Tips to build respect and trust amongst the board members
Serving on the board
I’ve always been keen to serve on the board of listcos. Personally, I’m motivated by my desire to share my corporate experience and knowledge (can’t bring to grave!), and with the collective strength of the entire board, help steer the listcos in the right direction.
I joined my first listco in 2019 (independent non-executive director). Then another listco in 2020 (later redesignated as independent non-executive chairman). I’ve recently joined another company that’s IPO-bound. I’m grateful for the opportunity to serve and I’m truly blessed for the experience gained.
Although there are various factors contributing to a great board such as board skillset (especially financial literacy), diversity (age, gender etc), size (small vs large) and independence, I consider respect and trust the most pertinent factor that makes a board great.
A well-functioning and successful board usually has chemistry- the members respect one another, trust one another and challenge one another’s conclusions coherently by asking intelligent questions. Respect and trust do not imply endless affability or absence of disagreement. Rather, they imply bonds among board members that are strong enough to withstand clashing viewpoints and challenging questions.
How do you build respect and trust amongst the board members?
Tip #1 - Be honest
Tell the truth even if it’s awkward or embarassing. Don’t give people any opportunity to catch you in a lie.
Tip #2 - Honour your commitments
Stick to agreements. If you make a promise, follow through on it.
Tip #3 - Admit when you’re wrong
If you realise you were incorrect about something, just own up to it. Admitting mistakes is also part of being honest.
Tip #4 - Admit when you don’t know something
Rather than pretend to know everything, genuinely solicit the input of others. Admit what you don’t know and consult others.
Tip #5 - Speak clearly
Speak in a way that doesn’t leave room for misinterpretation. Be clear and avoid jargons.
Tip #6 - Listen attentively
Give others a chance to talk. Listen to the views of others with a genuine motive to understand.
Tip #7 - Show that you care
Be truly interested in others.
Tip #8 - Network and build relationships
Create opportunities that help members network and build relationships. These sessions don’t have to be focused on business topics.
Final thoughts
It pays to invest time and effort in establishing and strengthening respect and trust amongst the board members. Once this is in place, the board will be able to function as a dynamic and effective unit, which ultimately leads to the board better serving the greater interest of the listco’s stakeholders. After all, isn't all for the stakeholders?
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