I did this on July 1st and its a bit...WOW
It caused a little stir & surprised me in that so many folk I know got in touch by messaging, posting, ringing, emailing...because they saw a similar problem but worse, a good number thought I was talking about the club, group, board they're on. Think as of last night we're up to 11 different groups that have problems according to those who got in touch.
But it brings on a common problem I've seen with several large groups with boards/management committees. They have unknowingly formed factions & power bases and it's holding them all back.
Some of the common things they have in common, not all but most common...
- Dry Powder - Not fully sharing all the information BEFORE a board/committee meeting & keeping information aside ready to blindside others or ambush motion where the opponents have to make a decision on the spot without prior knowledge of all the information or knowledge of any other relevent knowledge they may need.
- Probably before the Dry Powder point should be, who is the board. Yes even if you don't use that term those running the organisation in the best interests of the organisation ARE the board. You have your AGM, your BOARD meetings and underlying committees & executives. That's the rough outline of the line of authority, all reporting back up eventually to the AGM, the members. Know who the board actually is, know your legal rights & responsibilities, exercise them fully & don't let anyone silo information or decisions away from anyone or you lose transperancy, accountibility and have installed a wrong & distorted governance model that suits the crafy and/or corrupt.
- Personally undermining - Getting personal. Logging others as aggressive or untrustworthy behind the scenes to try & undermine their credibility without touching facts or core central elements of a debate.
- Silo formations - Locking up information within hard to access cells. If a serious decision is required ALL must have what is reasonably all the information. If you cannot ask questions or information is hidden you have a problem..Remember the Corporations Act is very clear on this, a director has the right to be heard, the right to information & the right to ask questions. If anyone hampers or denies you the ability to exercise these rights they are breaking the rules. If you yourself fail to exercise these rights YOU are failing in your responsibilities.
- Play well with others - It doesn't matter if you hate someone or they hate you or both. If you're on a board or management committee you must work well with others no matter what your personal view of them is. You must have their back, they must have yours because its in the best interests of the organisation & thats what your fiduciary duty is. Keep it.
- More to come no doubt... 3rd of July as I type, no doubt over the next few days more "things" will cross my mind that are things holding groups back. Future edits to come
- 7th of July as I type, Board Culture. It needs to be healthy, non toxic and collaborative. To get there you must have a good board structure. A widely known understanding of the rules, everyone's role, their rights & responsibilities. No over reach or micro managing. Work together no over one another. Some outfits have a toxic and/or inefficient workspace, it'll often stems back to poor knowledge, understanding of the rules. Some outfits will need tighter fitting rules. As per the old saying "The Easiest Way To Do Anything Is To Do It Properly"
- 9th of July Addition - If you or you & a group of others try to implement change, those previously at fault may not agree with you trying to install proper due diligence, good goverance and some tighter fitting rules. You may end up solidifying 2 (or more) factions within. Key points here...stick to the plan that promotes good rules & sticking to them without fear nor favour...good corporate governance. Let those who oppose do & say whatever they want. Then you end up with 2 factions all right, one that's trying to install proper good governance without fear nor favour & those who oppose it but at least you don't have one rule dodging faction replaced by another rule dodging faction. YOU DO NOT NEED AN ANIMAL FARM SCENARIO WITH ONE GROUP OF PERSON INTERESTS REPLACED BY A DIFFERENT GROUP OF SELF INTERESTS.
Go for change to proper good goverance and let critics do & say whatever they want, they have a right to. Do not hamper their rights as directors or part of your board. Let them argue their case for less rules, for lesser rules, higher legal exposure & low levels of compliance, fiduciary duty & new efficiencies. Go to the rules that protect you & everyone and avoid the sieges that prevent compliance.
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