Why set-and-forget strategies are no longer an option for boards

A word directors are likely to hear more often, if they have not already, is ‘polycrisis’. 
 
The Cambridge Dictionary defines it as: ‘A time of great disagreement, confusion or suffering that is caused by many different problems happening at the same time so that they together have a very big effect.’  
 
While that might sound terrifying, Herman Visagie, IoD General Manager, Governance Leadership Centre, says it encapsulates the ‘multi-crisis’ scenario directors are facing, including greater scrutiny and personal liability in a heavily regulated environment, mounting pressure on supply chains and productivity driven by geopolitical instability, and more frequent severe weather affecting communities and businesses. Together, these pressures also affect director wellbeing.  
 
A dramatic shift in stakeholder behaviour due to the economic downturn has contributed to the closure of local businesses, particularly in the hospitality and fashion industries. Not-for-profits (NFPs) also remain under immense pressure to find alternative sources of funding, requiring out-of-the-box thinking.   
 
“No one carries the burden of success and ongoing survival more acutely than the chair,” says Visagie, who chairs a number of boards.  
   
“That kaitiakitanga of the organisation is such a heavy burden to bear.”  
 
In the midst of a polycrisis, Visagie believes being a good director means challenging existing assumptions and focusing on becoming “opportunity-creating governors” rather than simply “compliance and checking governors”.  
 
Directors now need to take a closer look in the mirror and ask: are we doing a good job, or not? 
 
“I’ve been on boards where we’ve created space for the board to reflect collectively on our effectiveness, individually and as a group, [and looked at] what we’re doing to stay current and what we’re doing to be good governors.”  
 
But facing the reality of a polycrisis – with more information but less certainty – means boards are making decisions across multiple scenarios with “less perfect information” and within what Visagie refers to as “an evolving set of parameters”.  
 
What worked in the past will not necessarily work today. That includes  the way boards set strategy.  Directors will need to become sharper and more focused.  
  
“The days of setting an annual strategy and set-and-forget are gone . . . adaptability, introspection and the willingness to kick the tyres on assumptions are going to be core skills,” he says.  
 
With workloads increasing, peer support and connections with other directors are vital to director wellbeing, helping governors stay focused and motivated when the going gets tough.  

“Sometimes, it’s just having someone to talk to who understands the context. That is really important,” Visagie says.

Listen to the podcast to find out more, including why holding online board meetings too frequently can do more harm than good, the importance of seeing governance as a profession and a craft, and where and why Māori governance is happening outside the Māori economy.

Transcription