Studies have shown that there is a strong correlation between the amount of continuous development that a director receives and their effectiveness on the board.
Boards that spend time in reflective and learning mode tend to communicate in more depth and are more candid with each other on the topics that really matter.
Board members should not only receive proper induction on appointment but also strive to secure at least 12 hours of board development per year.
Most codes of best practice in corporate governance require board members to undergo periodic competence up-skilling to enhance governance practices on the board itself and in the interest of the company.
Yet, a very small percentage of boards can attest that their members receive sufficient training. Studies have shown that there is a strong correlation between the amount of continuous development that a director receives and their effectiveness on the board.
Boards that are forward-looking have grasped the concept of leveraging long-term talent development efforts. They understand that personal and professional development opportunities help broaden an individual’s experience. To that end, board members should not only receive proper induction on appointment but also strive to secure at least 12 hours of board development per year, which is the recommended minimum by most codes of corporate governance.
For newly appointed directors who have inadequate experience working on a board, good training ensures that they receive the general instructions on how to actively participate in discussions during a meeting and the board’s work in general.
LEGAL RESPONSIBILITIES
Induction helps a board member understand the procedures of the board they serve on and also their legal responsibilities as a director.
Learning for a board member should be a perpetual activity and not just a preserve for inductees to the board.
Seasoned directors benefit from development programmes which equip them with skills and also ensure that they receive regular briefings on matters relevant to the business of the organisation, and changes in laws and regulations, including government accounting policies and practices.
The onus of finding training opportunities should not be entirely on the board chairman, the company secretary or a committee mandated to ensure up-skilling.
A competence needs assessment should be conducted for boards and individual directors to guide in the development of an annual development programme, which among other trainings would ensure that directors are up-to-date with the continuous professional development in their respective professional bodies.
The board should ensure that the training sessions attended by directors are highly interactive and include both structured learning and development programmes based on innovative governance thinking, and unstructured programmes where members discuss and get trained on emerging or relevant corporate governance matters.
STRATEGIC PERSPECTIVE
Investing in board development assists directors to gain a more strategic perspective and become team players as opposed to being mired by details. Taking time out for board development not only allows directors to interact in a less structured environment but it also helps in ensuring that they gel as a team.
Additionally, boards that spend time in reflective and learning mode tend to communicate in more depth and are more candid with each other on the topics that really matter, hence boosting the level of trust that then heightens team performance.
Lastly, well curated training programmes could help in ‘future-proofing’ the board.
SKILLS AUDIT
As a board develops its learning and development plan, it usually conducts a skills audit and maps the skills available against those that are likely to be needed in the future to add value to delivery of the strategic plan.
Any gaps that are highlighted in the skills audit may give insights into the board renewal process, and guide the recruitment of new board members, or inform the training needs of the existing directors.
Empowering directors to work at their greatest level is beneficial to an organisation.
Management should therefore not only look at director training as another budget line item but also consider it for the rewards it promises.
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