an obsession and a substitute for the actual management of risks. Merely identifying and listing risks does not make an organization actively risk-aware.'

• 'Most risk registers are too long. Are they balanced by a matching “Opportunity register”?'

• 'Concentrating on risks creates a negative cast of mind while focusing on the opportunities can transform the process of taking decisions.'

• 'Boards that give time to ideas are more useful than boards that spend time ticking boxes. Compliance is important, but innovation is essential.'

• 'Do not remain on a board that devotes more time to the accountable than the speculative. It is possible to speculate without interfering with the executive.'

• 'A successful organization can fall in love with its own success; that is the time to try fresh thinking. Are you capable of the “next revolution”?'

• 'Radical self-questioning is not the only way to keep things fresh. Regular improvement can be just effective.'

• 'If a conflict of interest arises it is better to face up to it at an early stage.'

• 'A board at war with itself damages the whole organization.'

• 'A “Person of Significant Control” on a board will know the limits of their influence.'

• 'Do not abandon what you stand for and are good at. Extend and build on the base that you have.'

• 'Offering your resignation may satisfy your own feelings but think of the consequences on the others first.'
  

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