The Better Boards Podcast Series

Send us a textWhat does good look like? What does it mean to lead an effective board? These are probably two of the questions I most often hear. In our board evaluations, we see vast differences in how Chairs and boards perform.In this podcast, I, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses leading an effective board with Andreas E.F. Utermann. Andreas was appointed Chairman of the Board of Directors of Vontobel Holding AG in 2022. Previously, he led Allianz Global Investors. Beginning in 2012, he initially served as a co-head and Global Chief Investment Officer. In 2016, he became the CEO, a position he held for multiple years before transitioning into an advisory role, philanthropic, and external board work."The transition is greatly helped if you feel you've done what you need to do and what you thought you wanted to do as an executive"While some executives struggle to move over to board work, Andreas feels the transition is much easier if you feel you've both done what you needed and wanted to do as an executive. "Getting transparent, honest feedback individually is super, super helpful for personal development. It's also really helpful for group dynamics" On many boards, regular performance evaluations are still uncommon or held for later in a board member's tenure. Yet Andreas feels getting those conversations going right away is critically important for good governance, board futureproofing, and overall board effectiveness. So, as soon as he joined the Vontobel board, he helped initiate Board Evaluations in partnership with Better Boards. "If you want to be successful, you need to be a contrarian"Andreas is aware this approach to board evaluations is a little contrarian. This is intentional. Andreas credits his training as an investment professional and his upbringing by his parents for giving him the instinct to avoid groupthink and work opposite to the crowd. To him, if you want to beat the market and be truly successful, your best bet is to do something different."Good chairs need to have a high EQ"Being effective as a board chair these days requires a high EQ. Andreas notes that modern boards tend to be quite diverse, with strong personalities to manage. Along with this, Andreas feels good chairs must help create safe spaces for high-quality conversations. "The sequencing of board meetings is a significant part of a successful board meeting"Before each board meeting, Andreas asks his assistant to block time so that he can reflect on the key topics that need to be addressed. Then, he works to organize the board meeting so that the most intellectually complex and emotionally intense conversations happen early in the day or first thing in the meeting. "Keep admin stuff to a minimum"Another unique practice Andreas uses to keep his board meetings impactful is minimizing the administrative aspects. He feels board meetings should be focused on strategic discussion. So, Andreas uses a pre-meeting call to cover administrative details before physical meetings. The three top takeaways from our conversation for effective boards are:1.     Be courageous. If you fail at first, try again, and keep looking at life as a learning experience.2.    Be honesIf you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textA crucial yet often overlooked aspect of board effectiveness: stories. Imagine a world where numbers and strategies come alive, painting a vivid picture of your company's future. When it comes to decision-making and leadership, how can compelling narratives inspire your board and drive tangible results? The ancient art of storytelling can be your modern tool for boardroom success.In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses the importance of stories with Jyoti Guptara, who excels in helping leaders align narratives with corporate culture, fostering an environment where stories become a driving force for organizational identity and strategic direction.   "We really want to tell a story that can connect people, tell them what we're all about, and invite people to join us on that journey"Why do many mission statements fail to change behaviour? Why do most change efforts fail? Jyoti says that when these strategic communications are abstract, they don’t connect with people. An important lesson for businesses and leaders is to tell a good story that helps transform abstract ideas, strategies, and mission statements into something graspable and tangible. "The larger the organisation gets, the more important the story becomes"Jyoti says companies are struggling to convince people why they should care. This is true even at companies that have a fantastic mission and story. They are struggling to tell a compelling story, and this directly links to the issues that many firms are facing with employee engagement and community building. Storytelling helps create clarity around the mission and work of the company. It also creates the space for community connection and for building a powerful community around a shared mission and values. "There are different stories for different contexts"To Jyoti, telling a good story comes down to telling the right story to the right people at the right time in the right way. This requires