The Importance of Boards: Corporate Leadership in Action

By Marie O’Neill

I was recently asked what my reaction was to being elected to the EuRA Executive Board (extremely honoured and proud to serve was the answer) and it made me think about boards in general and their role in the growth and prosperity of organisations.  Many of us, when we think about corporate leadership, might not consider the necessity of boards or if they would suit our objectives, but the realty is that boards can be helpful in a surprising number of ways.  Having been a long term board member of EER, an appreciator of our own board as a co-owner and now an elected board member of one of our industry’s most impactful organisations, I wanted to examine what it is that a board can offer and why it might be just the thing your company is missing.

What Can a Board Do for My Company?

Depending on the type of board that would best suit your business, it can have a range of short term and long term benefits, particularly in terms of growth, guidance and profitability.  Generally speaking a board of directors will act as a governing body, with the aim of guiding management, shaping company strategy and investing time as stakeholders of the organisation.  Here are some of the key ways in which a board of directors can be valuable:

• A good board will make a company more accountable for its progress with disciplined compliance and performance reviews.
• Strategic Planning. They can help to set the direction of the business, suggesting potential revenue streams, long-term objectives or preparing for relevant exit strategies.
• Corporate Governance. A board can help protect the framework of your business in terms of appropriate corporate governance.
• The right board directors will bring enthusiasm, wisdom and expertise to their role, as well as a genuine desire for success.  Their input and collective efforts will add value that positively impacts productivity, customer satisfaction, employee engagement and the bottom line.

There are also some slightly more surprising benefits:

• Gain diverse viewpoints. A board of directors will have a strong mix of perspectives and experiences that can bring to light new avenues of thought.
• Get more holistic insights. The board isn’t stuck in the day to day of the business, so they can see things from afar without getting lost.
• Create a safe space for strong feedback. A board should be a place for honesty and candour, where leaders and managers can be given constructive feedback, even in areas they might be sensitive about, from people who aren’t afraid to give it.
• Plug knowledge gaps. Good business leaders recognise that their skill set is not all encompassing. Having board members with experience in fields such as legal, financial, M&A etc can be extremely useful.

Bespoke Boards: Effective Corporate Leadership

While there are so many potential benefits to having a board for your company, it is essential that you have the right one.  Many of the ‘traditional’ models we associate with boards wouldn’t work with certain companies and an evolution in the way we build board structures has already resulted in different frameworks that companies can choose from.  As a company owner or senior leader, you need to be fully aware of the capabilities and limitation of your organisation.  This frank evaluation needs to be paired with a honest assessment of your goals, in the short-term and long-term.   Once you have this, it will help to define what type of board would add the most value to your business.  Perhaps you need a board who will guide you on strategic planning or ensure improvements in your corporate governance approach?  Maybe you could benefit from the wisdom of industry experts (or even non-industry experts with a fresh perspective)?  Should your board be more advisory or mandated? Have you thought about the type of people whose opinions you respect and trust the most?  These are questions that only you can answer, but there are plenty of people who can help you create, run and manage that board once you have decided.

The EER Experience

I can comfortably say that the EER board has been extremely impactful in our strategic direction and has continued to be a valuable resource for both Aideen and myself, as senior leaders and now as co-owners.  Our board is populated by several visionary business professionals and is managed by Changeosity, the combination of which has enabled us to significantly expand our way of thinking, implement more effective forms of accountability and draw vital knowledge from experienced individuals who have our best interests in mind.

No matter the size or objectives of your company, if you are considering the introduction of a board, it can provide a range of positive benefits if put together correctly.  Finding the right fit and setting the right tone will increase its effectiveness and, as a leader, you may well come to truly appreciate the support, guidance and sounding board offered by people you can trust and rely on.  If you would like to discuss your options or have question on this topic, or on any corporate governance issues or corporate services that EER could assist with, please get in touch on info@eerme.com or +971 (0)4 421 1819.