EB3 Peer Group Deep Dive: Navigating Board Challenges and Strategic Insights

October 13, 2024
News

At the most recent of our EB3 peer group for NEDs, Trustees, Board Advisor and consultants working at board level there was a very structured discussion which covered some crucial points.

Having signed in and revisited our charter with facilitator and mentor Andrew Marsh, we moved quickly onto a conversation about Navigating Risk vs Ambition. This included understanding what business owner wants and why, and what good questions are for the board to ask to assist this process, about what they do and don’t want. We also debated how to test the rationale and decided potentially that his should be with an external coach.

The conversation became a deep dive into how a board can establish understanding with the team and develop the plan by communicating at away days for which we agreed the use of independent facilitators is particularly helpful.

We also looked at the use of different models including Strategiser, One Page Strategic Plan, PESTEL, and SWOT which are all good frameworks to use. We agreed it was important to communicate the plan when set, to ensure that all systems support execution and accountability. Andrew advised us that frameworks such as Entrepreneurial Operating System are helpful.

Next, we looked at CEOs navigating shareholder challenges which had similar points as the first question we covered, but additionally we thought in this scenario that the role of the NED was particularly valuable. Other points included: 

  1. Ensure shareholders understand that this is not the same as being on the board (shareholder hat vs director hat)
  2. Understand what each of them want to do
  3. Put the right people in the right seats
  4. Hire for the future 

Next, we looked at the topic of a Board navigating challenges with their new CEO and agreed that a close working relationship between Chair/CEO is crucial. Top of the list is to ensure strategy and expectations have been clearly communicated and outlined, and that there has been a hard conversation around highlighting current issues. Ensuring succession planning has been considered is key, and remember that subcommittees can be helpful to drive progress and dilute risk.

We then tackled one of the member’s questions around Partnership/Shareholder Disputes. Suggestions for resolution included: External mediation can be helpful, a written policy on conflict management is good practice, ensuring a process that is transparent and visible for conflicts of interest is key.

Be clear about what is a shareholder decision and what is a director decision, and what decisions need to be taken in the interests of the business. It is also necessary to ensure any conflicts are raised and noted in advance of the board meeting

The closing question was what is the difference between an Exec and a Non-Exec Chair? Andrew advised us that the only difference legally is that an Exec Chair is full time in the business.

It really was a deep diving session this month with many questions being explored and debated openly. If you feel like you would benefit from being a member of one of the three Experience Bank peer groups, then do get in touch!

" Brilliant boards build brilliant businesses.”

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