narrative intelligence, a skill that can be learned and honed with practice. Jyoti recommends thinking about where you're telling a story and why: your goal with the story. Different contexts require different stories. He says one basic principle he's found helpful is to think about story sizes. Some situations have space for a five or 10-minute-sized story. In other situations, you've only got 60 seconds. "Boards that do get storytelling right can be a lot more effective"To Jyoti, it's dangerous for boards to overlook storytelling. Board effectiveness improves when storytelling is in play, and good stories can also help with board development and governance issues. On an individual level, having a good story can influence who is brought onto the board and who stays on the board. So, to Jyoti, people need to develop strong personal narratives that showcase their experience and expertise. Once a part of a board, the individual stories can help unite the group and build cohesion as everyone gets to know and appreciate each other. This is especially important in board situations where you are trying to bring together a group with diverse backgrounds and perspectives and meld that group into an effective unit.The three top takeaways for effective boards are:1.       People are not rational. Our default mode is to be emotional and rationalise after the fact. Remember this, and try to appeal to the whole brain by using storiesIf you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textExecutive pay attracts attention and scrutiny as companies and society at large face the challenges of rising prices and interest rates. It is a true challenge to strike the right balance between executives and stakeholders. The big question is: How can companies strike the right balance?In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards www.better-boards.com, discusses executive compensation with Paul Norris, Senior Partner of MM&K Limited. Paul has over 35 years' of experience in executive compensation and advising on remuneration structures, policy, performance, and governance. "There's no doubt the role of remuneration committees and remuneration committee chairs has become more demanding" Paul sees remuneration committees (RemCos) facing more demanding and more complex challenges than in the past. Why? It comes down to four key challenges. First, there's a much broader range of interests and objectives from a larger group of stakeholders to manage than ever before. Second, RemCos must pay attention to official regulatory groups and unregulated proxy agents nationally and internationally. Third, management succession planning is becoming more important. Paul sees a lot of scope and a good argument for mixing and blending the work of the nomination and remuneration committees. He feels this collaboration can bolster diversity and inclusion at the board and executive levels. Fourth, there's the challenge of solving the pay-for-performance equation. "What works well is being visible" With so many stakeholders and interested parties to satisfy, Paul says the role of the remuneration committee is expanding. To fulfill that role successfully, he feels communication is key.  Good communication between the committee, HR, and the CEO and targeted communication with stakeholder groups."Don't report what you'd like to do, report what you have done"Paul says what shareholders are looking for is clear reporting of actual results.  Clear disclosure opens the door for feedback from stakeholders, shareholders, and regulators, both in the public sphere and internally. Getting this feedback is vital for effective governance and compliance, too."There's a much, much greater use of ESG performance targets"One trend Paul sees globally is linking ESG targets with executive incentives on a much broader scale than before. It's not just a trend in the regulation, though that's a part of it, but there's also great pressure from investors. Controlling the company story and crafting a consistent narrative is key. You want to tell a story both stakeholders and regulators can understand and be able to match your story to demonstrate progress against targets. "The money's got to come from somewhere"Paul says there has to be a balance between financial and non-financial performance targets in incentive plans. He feels that there will continue to be a rising use of blended performance scorecards, where most incentive payments will be based on financial performance measures, and the balance will be made up of strategic and perhaps ESG measures. This ensures that companies can continue to thrive financially, as the money for pay packages must come from somewhere! The three top takeaways from our conversation are:1.     Don't be afraid to ask the right questions. They may be difficult questions, and If you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Paul Halpin, a successful Non-Executive Director, shares his journey from corporate to entrepreneurship, emphasizing independence on boards, embracing cultural diversity in board meetings, and highlighting effective director characteristics. His inspiring life showcases the importance of dreaming big and making conscious decisions in business and boardroom success.

