Webinar report: The Secret Life of Boards

There is evidence of this in sports clubs, project teams, government departments, even families.

Boards and C-suites comprise people who, collectively, steer an organisation through strategic decisions while sometimes individually running specific business functions. Unsurprisingly, tensions arise between directors from time to time.

Undealt with, these tensions can paralyse an organisation.

Boardroom dynamics have long fascinated executive coach and former dispute resolution lawyer, Joy Harcup and management consultant and occupational psychologist, Helen Hopper. So much so that after getting acquainted around a campfire at a leadership event in Rajasthan, India, they researched and co-authored an in-depth book on the subject.

The ART and Psychology of Board Relationships: The Secret Life of Boards (Routledge, 2023) explores relationships within boards, common dysfunctions and techniques for recognising and resolving conflict.

Blending their findings from interviews with 40 board members and workshops with coaches and board advisors with classic and modern psychological thinking, Joy and Helen’s research was far-reaching. In this webinar, they shared the key drivers of board dynamics.

The seven dysfunctions

Joy and Helen identified seven patterns of board dynamics that were consistent across organisations regardless of type, size, sector or geography. Awareness of these patterns and a plan for minimising their impact helps build harmony in board relations:

• Imbalance in the exec/non exec seesaw.
  The power dynamic on a board is at odds with traditional structures where one person is in charge and the rest of the group is subordinate. While the chair is the senior figure of a board, the distribution of power is nuanced. Executive directors, for example, may feel that non-execs are over-reaching, while non-execs may feel the executive isn’t sharing enough information. It’s a seesaw in perpetual motion and one needing ongoing negotiation to balance power;
• Tense standoff negotiations.
  When a board splits, factions emerge, positions become entrenched, emotions lurch to extremes and people start communicating through back channels. In this scenario, the fault lines ripple through other, previously harmonious, board discussions and stymie the organisation, potentially long term;
• Bullying.
  In their research, Joy and Helen uncovered incidences of bullying, both historical and recent. They included examples of people holding power in a domineering, coercive way, often to the extent of humiliating people. While akin to playground behaviour, it’s a tricky issue to call out because, often, bullying comes down to perception and its effects on individuals;
• Wilful blindness.
  Some boards are dangerously out of touch. Members happily agree with each other in ivory tower boardrooms, oblivious to what’s happening in their market, their wider industry sector or even their organisation. This kind of complacency leaves a business critically exposed to unforeseen (yet foreseeable) developments;
• The rubber stamp approach.
  The management and/or ownership structure of some organisations creates situations where decisions are made elsewhere and then routinely signed off by the board. Typically, this applies where directors are appointed for their extensive contacts, fundraising expertise or political influence. It’s problematic because as directors they’re accountable, yet their contribution to strategy is not welcomed;
• The diversity dilemma.
  While people recognise the importance of diversity, Joy and Helen found little in the way of long-term sustainable solutions. This could be due to a delicate paradox. It’s well documented that diverse organisations perform better than their mono-cultural rivals, yet as humans, we find it hard to collaborate with people who are not like ourselves; and
• Vulnerability to crises.
  Nothing exposes a toxic board dynamic quite like a doomsday scenario. In a catastrophe, people can behave in surprising ways. While some will show resilience and lean into a crisis, others won’t be seen for dust. Unpredictable behaviours make it difficult for a board to reunite and work through a crisis.

The ART of board relationships

So, with human psychology central to board effectiveness, what practical steps can we take to minimise conflict? In their book, Joy and Helen introduce the ART of board relationships, in which:

• Awareness begins with oneself.
  What is my role? How effective am I? How can I improve my performance? How should I change my behaviours and inputs into the group. If everyone were to adopt this conscious approach, colleagues would have more meaningful conversations around shared issues and what they as individuals could contribute to solutions. This isn’t about psychoanalysing ourselves, it’s about raising awareness of psychology in human behaviours;
• Relating focuses on building understanding and trust with colleagues.
  This makes it easier to make decisions collectively as there are proven neuroscientific reasons why trust is essential to board effectiveness; and
• Tactics (or tools and techniques) provide the means to manage board dynamics.
  They include considerations around governance which will help you decide, for example, the size of your board, succession plans and how you set the tone for good relationships among board members.

ART in action – managing the standoff

In a standoff situation, self-awareness is a vital first step. Getting feedback from others lets you see how your contribution is seen and whether you’re stuck in behavioural patterns. Assess how you perform under pressure. Remember, you have choices here. You can choose to behave as you've behaved in the past or you can experiment with new ways of doing things. Think too about the balance of emotion and analytical thinking in your behaviour.

Next, take time to relate to others. Listen, show empathy and be curious. This will help you understand the background to people’s behaviours and insights and attitudes to big decisions. It’ll also build trust and lay the foundations for strong relationships.

On the tactical side, make time to lay the groundwork ahead of a standoff negotiation. Talk to stakeholders before the meeting to get the lowdown not just on their stance but also how they’ll address the topic once in the room. If necessary, consider seeking external support from a coach or a facilitator.

Naming a difficult dynamic is also important. It gets the conversation away from the substantive issue temporarily and enables you to use your lawyer’s mediation skills to lower the temperature.