"I
quickly understood that it was my job to ask the dumb questions," said one of
NZ's outstanding leaders reflecting on her early governance experience when she
was often the only female board member. "Further to the point, I was frequently
thanked privately by my male colleagues for raising certain issues or asking
questions to which they also wanted to know the answers." An experienced male
director commented at the same workshop that, "...in the boardroom, men often
hold back from asking questions because they seem to feel a gender obligation to
behave as if they understand everything."
Research also seems to
support these observations that male dominated boards might be deficient in
their ability to inquire and question effectively. For example, one US study
suggests that, compared with men, women directors are likely to show greater
persistence than their male colleagues in pursuing answers to difficult
questions (1).
Regardless of their membership mix and whether there
are verifiable gender differences, boards should take active steps to ensure
that they do not suffer from an inability to adequately inquire and question.
Where this inherent learning disability exists the risks are high indeed.
Valuing the quest for answers
The problem of inadequate inquiry
processes may also reflect a particularly narrow and old fashioned view of what
directorial skills should be sought when making board appointments. For
example, on another occasion, one of Australasia's leading chairmen at the time
was speaking to a group of aspiring directors about their prospects of getting
onto a listed company board. He stated rather patronisingly that a candidate for
one of his boards who hadn't managed a $100 million turnover company wouldn't be
seriously considered for appointment. That put down immediately eliminated not
only most of the women in the audience but also most of the men. Many of them
had built outstanding careers in other fields and had skill sets and
perspectives that would prove very valuable in the boardroom.
Defining intelligent naivety
Our first mentioned informer referred
to her use of 'dumb questions'. A much more positive and accurate label to
refer to the capability we wish to endorse here is the term
intelligent naivety. Explicit value is ascribed in some professions
(e.g. nursing) to the role of naïve inquirer. Like much in corporate governance
this concept is inherently paradoxical. It is about a board's ability to use
the undoubted intelligence of its members, both individually and collectively,
to ask profound questions about matters they may know comparatively little
about. Such questions often go to the heart of business strategy and even
organisational purpose. When well formulated and well timed, intelligently
naive questions can force the whole board to take a step back, to re-evaluate
its basic assumptions and long accepted analyses.
In one
respect the application of intelligent naivety is not new to most boards.
They welcome or at least tolerate the types of questions that proactive new
directors should be expected to ask in order to get up to speed. New board
members are not generally expected to know as much as longer serving directors
about the business. The challenge for every board, however, is to not only
accommodate the curiosity and 'need to know' orientation of newbie board members
but to encourage longer serving members to adopt a similar mindset. One of the
most sought-after director attributes should be the confidence to ask, and
continue to ask until a satisfactory answer is forthcoming, the 'what?' and
'why?' types of questions.
Once the attribute of intelligent
naivety is understood and applied by a board it is less likely to fall into the
trap of 'group think'. This is the phenomenon which results in poor
decisions being made collectively which their intelligence would not have
allowed directors to take as individuals.
Creating a conducive environment
Unacknowledged aspects of board
cultures often discourage the exercise of intelligent naivety. For
example, status differences may mean that some voices are more likely to be
heard (and acknowledged) than others. Unexplored differences in
expectations about the way individuals should participate may result in some
individuals 'holding back' while others occupy a disproportionate amount of the
board's air time. Because board membership is often valued as a form of
recognition or social inclusion, individuals may be reluctant to prejudice their
relationship with boardroom colleagues by 'rocking the boat'. Undue
executive dominance of the board's thinking is also likely to inhibit directors
from the expression of intelligent naivety.
The first step is to
raise the board's consciousness of the value of exercising intelligent naivety
and to discuss ways in which the board can encourage and support all members in
its application. Resultant expectations should be made explicit by their
inclusion in directors' job descriptions and in a statement of board values or
operating philosophy forming part of the board charter or other governance
documentation. It is important to state clearly the need for the board to seek
out and articulate differences.
Secondly, this commitment needs to
be reinforced by aligning key board processes such as selection, induction and
board/directors evaluation processes. In a general sense these processes need to
ensure that the application of intelligent naivety is rewarded rather than
punished. The type of periodic governance training or professional development
undertaken by many boards should reinforce these processes.
Thirdly,
consider the use of particular techniques that can assist reflective and
critical thinking and amplify the voice of intelligent naivety. For example:
-
adopt systematic processes that offer different ways of looking at things and
use techniques that enable individuals to put forward their ideas in a neutral
or an anonymous manner - for example, brainstorming (the process of posing
questions or generating ideas without any evaluation during the creative
process);
-
assign the role of devil's advocate or 'critical evaluator' - invite that role
holder to say the un-sayable and ask the un-askable;
invite the board as a whole to consider unpopular alternatives
-
plan board meetings so that there is enough time to seek out and explore
different ways of seeing things;
-
deliberately delay important decisions until they have been thoroughly
examined.
To ensure that the potential of intelligent naivety is realised the role of the
chair is particularly important. The chair be must consistently encourage an
atmosphere of open inquiry. In the way the chair speaks he or she should
demonstrate that they value intelligently naïve questions and see them as a
fertile opportunity to explore new angles. The chair must be impartial and
constantly alert for opportunities to encourage individuals to give voice to
their intelligently naïve questions and to support them when they do. If
questions are being negated because, for example, they query established basic
assumptions, the chair should intervene to ensure the question is heard and
addressed. As the board's discussion leader the chair should give high priority
to drawing out objections and doubts, and be accepting of questions that might
imply criticism. Old-fashioned humility is a major ingredient in effective board
leadership.
Besides insisting that the open and honest sharing of
ideas is an essential part of a healthy board culture the chair can assist by
not stating their own analysis or personal preferences at the outset of a board
discussion. This can easily have the effect of discouraging other directors
from raising questions that may go against those views.
Valuing the
role of intelligent naivety is to recognise that no individual or group is
infallible. As someone once said, 'the only dumb question is the one you wanted
to ask but didn't'.
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