Send us a textOne of the most frequently asked questions to Better Boards is “What does it take to be an effective Non-Executive Director?”  This podcast will shed some light on the topic.In this podcast, Dr. Sabine Dembkowski, Founder and Managing Director of Better Boards, discusses how to be an effective Non-Executive Director with Marianne Loner. Marianne spent 35 years in an executive career in investment banking, commercial lending, and asset management in London, New York, Chicago, and Zurich with global organizations.  For the past 12 years, she has served on Boards in Latin America, the Caribbean, and Europe.“Time flies when you are having fun!”Marianne takes her work on boards very seriously but says there’s no doubt that after a long and successful executive career, it has been very enjoyable to bring her expertise to the companies she serves. She chooses to focus on emerging markets so that she can quickly make a visible difference with ESG and economic development in multiple countries.“If you’re in one industry, you end up having very strong content” Marianne says that while she works all around the world, by keeping her focus on one industry – financial services – she is able to be more effective. She can come into a company with a deep understanding of the regulatory frameworks, the competitive environment, and how firms can make the changes needed to innovate and be truly client-focused.“No one country has a monopoly on best practices”Marianne explains that governance and best practices can be very different between countries, which board members who stay in one region or country miss out on experiencing. Thanks to her global focus, she is able to make connections and see how different policies play out in different cultural and economic environments. This gives her a unique perspective.“Have a clear idea of what you bring to the party”To be an effective Non-Executive Director, Marianne feels that board members should have a clear picture of what they’re bringing to the role. How are you being expected to contribute? What role do you play in the dynamics of the board, in the decision-making, and in the company culture? Marianne recommends new Non-Executive Directors spend time actively listening and gaining an understanding of the company so that they can develop an effective personal strategy for influencing and shaping decisions, strategies, and tactics. “I read the entire pack, even footnotes!”Board effectiveness depends on adequate preparation. Marianne has seen boards where members are not reading all the materials being provided, which she feels places them at a disadvantage in their contribution. For her, to be an effective contributor, it is vital to read every part of board packets, with a special focus on matters arising. “Hindsight is important for tackling issues that are still unresolved”Marianne knows that the mandate for board members is to provide insight, oversight, and foresight. However, when issues aren’t resolved, hindsight can be useful, provided that the whole board meeting isn’t consumed by hindsight. The three top takeaways from our conversation for effective boards are:1.      You cannot operate in a vacuum. To be effective, spend the time to build relationships with other board members and management.2.    Silence does not serve the businIf you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textThe Board as a Team may be a surprising topic. Are Boards of Directors individuals in a group or a Team? If the Board is a team, who is on the team - the Execs, the Non-Executives, or both? The academic literature and practitioners are ambiguous about whether a Board is a team or not.In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses the concept of the Board as a team with Petri Hofste. Petri was for several years the No. 1 NED in the Netherlands (according to the independent analysis annually conducted by Management Scope). After a successful career as a CFO, she embarked on a portfolio career. She serves on leading organisations in the Netherlands. For her, it is vital that the Board is a team."A diverse Board means that in order to make it work, you have to work harder""The starting point is truly being interested in each other, as well as in the task at hand""Ensure that you focus on the right issues, and also ensure that you do not focus and do not discuss what doesn't need to be discussed""It generally works best if company secretaries really ensure to team up with the chairs""If you do not like being on a Board. If you do not feel connected to the other people on the Boards, how can you bring the best in yourself to that Board?"The three top takeaways for effective Boards from our conversation are:1.      A Board needs to invest in being a team. 2.     Understanding where people come from and bringing forward the strengths of every individual as well as the strengths of the team is worthwhile. This investment needs to be on the personal and organisational levels. 3.     Board members owe the companies they serve and society to bring the best out of each individual on a Board.If you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a text When LGBT+ employees feel their employers aren't doing enough to support LGBT+ inclusion, many are prepared to look elsewhere for organisations that do. This is one of the many stark findings from Deloitte's recently released 2023 LGBT+ Inclusion @ Work report, which explores the experiences of more than 5,400 respondents across 13 countries through the lens of both sexual orientation and gender identity.  The survey findings reinforce that when organisations foster diversity and demonstrate a commitment to LGBT+ inclusion, it can positively impact the lives and experiences of all employees in the workplace.   