Accessing the right strategic advice at board level
“Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution; it represents the wise choice of many alternatives - choice, not chance, determines your destiny.”
We recently hosted a well-attended panel event for the Canterbury branch of the Institute of Directors which included a mix of experienced directors with diverse and extensive governance experience.
Directors are mandated to work in a company’s best interests and to ensure (among other things) that the entity is purposeful, successful, compliant, safe and future focused. Inherent with this is the challenge of successfully navigating growth pains and the uncertainty of executing new or innovative strategic initiatives. As a company evolves and grows it will need access to different advice at various times in order to mitigate risk or to manage/navigate complexity.
Ten Key insights
The key insights outlined by the panel included;
Whilst there is real value in long term advisors who deeply know the business, a company can outgrow existing advisors for a variety of reasons. A key indication can be where they no longer really challenge ideas nor present alternate solutions/insights.
Many new advisors will be introduced via the network of independent directors and, certainly, referral is the most common approach. That said a board should not discount going to the market and seeking advice from outside an immediate network.
Advisors can support board sub-committee initiatives/projects and join a board for select agenda items. This adds real value and expertise whilst also changing the conversation.
It takes courage for a company founder to form a board and then seek advice on a regular basis. Those that do tend to get business breakthroughs and lift the growth trajectory of the business.
Specialist advisors can address sensitive topics in an unemotive way backed up by data and examples which allows the topic to be explored in different ways. Clever/experienced leaders often need to be gently reminded of the options to ensure the best decision for the organisation is made.
It is important to note that advisors cannot resolve all the issues a business faces. Sometimes there is real value in the organisation working through challenging topics and reaching the solution internally.
There are times a long term advisor might be conflicted ie when they advise shareholders/family trusts. As a company grows a board can feel the need to seek independent/unencumbered advice for the directors.
When advisors are engaged they should fit the business culture, understand the business and earn the board's trust. There are times it is more appropriate for advisors to be engaged/retained by the board vs by the CEO/management team.
Candid discussions are often required to add real value whereby an advisor challenges ideas and is prepared to push back on status quo thinking to ensure new ideas are explored fully. Those who can "straight talk" often make a real impact.
Every board and company situation is quite different and a mix of technical expertise, judgement and EQ skills are essential for a skilled advisor.
Without a doubt, there is real value in accessing the right advice at the right time to actively contribute to key breakthroughs or important decisions. Some advice can be quite transactional, project based or specialist whilst other advisors may need to work alongside the company longer term complementing the board of directors.
Regardless of the type of advice or length of engagement this is an effective way to inform key decisions or to maintain momentum or speed of execution.
This article was contributed by Kendall Langston, Partner & Strategic Advisor.
This is also published on his Linkedin page: https://www.linkedin.com/pulse/accessing-right-strategic-advice-board-level-kendall-langston