What does it mean to be a company director? When we think about directorships it’s all too easy to list rules and regulations, governmental legislation and boardroom procedures; but if that was all there was to being a company director then organisations would be sterile indeed.
The fact is that company directorships are as much about setting the culture and tone of an organisation as they are about following legislative rules. The best directors know that the course that they steer for their business is as much about behaviour as it is about directive. So whilst the 2013 Quoted Companies Alliance (QCA) code talks about areas such as vision, risk management and processes, the unspoken assumption is that these will be delivered by directors who exhibit strong personal qualities in their daily lives.
So what are some of the key behavioural skills which turn directors into leaders? We’ll skip quickly past areas such as honesty and probity because if directors don’t have those qualities then they have no place in business. Instead let’s look at one of the key traits of exceptional leaders, the ability to live the values which they espouse within their organisation.
As an example, let’s look at an organisation which promotes strong customer service and customer care as one of its key values. This may translate within the business as putting the customer first or giving time and value to the customer experience. But if board members demand that their own needs come first, that the provision of a report takes higher priority than solving a customer query or that employees should be rewarded purely based on sales rather than customer satisfaction then they are sending out an entirely negative message to the business.
Similarly, if the organisation looks to deliver a caring and personal service but the directors shut themselves away, are abrupt in their demands to employees and look to cut corners to increase profit; then again they should not be surprised if those tasked with interacting with customers deliver a less than ideal service.
Company directors are far more than people who interpret legislation and devise future strategy and corporate governance is far more than simply following a process. The QCA code aims to deliver growth in long-term shareholder value and maintain a flexible efficient and effective management framework within an entrepreneurial environment. None of this will happen unless the directors bring strong personal qualities and behaviours to the table, leading by example and promoting good practice across the business. If you would like to find out more about company directorships and governance feel free to browse our website www.elementalcosec.com or contact Nick on [email protected].
