Boards traditionally struggle with finding the sweet spot of their role. Often leaping between nitty-gritty operational involvement and taking a hands-off, wait-and-see approach. Either approach is frustrating and counterproductive to the intended role of the board of directors. Boards have a stewardship responsibility that is vital to the success of an organization.
Are you/ your board adding value in your role? if you are leading by providing a principles framework, you are likely on track… “on matters of principle stand like a rock, on matters of practice bend like a willow.” Principle-centered leadership is particularly helpful for the board and executive team in a crisis. During a crisis, it is common for roles to become unclear with an all-hands-on-deck mentality to steer the ship through turbulent times!! A counterintuitive approach is the winner in calm & turbulent times!
During the COVID-19 Pandemic, a principle framework empowers the CEO/organization to act with confidence knowing there is shared understanding with the board about the ” rules of the road!” Not only does principle-centered leadership facilitate clarity, it boosts decision-making, speed of execution, and results!
Principle-centered leadership begins by framing the context:
-coronavirus pandemic impacts every aspect of our business
-business as usual is suspended
-board principles framework provides directional guidepost during this time for board & staff decisions: creates shared meaning of context
Once the context is collaboratively set, the board develops the principles framework:
In light of the pandemic and with imperfect information known about the longevity of business disruption, the board provides the following decision-making principles framework consistent with our role as stewards of the business:
– health & welfare of staff is paramount
– compliance with all local, state & federal guidelines, requests and recommendations
– on-going collaboration with partners & stakeholders for understanding, influencing & support
– compliance with all industry guidelines, requests, and recommendations
– financial judiciousness exercised
– timely, ongoing, upfront, open, honest, direct, specific and caring communication & engagement with all stakeholders
– err on the side of cautiousness in all things–particularly, timing estimate of resumption of business as usual
– decisive decision-making to minimize post-pandemic business harm
-maximize opportunities for seamless post-pandemic business restart
-seize opportunities to reinvent business processes, products & services
-in all thoughts and actions, emanate a spirit of fast adapt, creativity, positive attitude & abundant mindset
-transparency in ALL actions
A principles framework in stage 1 of the pandemic reinforces the role of the board is vital and most effective when leading from the front by providing the stewardship framework and allowing the organization to perform their role and responsibilities as only they can!
This pandemic has been a painful reminder that too many pilots in the cockpit leave an organization unnecessarily vulnerable.