August 2021 news

The scent of power: how boards can manage power imbalances

 The scent of power: how boards can manage power imbalances

by Karina Marcar Principal, Brabourne | Boards. Governance.

Is a director on your board someone who can sniff a power imbalance?  Or maybe a member of your executive team?  Do they exploit it, or become prey to it? 

Do they impact the effective functioning of your board or your organisation?  Have power imbalances been exacerbated or improved by remote working?

Effective boards - and board chairs - are alert to these dynamics and deal with them.

Here are some thoughts on how to detect and shift the dynamic.   Our suggestions double as good cultural hygiene.

What’s that smell?

Some are acutely aware of where they sit on the power ladder compared to those around them, including how they rate against those who outsiders may consider their peers.  

Some exploit this, in even minor interactions. 

For others, their ability to smell power may render them the victims.  They feel powerless and become increasingly disengaged, with an exaggerated sense of how low they sit in the pecking order. 

Leaders do not always see this stratification of power because the behaviour is not demonstrated in their presence.  

Have you seen:

  • the director who is charming and productive working with the board, but is disruptive in committee meetings?

  • the chair who shuts down valuable conversations contrary to their personal agenda?

  • the very competent director who resorts to pursuing their concerns gently in casual, offline interactions?

  • the very capable and affable executive, whose team in the background is under incredible strain to meet expectations?

Particular problems with hybrid meetings

Some directors (particularly female directors) have felt that well-chaired online meetings have given them a greater forum to be heard.  However, as we pulse in and out of lockdowns during COVID, hybrid meetings are becoming prevalent, where there is a mix of online and in-person attendees. 

Most often, those in the room have a disproportionate say – and may also be hard to hear for those on-line. Depending on the tech set-up, sometimes those on-line have an exaggerated presence and ability to contribute.  

What can directors do?

Consider which combination of these suggestions could help alleviate the issues in your organisation, and generally promote good cultural dynamics.

Avoid hybrid meetings, where some people are in person and some online.  

COVID-restrictions permitting, consider scheduling across the board calendar specific in-person meetings which the board can commit to (say, with an associated board dinner or a particular on-site event), together with a number of fully online meetings.

At times when hybrid meetings do occur, the chair should be aware of dynamics. The chair should reflect on the meeting protocols and how the technology is being used in order to give all directors a clear opportunity to participate throughout discussions. For tips on online meetings, see our article here.

Have the right kinds of offline communications.

Chairs should be regularly checking-in with their CEO, and more periodically with their directors.  

Chairs should focus check-ins with individual directors on the director’s experience of the board and board effectiveness, rather than on board business.  (It is important for offline conversations to avoid factionalising the board or causing issues with uneven information flows to different directors.)

Directors should focus on checking-in with executives in relevant functional areas, i.e. executives they liaise with in their board committee roles. 

Formal opportunities, like board reviews, provide a forum for individual feedback on directors.  

Whether facilitated by an external reviewer or a board self-assessment, board reviews are part of the toolkit of managing dynamics by providing a specific forum for discussing board effectiveness and how performance can be lifted.  This includes steps the chair can take to better manage dynamics through meeting processes.

An external reviewer can help unlock some of the issues that directors are less comfortable about raising in a board self-assessment process, particularly if the issues relate to the chair or another prominent director.  

Whether the feedback is consolidated and delivered verbally or in writing, it should be communicated to the individual director.  Sensitive feedback to individual directors may sometimes be better received from an external reviewer than when it is received from the chair (or, if the feedback is on the chair’s performance, than when it is received from a fellow director).

Raise the focus on people and culture on the board agenda.  

Many boards have risen to this challenge during COVID, as boards could no longer rely on walking the floor and informal opportunities to connect with staff (such as site visits) in order to monitor culture. Instead, they have used virtual town hall meetings, board reporting on lead indicators such as HR complaints and analysis of employee engagement surveys.  

How can you go further? A focus on removing systemic barriers to gender diversity throughout all levels of the organisation is one way to positively affect employee – and director - wellbeing and create an environment where power imbalances are less likely to flourish.  Executive remuneration structures can reinforce achievement of diversity goals.

Try to create opportunities to connect beyond the senior executive team.  

Give a broader range of management the ability to present to the board (or board committees), such as presentations scheduled throughout the board calendar relating to their functional area.  This gives those executives a connection and access to multiple directors.

Ensure issues are resolved in a timely and ethical way.   

Support your colleagues.  Demonstrating that the board and broader organisation live the corporate values is critical for corporate culture.

Make sure that you communicate with your colleague so that they understand what action you are taking in response to their concerns.

Contact us

If you would like to share your experiences dealing with these issues, contact me on karina.marcar@brabourne.com.au.

Brabourne facilitates board reviews and provides related governance services and leadership development. For more information on Brabourne, visit www.brabourne.com.au.

© Brabourne, August 2021