Carl Bates on board culture: Creating a culture of performance & accountability
According to Carl Bates, corporate governance expert at the Mauritius Institute of Directors’ workshop, the most powerful board culture creates massive value, empowers management and has a succession plan dealing effectively with conflict where CEO, shareholder and managerial performance are factored in as well.(Image: Company)
The Mauritius Institute of Directors (MIoD) organised a breakfast forum for Chairmen, Managing Directors and Chief Executives, with the guest speaker being Carl Bates, a global leader in the education and implementation of corporate governance as a performance enhancement tool.
The expert provided insights on the theme “Board culture: Creating a Culture of Performance and Accountability.”
Carl Bates is also the author of “Traversing the Avalanche” – a book focused on the implementation of governance as a performance enhancement tool. Besides, he is passionate about empowering business owners to break through the barriers that confine them to a life of long hours, hard work and little reward.
Too often governance is thought of as conformance, or enforcing compliance. Yet the performance enhancement aspect of effective governance is even more critical. Accordingly, MIoD expert Carl Bates shared his practical insights on the critical role of board culture as a means of driving organisational performance and creating a culture of performance and accountability.
For those company boards that have directors who are also shareholders, this forum provided valuable additional insight into managing the complexity of shareholders-directors in relation to board culture.
The objective of the workshop being to set the scene on how governance is a performance enhancement tool, discussions also hovered on continuous improvement through a high-performance board culture and board evaluations.
The workshop addressed the fact that responsibility sits with the board of directors, which has for its role to ensure a culture of enterprise effectiveness that champion values.
The management must fully understand the company’s actual culture, is expected to integrate values across all areas of the enterprise, and deepen the culture so that the enterprise lives its values in every aspect of business activities.
Carl also highlighted that when a majority of directors are shareholders, board decisions destroy the value of effective governance.
The most powerful board culture creates massive value, empowers management and has a succession plan dealing effectively with conflict where CEO, shareholder and managerial performance are factored in as well.
Finally, a key takeaway from this workshop was that the board must be willing to fire the chief executive if performance is not upto expected levels, understand the role of shareholder, director and manager, constructively address conflict and focus on enhancing their commercial acumen and ability to deliver value and growth.