In the last decade, board dynamics has gained significant attention in the corporate governance arena. As organizations seek to improve board performance, board dynamics has become the focal point for improvement. Utilize your board by getting your copy of the Essential Board Dynamics Structures.
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You have the
ability to inspire
and guide your
board to better
performance.
Don’t be a
victim to
negative cycles.
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GROUP DYNAMICS
WE ARE WIRED FOR CONNECTION
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LEADERS
M O D E L C O N N E C T I O N S
2
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SAFE & SUPPORTIVE
ENVIRONMENT
IMPACT CONNECTIONS
3
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HARBOR NO SECRETS
IN ALL YOUR INFORMATION & COMMUNICATION
FOR MORE SECURE CONNECTIONS
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6
PRESENTATIONS MUST HAVE
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DECISIONS THAT ARE ALLIGNED
WITH CORE VALUES, MISSION & VISION
BOND CONNECTIONS
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8
REINFORCE YOUR BOARD
WITH POSITIVE INPUT
• Appreciation
• Recognition
• Individual
• Team Effort
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9
REDEFINE YOUR BOARD
THROUGH DEVELOPMENT & MENTORSHIP
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10
TURN DYNAMICS ON
YOUR BOARD WITH
PERFORMANCE & ASSESSMENT
Good morning everyone. It’s good to be here. Well, it would be probably be better at the beach. No, I am just kidding, I really want to be here. Thank you, Denise, for your warm introduction. I feel very privileged to take part in this program as board dynamics is my passion, I am fascinated by human behavior, and quite frankly by some of the interactions happen in the boardroom. I am particularly looking at you, Colin.
I became interested in the topic of board dynamics about 15 years ago when I served on board with highly intelligent and successful people who were struggling to effectively interact with each other. Has anyone ever worked with a doctor? Pretty bright, right? but terrible bedside manners. “You have four weeks to live.” Is that the best way to deliver that message? That was the balance we were all lacking in our boardroom.
Our meetings were long, unproductive, and draining. After every meeting I would wonder and ask myself, “what can we do different? And where can I get drink?” That experience led me to the field of psychology.
Research on group effectiveness actually began back in early 1900’s by Norman Triplett. His research showed that people in a group setting worked harder and more efficiently than when they worked by themselves. In one experiment, he observed a group of bicycle racers pedaling around a racetrack faster than those who pedaled alone. This effect, called “social facilitation,” occurs because the presence of other people facilitates (or increases) individual performance.
In 1940’s Kurt Lewin, founder of social psychology, came up with a term “group dynamics” believed that it was easier to change a group than to change an individual. His theory was based on the premise that “the whole is greater than the sum of its parts.” Thus, if a person changes his or her behavior individually, and then returns to his or her life, the influence of the people around this person will tend to reverse individual behavioral change. If the behavior of the group as a whole changed, then the group would continue to reinforce or stabilize the behavioral changes among its members. In short, groups are powerful drivers of change and performance.
The word “dynamics” is defined as the forces that stimulate growth, development, or change. In the group setting, dynamics are the unconscious psychological forces that influence the direction of members’ behavior and determine their overall performance.
#1 We are wired for connection.
Understanding that connection can be a powerful predictor of the satisfaction that board members seek in strong and safe relationships. For example, paying attention to the number of times board members disagree is not a good indicator of a healthy or a troubled board. Instead, paying attention to how board members respond to each other during such disagreements serves as a much better compass for how safe board members feel in that environment. In safe relationships, if members lose or miss a beat, they can quickly turn back towards each other and re-establish their connection in the group.
When board members experience safe connections, the overall performance of the board improves as it becomes possible to elicit “the best” from individual members.
Research (Williams, 1995) confirms that when people feel good about their working environment, overall business performance improves by 20 to 30 percent. From how people are greeted, speak, and where they sit, to how board members address challenges and make decisions, every step affects the larger board environment.
As human beings, we automatically “tune into” our environments. For example, think of the last time you walked into a meeting late and could actually feel the tension in the room. You sensed that there was a conflict, even though no one had uttered a word. Such awareness is biologically programmed and communicates possible “threats” in our surroundings through our five senses: touch, smell, vision, taste, and hearing. Eye contact, facial expressions, tone of voice, and body language all transmit strong signals that communicate whether a social or professional environment is safe or not.
Such was the case for one CEO who did, in fact, trigger a late-comer’s negative reaction. The rest of the board was forced to watch in silence as the players threw insults at each other. This immediately shifted the dynamics into dangerous territory and diverted the board’s attention from the task at hand.
Marker 1: The best board meetings are the product of members feeling vital and valued, taking a genuine interest in the discussion topic and, caring about their organization’s vision and mission. While the leader plays an important role in keeping members engaged, all board members should practice engagement, beginning with an effort to make the boardroom environment safe and inviting enough for members to feel like engaging in the first place. For example, establishing a “board norm” of seeking feedback and opinions from fellow board members demonstrates the value the board places on each board member’s perspective and input.
Research (Kelly & Barsade, 2001) shows that people in group settings cannot help but “catch” feelings from one another, sharing everything from fear and anger to pride and joy. For example, in seventy work teams across diverse industries, members who sat in meetings together ended up influencing each other’s moods—positively and negatively—within two hours of the meeting’s dismissal.
Marker 2: Engagement is also encouraged by thorough preparation prior to meetings. Agendas should be created and shared with members well in advance of each meeting. Feedback should be solicited on the agenda items that are relevant not only to the executive team, but to board members as well. The agenda should also reflect the interests and concerns of other stakeholders. – Microsoft Chairman, John Thompson
Marker 3. To be fully engaged, each board member should be prepared to discuss every single item on the agenda. For example, one board member who serves on six public boards allocates a minimum of three days of preparation time before each and every board meeting. This depth of preparation allows him to ask good questions, seek the best solutions for the task at hand, and evaluate options more astutely. Board members who invest time to prepare are more likely to participate and be engaged during board meetings.
Transparency brings assurance. It removes ambiguity and guesstimating, and enables board members to accurately assess the state of the organization. For instance, answering questions without being defensive and being open to differences of opinion foster a safe environment and encourage transparency. In contrast, ignoring questions, dismissing others’ opinions, and using manipulation tactics such as blaming, judging, or criticizing shifts the dynamics of the group into a lower gear and undermines a safe environment.
Take the case of two companies, each once faced with an issue of embezzlement. The CEO of the first company was completely open and transparent with the board, supporting its involvement in the investigation. The CEO of the second company was offended by the board’s interest in participating in the investigation and shaming the board for its intentions. Both companies resolved their issues, but mutual trust between the board and the CEO soared at the first company, while it dropped sharply at the second company.
Presentations must have relevance to the discussion topics that are outlined on the agenda and the company’s vision and mission. When their time is respected, board members want to feel valued and valuable. They are under pressure to distill the most important points from a presentation with the express intent of advancing discussion among themselves so they can make the most effective decisions as a group.
Rule 1. During a presentation, make sure that everyone is able to see the presenter.
Rule 2. Use storytelling during presentations. Storytelling is an effective technique for bringing presentations to life.
Rule 3. Keep presentations short and focused. Lengthy presentations deplete group energy and slow the board’s forward momentum, as do “ego-boosting” displays. Research (Gallo, 2014) has demonstrated that such limits push the presenter to be more creative .