Dear Sir, As a CBI member it’s sad to observe the current turmoil caused by poor leadership and a toxic culture at the organisation (“CBI fights for its reputation as Danker sacked over sexual misconduct claims”, April 12). The CBI probably has one last chance to put things right, and key to this is the effective delivery of a board governance review.  While it’s heartening to read that they plan to hold a “root-and-branch” review of their culture, governance and processes this will not be objective, and therefore worthwhile, unless it’s undertaken by an independent third party experienc ..read more

How the role of the chairman is evolving The world remains a volatile place in 2023, as businesses emerge from the COVID era, contend with the impact of geopolitical uncertainty, grapple with the challenges of supply chain disruption and high inflation. At this challenging time for boards the focus is on the pivotal role of the leader of the board – the chair or chairman – to help navigate the board through these uncertain times to business success.      However, the speed of external change requires an evolution in the role of the chair of the board to be an impactful leader and to ..read more

Why effective governance is critical in a recession It is widely expected that there will be a global economic downturn over the next 12 months, with western countries, particularly those in Europe and North America, being the worst hit. This is being caused by a number of factors – war in Ukraine, high inflation, the economic distortions caused by the pandemic and issues with the global supply chain. These issues have created volatility that could tip a number of countries into recession. During this challenging time it’s more important than ever that there’s good governance on the board. Hav ..read more

When should your organisation conduct a Board Review? Boards of organisations must wrestle with the important decision regarding how often they should conduct reviews to assess their performance. While boards that are not required to undertake annual evaluations (such as those listed on FTSE) still need to consider what type and scope of evaluations would be beneficial, there are a number of options available for consideration. For example, boards can choose an ‘as needs’ approach, opt for major reviews every two or three years, semi-annual or annual reviews, or incorporate evaluation into the ..read more

What’s the difference between a chairperson vs CEO? A chairperson is a senior-level position responsible for providing direction and overseeing the board of directors. This includes setting overall strategy, ensuring compliance with regulations, and appointing/managing directors. The chairman’s role is largely advisory in nature and focused on long-term goals rather than daily operations. In comparison, a CEO is typically considered the top executive within an organisation and has responsibility for all aspects of its associated operations. This includes managing finances, overseeing hiring de ..read more

What’s the difference between a managing director vs CEO? The managing director plays a vital role in managing the day-to-day operations of a business or subsidiary. They are typically responsible for managing the division’s short and long term performance, setting and achieving objectives, developing strategies, and managing finances and resources. The managing director must work closely with other senior management to ensure the divisions meet their goals. The CEO is an executive responsible for leading an organisation’s overall operations and strategic planning. CEOs set the vision for thei ..read more

What is a chairman? The chairman plays a pivotal role in any company, acting as a leader and the face of the board. The chairperson oversees all operations and acts in the best interests of the company shareholders. The Chair presides over board meetings and is responsible for setting the agenda. They have a fiduciary responsibility to ensure that decisions made by the board are in line with their authority and are not detrimental to any stakeholders. Additionally, they may also represent the company externally at events or meetings with other firms or organisations as needed. For this purpose ..read more

Delivering Effective Governance Effective governance involves people working together in a system, yet governance is too often approached in a purely legalistic or box ticking process-orientated way. Strong emotional and interpersonal connections, along with the culture this helps to create, make boards more effective and helps them to deliver good governance. In fact, effective governance demands three fundamental human characteristics that are the currency that keeps the system working well. They are trust, respect and honesty. All attributes of people! Additionally, it’s important to recogn ..read more

How the board of directors should support the CEO in 2023 The economic headwinds of spiralling energy costs, high inflation and increased interest rates will probably lead to a recession in many markets. As the global economy recovers from the pandemic, there are lingering issues with the global supply chain, a potential resurgence of Covid in the northern winter, along with the risk that the ongoing conflict in Ukraine could escalate. All this means volatility is set to be the ‘new normal’ as we enter 2023. This places tremendous pressure on organisations, particularly the CEO, to lead and ma ..read more

Time for neurodiverse boards Many directors recognise that diversity on boards is no longer a nice to have in today’s world. It is a vital element that ensures the board has access to a broad range of perspectives, which in turn enables better decision making and results. Having a diverse representation on boards is more important than ever due to the current challenges and volatility facing organisations, largely exacerbated by the war in Ukraine. Unfortunately, those boards that are taking diversity seriously are usually looking at it solely through the lens of demographics – such as gender ..read more