Sunday, August 01, 2021 / 07.30AM / Ottoabasi Abasiekong for WebTV/Header
Image Credit: FITC Nigreria
Participants at the FITC Board Leadership Programme themed 'Developing Board Competencies and Leadership Mindset for Board Effectiveness and Business Growth' agreed that companies and organizations should be strategic in their quest to achieving sustainability and dynamism.
Speakers on the first day of the forum outlined the various areas boards, should explore in driving efficiency in organizations.
Mr. Yemi Adeola, Board Chairman, Lenox Group, discussing the topic "Roles and Responsibilities of the Boards of Directors: How Directors Can Exercise their Responsibilities for Board Effectiveness" identified the following as anchors for board effectiveness across companies and organizations;
He added that companies need to show short-term, medium-term, and long-term sustainability plans and the board has a critical role to play in achieving them.
On the challenges to board effectiveness, he cited a KPMG 2016 report which highlighted issues like budget/resource constraints, conflict of interest/related party transactions, overrepresentation of controlling shareholders, underutilization of third party resources/research, and limited independent representation.
The former MD/CEO of Sterling Bank believed that collaboration is fundamental to the survival of boards and in extension corporations and organizations.
Speaking on how boards can avoid disputes on the board, Mr. Yemi Adeola stressed the need for board appraisals, retreats, adopting a dispute resolution policy, ensuring a proper flow of information, a culture of effective discussions, debates, and deliberations.
Giving her presentation on "Strengthening Board Dynamics for Effective Performance" Adaora Ayoade, CEO EZ37 Solutions Limited said, "Board dynamics was the way individual directors interact with each other in carrying out their duties, as directors to collectively provide robust strategic direction and leadership for the organisation".
According to her, there are four critical pillars for achieving robust governance and efficient boards namely; People, Information, Structures & Processes, and Governance Structure.
In the area of 'People', she called for diversity to be entrenched in the board composition and effective leadership from the Chairman covering the 3Es: Engage, Enable and Encourage.
She stressed the importance of corporate governance for the boards, citing the example of Yahoo, a global tech company that experienced structural challenges that led to the appointment of 6 CEOs in 7 years (2007-2014).
Ayoade called on boards to give high priority to governance, which is also key to the sustainability of companies and organizations.