This is why boards need to recognise the importance of inclusion and move beyond lip service to ensure companies have the necessary strategies to ensure their organisations cultivate environments where LGBT+ employees and all employees can thrive. In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards,  discusses the 2023 LGBT+ Inclusion @ Work report and why boards need to prioritise LGBT+ inclusion with Emma Codd, Global Chief Diversity, Equity and Inclusion Officer for the professional services firm Deloitte.   Emma leads the firm's strategy on gender balance, LGBT+ inclusion, mental health, disability inclusion, neurodiversity, and the development and delivery of thought leadership aligned to this strategy, including the annual 'Women@Work – a Global Outlook' report. In 2021 Emma was awarded Honorary Membership by the UK's ICAEW for her work championing diversity and inclusion of women Key statements"LGBT+ inclusion and the willingness for people to be out in the workplace is a barometer for other aspects of inclusion""The survey shows us how important it is to LGBT+ people that their workplace is inclusive for them""If they are their true selves in the workplace, they're worried they'll be discriminated against, that they'll be harassed, they'll be disrespected, but then they're also worried about their personal safety""The importance of LGBT+ inclusion in the workplace is more important, according to this data, for Generation Z and millennials""One in 10 of respondents that experienced these non-inclusive behaviours said that they were exposed to physical aggression""Do you know how many of your employees actually are willing to give you their personal data in the first place?"The three top takeaways for effective boards from our conversation are:1.      This is important to your business.2.     For one day try not referring to your partner by their pronouns to see just how difficult that could be for somebody who cannot be out at work, and therefore the impact on their performance.3.     Understand that culture is everything, and doesn't just impact LGBT+ inclusion. It impacts everything - and boards have a responsibility here. Try and understand how your people are feeling, what they are experiencing, non-inclusive behaviours, and what needs to happen to deal with them properly.If you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textSo much of the global discussion of corporate governance focuses on the major themes – ESG, sustainability, stakeholder rights, executive pay, and government regulation. Yet corporate board members on the boardroom front lines often wrestle with basic but crucial issues of "boardsmanship." How do the well-meaning, part-time amateurs on a board meaningfully direct and monitor a complex business operated by full-time professional managers? Are we demanding more tactical oversight from boards than they can realistically deliver? Has the "Board of Directors" model become a dangerous anachronism?In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses governance with Ralph Ward, who is an internationally recognized speaker, writer, and advisor on the role of boards of Directors and the future of governance worldwide. He is publisher of the online newsletter Boardroom INSIDER, the worldwide source for practical, first-hand advice on better boards and Directors, and he also edits The Corporate Board magazine. He is the author of six books on boards and governance.Key statements·        "The corporate board model is the worst way of monitoring a large enterprise, except for everything else we have tried"·        "Small adjustments can yield significant improvements"·        "Work with the company secretary and their staff, who are the ghosts in the machine"·        "One of the leakiest areas for online security and data theft are the outside board members; they're a loose cannon"·        "Intelligent, savvy people know what they're doing, but the Board of Directors model collectively makes them dumb. It makes it difficult for them to come in, hit the bricks running, and know what to ask"·        "There is very little training on how to be an effective board member and there is almost none on how to be an effective board leader, a Chair - and that's very dangerous"The three top takeaways from our conversation are:1.      Being on a board is not the ultimate feather in the career cap. Check whether you know what you're really getting into and are ready to take on the commitment, liability, and regulatory dangers (especially for a major public company).  2.     Ensure you have the time to commit. People at the corporate level on a Board of Directors are good time managers, yet they always underestimate the time and effort involved in taking on a board role. Take whatever seems like a reasonable amount of time - and double it.3.     Keep communication. Please do not leave the board meeting and not think about it until you get ready for the next board meeting. Assume once you're on a board, it's one more job you'll have to weave into your busy schedule.Please contact sabine.dembkowski@better-boards.com for a copy of the full-text blogIf you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textThe boardroom is a desirable place, and after a successful Executive career, many wish to embark on a portfolio career and serve on boards. What does it take to make it in the boardroom? In this podcast, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, discusses making it in the boardroom with Imran Saleem. Imran is a Partner with Egon Zehnder in the Middle East and the Office Leader in Dubai. "It depends on either the experience or the wisdom that they bring to the table"Imran explains that Egon Zehnder places individuals on boards globally according to client needs. Their selection process focuses on two groups. The first group consists of individuals with specific qualifications or high-in-demand characteristics. Individual experiences and wisdom characterise the second group of people. Imran explains how individuals with relevant experiences as CEOs or CFOs bring a lot of credibility to boards with their strong financial acumen, understanding of risk, and broader strategic knowledge. They are well-suited for