We feature Professor Bob Garratt who is a recognised international authority on governance and has wide ranging experience of Board development. He believes corporate governance and organisational leadership are national assets and provide the cornerstones for effective Boards.
Fidelio is delighted to be hosting the “Seat at the Table” Development Programme for a selected group of female executives at the Royal Military Academy Sandhurst in September. We have called on world leaders in their fields to help address key challenges women can face en route to becoming tomorrow’s female Chairmen and CEOs. We asked Bob a number of questions ahead of his “Understanding Governance and Power” session in the programme.
Fidelio: Why were you attracted by this programme?
Bob: Boards can only benefit from increasing diversity – including greater female representation. We need a broader and more diversity-embracing approach towards effective corporate governance to restore public trust in Boards. The larger the pool of people that know what they are talking about and know to what they are aspiring, the better. It is exactly programmes like these that help to expand the pool of available talent. Moreover potential leaders need preparation if they are to be taken seriously. So I am delighted to be part of a process that is encouraging better performance
Fidelio: What is the relevance of governance to leadership?
Bob: Most importantly, registration as a director is a legal requirement while no such registration is required of a manager/executive. Leadership requires preparation and the ‘Seven Duties of a Director’ which are listed under UK corporate law is a good starting point; independence of thought, care, skill and diligence, as well as ensuring the success of the business are all legal requirements. The Directors are personally and jointly liable for the company. It is also important to consider the fundamental values that underpin corporate governance – namely accountability, probity and honest dealing and transparency. It is only in understanding governance that you can be an effective leader.
Fidelio: What specific obstacles do you think senior female executives face as they move to the top of the organisation?
Bob: Actually, I believe the fundamental obstacle is generic. Board candidates rarely make the distinction between director and manager behaviours but the roles are very different. Becoming an effective director requires a rewiring in terms of skill set, approach, time allocation, thought processes and attitude. In effect it requires a career change from managing to directing and only in understanding this can one move to the top table. The Board has oversight and leadership of the whole organisation and so it is crucial that the directors transcend their inbuilt managerial mind-set. If women understand the role of the Board and the role of the individual director they will better focus on breaking the glass ceiling.
Fidelio: In your module you highlight Directors’ duties and the Learning Board. Why is it so important to emphasise these?
Bob: As I have mentioned already, there is a yawning gulf between being an executive manager and an executive director/Board director. The assumption of unlimited liability is a serious undertaking and there are four elements that expose this liability: namely oversight and accountability versus strategy and vision. Taking on Board these elements can be difficult for the Executive manager but the Learning Board helps in this respect. For example it is important to distinguish between strategic thinking and strategic planning. An effective Director is not about managing from the boardroom table – which is the easy default mode – but employing oversight where one can see trends and patterns of the business.
Fidelio: You’ve worked with leadership teams globally – do you think some sectors or countries are making particular progress?
Bob: Speaking frankly, it seems that little progress has been made anywhere. Countries such as Norway have been upheld as a relative success but the story behind the headline numbers is less than satisfactory. A quota share system does not address the issue of the pool which quickly becomes depleted and so we see the same women sitting on multiple Boards across the country. True diversity is not being achieved. A similar situation can be seen in South Africa.
Fidelio: What will the impact of greater diversity be on Britain’s boardrooms?
Bob: The key question for boardrooms, not only in the UK but universally, is “How do you drive the business forward successfully while keeping it under prudent control?” This poses a dilemma that is not easily solved but Diversity is an integral part of achieving some sort of resolution.
Professor Bob Garratt
Bob Garratt is a senior Consultant with Fidelio Partners and a member of Fidelio’s Board Development practice team. He has chaired innovative companies in London and Hong Kong and has extensive experience in Board evaluation and development in the private and public sectors internationally He was on the international experts’ panel for the redesign of the corporate governance of the International Monetary Fund in Washington DC, and advisor to the Saudi Arabian Monetary Fund on banking governance. He has written extensively on Board development and books include The Fish Rots from the Head: Developing Effective Board Directors which has become a key text on governance, as well as, The Twelve Organisational Capabilities: Valuing People at Work and Thin On Top: Why Corporate Governance Matters. He is a Visiting Professor at Cass Business School, City University, London, as well as the Chairman of the Centre for Corporate Governance in Africa at the University of Stellenbosch. He was previously on the faculty of the Judge Institute at the University of Cambridge and a Visiting Professor at Imperial College, London. He is the Past Master of The Worshipful Company of Management Consultants, London, and a Freeman of the City of London.
About Fidelio Partners
Fidelio, the Board Development and Executive Search Consultancy will be hosting the Seat at the Table for a selected group of Senior Female Executive on 8th & 9th September 2015 at the Royal Military Academy Sandhurst. This Programme focusses on the personal and professional development of Senior Female Executives and prepares them for the critical transition to the most senior executive and non-executive roles within an organisation.
If you would like to learn more on the selection criteria for “A Seat at the Table” or if you have any questions please contact Kira Raebel on kraebel@fideliopartners.com or +44 (0) 20 7759 2200.