Non-Execs: Time for a New Approach?

Author - Ian White
FutureMakers

Boards today are overwhelmed with detail, often spending valuable time analysing past results rather than shaping the future. Non-executive directors (NEDs) should adopt a more coaching-oriented role, shifting the focus from micro-management and operational detail to forward-thinking, strategic discussions.

The Detail Dilemma

A recurring theme in Board Effectiveness Reviews is the sheer volume of detail non-execs must sift through. Particularly in regulated sectors like financial services, board papers can easily exceed 1,000 pages. Executives are often reduced to paper-producing machines, spending more time preparing reports than implementing decisions.

While the quality of board papers is important, it is not what drives company success.

The real question is: why do boards demand so much detail?

Boards, particularly NEDs, often feel they need deep knowledge of operational minutiae to fulfill their responsibilities. However, this obsession with detail can turn NEDs into quasi-executives, undermining their independence and blurring the lines between governance and management.

A Coaching Mindset

Non-execs need to embrace a coaching approach. In coaching, the goal is not to provide detailed answers but to ask powerful questions, helping the other party uncover their own solutions. This approach could transform board meetings into more dynamic, insightful sessions where the focus shifts from lengthy presentations to robust discussions.

Executives could present a few key propositions, inviting non-execs to ask questions that stimulate strategic thinking. The aim is not to dissect operational details, but to guide decision-making at a higher, more impactful level.

The Power of Concise Papers

Short, focused board papers could sharpen minds and lead to more effective decision-making. As Sir Andrew Likierman noted in his report, both the Bank of England and Amazon recommend limiting board papers to six pages. This forces clarity and ensures the discussion is centred around the most critical issues. It's much harder to write concise papers, as Mark Twain’s quote illustrates: “I didn’t have time to write a short letter, so I wrote a long one instead.” But the payoff is significant: more focused discussions, clearer decisions, and a more efficient use of everyone’s time.

Building a Partnership

Coaching involves contracting, or setting clear expectations for how the relationship will work. Similarly, boards should ensure that executives and non-execs are aligned in how they work together. NEDs can offer guidance and wisdom, especially in times of crisis, but they must avoid slipping into operational roles.

An annual session to discuss board dynamics and collaboration can be invaluable. This provides an opportunity to reflect on what’s working, what’s not, and how the board can function more effectively. It’s also a chance to fine-tune the balance between oversight and support.

Listening Over Speaking

Active listening is a critical skill for NEDs. Too often, boardrooms are filled with voices talking over one another rather than truly listening. When NEDs are more focused on making a point than understanding what’s being said, valuable insights are lost.

Peter Drucker’s advice rings true here: “The effective manager listens first, speaks last.” Boards should adopt this approach, allowing for richer discussions and better outcomes. Active listening also fosters a healthier dynamic, reducing misunderstandings and unnecessary conflict.

Embracing Silence

Though it may feel uncomfortable, silence can be a powerful tool. In coaching, moments of silence allow the client to reflect and find solutions within themselves. Boards could benefit from the same practice. Taking a moment to pause and think deeply before speaking can lead to more thoughtful contributions and, ultimately, better decisions.

Asking Powerful Questions

Rather than flooding the board with past performance data (which they can’t change), executives could present short papers outlining future challenges and opportunities. This would encourage NEDs to engage in forward-looking, strategic discussions. By asking the right questions, boards could unlock creative solutions and ideas that would otherwise remain unexplored.

Creating Presence and Awareness

A key element of coaching is creating an environment where individuals feel heard and supported. NEDs should focus on fostering an atmosphere of trust and presence in the boardroom, where everyone feels comfortable contributing their views.

This approach allows for deeper reflection and more thoughtful decision-making. It also encourages collaboration, enabling the board to function as a true thinking partnership, where NEDs and executives work together to solve the company’s most pressing issues.

A Partnership of Equals

Effective boards operate as partnerships of equals. NEDs bring their experience and wisdom, while executives offer intimate knowledge of the company’s day-to-day operations. Neither is more important than the other; instead, they complement each other.

By embracing a coaching mindset and focusing on asking the right questions, NEDs can elevate their role, ensuring that their contributions drive the company forward rather than getting bogged down in operational detail.

The Bottom Line

As you prepare for your next board meeting, ask yourself: Do we really need all this detail? Or could our time be better spent in thoughtful discussion and strategic thinking?

By adopting a coaching approach, asking powerful questions, and listening more, boards can achieve better outcomes with less time and effort. The results may surprise you.

INSIGHTS