roles such as Audit or Risk Committee Chair. "The process of narrowing down candidates from a long list to a shortlist isn't always driven by logic" In his 16 years with Egon Zehnder, Imran has learned that various factors influence decisions when narrowing down a long list of candidates. It is not always logical and can include factors such as the candidate's representation on paper, clients' perceptions and feelings towards a particular company, and their understanding of its operations. Imran believes it is an art form. Individuals are included on the long list because there is faith in their potential to deliver. Egon Zehnder is responsible for advocating for them to make it to the shortlist."They need to help the management look around corners."Imran points out that different boards may have different success factors and requirements based on whether they are a family board or publicly listed. However, he believes that incoming board members need to develop a reputation for asking good questions. Effective board members should look for ways to help the company avoid traps and anticipate challenges. They should encourage management to think big and be ambitious. They should not provide all the answers but offer guidance and allow management to develop their solutions. "The demand for good board members is extremely high"Imran explains that they often look for board members from FTSE and DAX, but it is not just about where the companies are listed but also how they operate. For boards in the Middle East, board members from global companies with experience in emerging markets and different geographies are most sought after."Companies should not hire a board director when a consultant or advisor can fulfil the role"Imran outlines the Egon Zehnder view that companies should not hire a board director when a consultant or advisor can fulfil the role. Specialist insights can be obtained through advisors, managers, or by creating an advisory board, and the main board should consist of individuals who can contribute to a wide range of topics rather than being focused on a specific area. The three top takeaways for effective boards are:1.      Make sure you practice good judgment. Good judgment always comes into play whether a board is looking for a board member or aspiring to be board member. 2.    If you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.

Send us a textThe landscape of employee relations is changing, particularly in office environments with flexible working. There are many different opinions about how organisations should approach their policies while representing their employees' diversity. The subject of employee engagement sounds simple, but is it?In this podcast, Dr Sabine Dembkowski, Managing Partner of Better Boards, discusses employee engagement with Louise Hardy and Kevin Maguire.  Louise is Non-Executive Director at FTSE 250 company Crest Nicholson, where Kevin Maguire is General Counsel & Company Secretary.“There really is nothing like sitting in a room with people”Louise opens by saying that boards get a lot of data-driven, paper-based information about how employees are feeling and thinking, from surveys for example.  But nothing beats having these conversations face-to-face to tease out critical issues.  Kevin points out that employees are key stakeholders in a board's deliberations, and there is more than one method of employee engagement that satisfies the corporate governance code.  They have both found that a designated Non-Executive Director approach with employee meetings is the best for board effectiveness.“Don't manipulate who attends”Louise explains that at Crest they have established visits to all regions, business units, and head office, aiming to engage with a diverse range of employees. In her view, it is crucial to include representatives from different departments, workgroups, and stages of their careers to enrich discussions.  "The more you get people to open up, the more others will open up”Louise outlines the “house rules”, which are seldom altered.  She initiates each meeting by emphasising the freedom to express oneself and explains they are conducting a comprehensive review to identify common concerns.  These collective issues are what will be presented to the executive team and the board.  A significant part of the process is the atmosphere in the room, and she aims to foster an environment that naturally helps people to be comfortable and speak up.  “Treat the employee engagement subject like a board committee”Kevin explains how the role of the Company Secretary can differ from one organisation to another, but as Company Secretary at Crest he plays a crucial role in ensuring corporate governance and code compliance, and that the chosen engagement method meets these obligations.  Company Secretaries can also provide additional input and guidance as needed, as their role extends to sequencing the outcomes of these meetings into boardroom discussions and the boardroom agenda.  “Information is just information, you do need to do something with it”Louise explains how she and the HR Director have established a reporting structure.  They conduct 3-4 meetings annually, covering all regions twice, for a total of 8-9 meetings.  During these, they identify the main topics. After the sessions, they both review all the issues and identify the top 5 or 6, which are usually the most significant. These key issues, along with recommended actions, are presented at the board meeting.   The three top takeaways for effective boards are:1.      Do not put off getting started because it is so beneficial and really worth the time and effort.2.     It becomes easier if you start small and then build up from there, so you will quickly find a If you would like to become part of the Better Boards community, learn about our distinctive approach and explore opportunities to work with us or contribute to The Better Boards podcast series, get in touch at info@better-boards.com. We love to hear from you.