Why Do Some Of Boards Of Directors More Successful Than Others? “I have already presence on the boards of companies listed and unlisted stock market, and companies from the public and private sector, and non-governmental institutions, and the Faculty of Business and Commerce, and the companies that I own, in addition to the houses of expertise in many of the economic and social sectors since I was in the sixth session of the Omnia APP Review. Overall, I have over 16 years of multiple experiences as director of non-executive and president of the Board of Directors of both. ‘So said Wendy Louhab social leader and director of non-executive Fund for Women in South Africa project finance in talking about her experience as a member of the Council of desiring Management the participation of its useful and commandments about how to contribute effectively to improve the performance of boards of directors and transparency in corporate governance alerts.
When I joined for the first time to the Board of Directors of listed companies in the stock market in South Africa, I did not have any idea what is going on inside the boardroom, and what is being discussed, and how they can contribute to a member of the Council and the learning and the transition to an effective and influential manager. The first thing that has been proposed is to sit down with the chief financial officer prior to each meeting to review the financial reports, which were for this company represents 70% of the Governing Council agenda; which is the most exciting and awe fears a new member of the board of directors of the content. Once a regular on the numbers began to ask questions, and that was irrelevant or not is wise in the eyes of the so-called Council members veterans, who were mostly white-skinned men ten to fifteen years at least. However, I continued to ask questions, and after five years, finally succeeded in persuading the Omnia Investments company to make major brand names and achieve success and get a large share of the market is not enough to ensure the continuity of the company in the future and survival in the competition. My goal has been achieved in the company urged the new priority is included in its business model in order to develop a marketing capability to their products.
Here I am the oldest of my experience during my presence for the first time the board of directors for several reasons. Overall, my experience gave me a chance and that allowed me to contribute effectively as a member of the Board of Directors over several years develop healthy habits. This was before the transformation of corporate governance to one of the necessities of the business, and with the presence of South Africa in the forefront of countries in terms of compliance. Through my experience, should the members of the Board of Directors to acquire these habits in order to make valuable contributions:
Preparation for the meetings of the Board of Directors: Board members should read the information and reports sent to them in connection with the meeting so that they can accommodate and communicate with the main issues for each meeting of the Board of Directors.
Regular meetings with the Executive Director: This is what allows board members to absorb things and challenges of the company.
Field visits: Board members must seize the opportunity, for example, they can visit the factories where the conduct manufacturing and interact with the operating management level process.
Ask questions: the members of the Board of Directors should not be a sense of awe toward asking questions that believe it is important to clarify or aspects that may be obvious to the management but not as well as for managers.
Identify gaps in the board discussions: seize the opportunity to add value by taking the company’s affairs, which are not much discussed in the meetings of the Board of Directors, such as succession and strategy and other similar matters based on the area of board member experience.
When I became director I had just started the establishment of the company in the development of human resources, called Omnia Investments with my focus in particular on the preparation of new employees to show effective in their jobs. The experience of the work before it is made up of all areas of the marketing department for products luxury goods companies in South Africa, Europe and the United States. And therefore I used the fields, the field in which I have had 10 years experience and a new field you’re passionate about it in order to contribute characteristically as a member Board of Directors.
As most readers of this article will realize, most of the boards of directors to have enough accountants and talented staff who know the best means to achieve growth each quarter. However, often there is a shortage of staff able to steer the Poplar to things beyond quarterly results and profits in the near term in order to consider the long-term strategy, so in terms of how do you manage the challenge and the development and use of staff in order to increase productivity, performance and competitiveness to sustainable levels can be maintained. For this, I am convinced, based on my experience, the initial board of directors and those that gained over six years, ten years, there is a very distinct characteristics that make some boards are more successful than others. The first of these salient features relating to the quality of leadership in the Board of Directors. Effective leadership in the boardroom indispensable. The world is not only suffering from economic recession, but also suffers from a chronic decline in ethics and leadership. Because the Board is the highest governing organizations, Vlzama him to start his own example of a role model, especially with regard to integrity and personal commitment and a spirit of responsibility. There must be a healthy relationship between the board and the company, especially with the Executive Director, so that the relationship of trust based on the evaluation of the experience and skill group of the Governing Council and recognize the Council’s contribution to the enrichment of the enterprise with visions of depth and new ideas and greater ability to make effective decisions, as well as best practices and habits. In my view, this is why the boards of successful and effective management are those that abound in many mindsets and those experiencing diverse in gender, , Age, work experience, cultural orientation and interests. This, of course, conditional on taking advantage of these differences in order to serve the interests of the institution and provided that they are appreciated equally.
In second place after the leadership within the Board of Directors and the organization, the ability to take advantage of the experience of each member of the board of directors and to seek their views when discussing things or having to make a decision, and listen to every point of view comes, of course, take advantage of the managers in the multi-committees of the Board, such as human resources and affairs finance, audit, risk management, appointments, and the strategy and the like. When everyone senses the importance of their opinions and they are taken into account, it will enable us to improve the quality of participation to a level beyond the conventional.
Third, when some new directors to the board of directors should provide appropriate and comprehensive guidance on the part of the institution otherwise would be required of new members to the Governing Council a lot of time to participate and add value. Fourth, I have found that there is great benefit accruing to the Board of Directors when it meets outside the meeting hall to enable managers to get to know each other and get a chance to hold a secret dialogue without the presence of management. Fifth, the Board of Directors needs to interact with team executives annually to review the strategic priorities of the institution and to emphasize them and to assess the competencies and relationships within the team. Finally, Managers must work for a limited period to allow for the existence of new blood to continue the renewal of leadership institutions.
In conclusion, I say that successful and effective boards of directors need to be dynamic, where they must develop to anticipate the requirements are, and must attract multiple mentalities, be effective when decision-making, and add value, they should ask questions, and must inspire the administration to show higher capabilities and potential, and show the courage to take decisions that are not welcome. In summary, the boards of directors must play the role of the custodian of the value system distinguishes the organization from those working on estimating the intellectual leadership and integrity.