ABSTRACT
How do effective directors ensure the quality of interpersonal interactions between the board members stay high?
Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to soft governance.
All directors should ensure there is awareness of the dynamics of the board. A director’s background, experience, expertise, and exposure are the sources of their identity on the board, characterised here as board capital. Each non-executive director uses an informal and subjective ranking of board capital as an internalised guide to their “place” in the group.
The chapter considers the key to board effectiveness and impact, the dilemmas of soft governance, board capital as the source of a director’s influence, and the power hierarchy and its self-regulating character. It clarifies the critical role of director propensities and the role of the chair and offers a typology of culture types.
The chapter’s introduction leads into outlining the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the Board.
