64. Baroness Dambisa Moyo - Boardroom surprises: black swans, dual-track strategising and marketing yourself as an unconventional board member
Apr 3, 2024
auto_awesome
Baroness Dambisa Moyo, a board member for Chevron and Conde Nast and a New York Times bestselling author, shares her insights on boardroom dynamics with Nurole CEO Oliver Cummings. She discusses the challenges of uncertainty in governance and how effective boards adapt to risks. Moyo emphasizes the importance of diverse backgrounds in board roles and introduces her dual-track approach to strategy. She also reflects on lessons learned from rapid CEO turnovers and the importance of ethical leadership during tumultuous times.
Baroness Dambisa Moyo emphasizes the importance of boards remaining adaptable and prepared for unexpected challenges that disrupt strategic direction and decision-making.
She advocates for the creation of dedicated ethics committees within boards to proactively address ethical standards and mitigate risks associated with ethical violations.
Deep dives
Navigating Surprises in the Boardroom
Surprises are a significant challenge in the boardroom, affecting both decision-making and organizational stability. Dr. Dambisa Mayo highlights that various unexpected events, such as a CEO's death or broader crises like the pandemic, can disrupt financial forecasts and test the organization's culture. For example, during the early days of the COVID-19 pandemic, companies faced urgent questions about employee health, revenue expectations, and operational capabilities. Such surprises emphasize the need for boards to remain adaptable and prepared for unforeseen challenges that can alter their strategic landscape.
Understanding Uncertainty and Risk
The distinction between risk and uncertainty is crucial for effective board governance, as articulated by Dr. Mayo. While risks can be anticipated and managed to some extent, uncertainties often arise unexpectedly, making accurate predictions difficult. Dr. Mayo recounts her insights during the pandemic when organizations lacked visibility on how to operate with employees working from home. This emphasizes the importance of having a board that acknowledges and prepares for unpredictable changes in the business environment.
The Role of Ethics in Board Governance
Dr. Mayo advocates for the establishment of dedicated ethics committees within boards to effectively address ethical challenges that arise in today's corporate landscape. She argues that as instances of ethical violations have become more common, it is essential for boards to scrutinize the ethical implications of their decisions rigorously. Rather than addressing ethics in a reactive manner during crises, boards should proactively evaluate candidates' ethical stances and create an ongoing culture of ethical governance. This approach could help mitigate the risks associated with ethical lapses that have historically impacted many organizations.
Importance of Open-Mindedness
Dr. Mayo emphasizes the necessity of open-mindedness in the boardroom, urging members to shed rigid ideologies that can stifle innovative thinking. She warns that boards with members who come in with preconceived notions about the business may miss valuable insights and opportunities for growth. Instead, board members should actively listen and engage with diverse perspectives, particularly when entering different cultural contexts or markets. This adaptability can lead to richer discussions and more informed decision-making, ultimately fostering a more effective governance environment.
Baroness Dambisa Moyo is a current board member of Chevron and Conde Nast, investment committee member of the Oxford University Endowment, and co-principal of Versaca Investments. Join her and Nurole CEO Oliver Cummings in a conversation which covers: Which of your boardroom experiences have been the most challenging? (1:44) How do the best boards deal with uncertainty and risk? (4:31): How do you think about the Risk Committee? (12:43) What do you know now which you wish you’d known when you first entered the boardroom? (14:32) How aligned are board members on the role of the board? (16:28) What have you learnt about adding value across strategy, CEO succession and culture, which might not be intuitive to an experienced executive? (20:02) How can people from non-conventional backgrounds best position themselves for board roles? (22:06) Should boards have strategy and audit sub-committees? (24:57) What is your dual-tracked approach to strategy? (29:35) You once had four CEOs in six years - what did you learn? (34:13) What is the remit of ethics committees? (36:48) And ⚡The Lightning Round ⚡ (40:43)