Navigating uncertainty: Some governance insights from our annual Directors' Day
In an era filled with uncertainty and complex challenges, the pressing question for today’s board members is clear: how do we, as directors, remain decisive in such a turbulent environment? This central theme served as the focal point for our Annual Directors' Day, providing a platform to explore critical governance issues such as:
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How can we ask the right questions at the boardroom table?
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How can we ensure that we have the right people around the table?
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How can our stakeholders support us in driving necessary changes?
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How can we anticipate the myriad challenges ahead?
These are just a few of the many questions modern boardrooms are confronted with, and the emphasis of the event was on providing practical answers and guidance to them. Through keynote speeches, panel discussions, and case studies, participants left equipped with tangible insights and tools to better navigate turbulent times.
Unknown Unknowns
Prof. Dr. Konstantinos Sergakis, GUBERNA’s new Knowledge & Research Director, opened the event with a thought-provoking discussion on "unknown unknowns." He posed a critical challenge for boards: how do you manage the unimaginable—events or risks that you cannot foresee, or may not even know exist?
Sergakis stressed the need for a highly flexible mindset and an unrelenting focus on the visionary role of the board, scenario thinking, and risk management. To thrive in such uncertain times, directors must blend visionary ambition with ethical leadership, humility, and a readiness for constant transformation. These skills are not optional, but essential for governance in an unpredictable world.
“Governance is the acceptance of responsibility rather than the assumption of power,” Sergakis noted, citing Mark Carney, emphasizing that responsible governance is grounded in adaptability and foresight.
Managing ignorance
A constant concern for any board, especially in times of turbulence, is how to manage what you do not know—what Baron Herman Daems referred to as "the management of ignorance." Anne Leclercq emphasized that all relevant business information must be well-structured and continuously managed to ensure that boards can make informed decisions.
A robust framework, adaptable to changing information needs, is critical. While such a framework may not prevent crises, it can help boards integrate lessons learned and prepare for future challenges.
Governance in state-owned enterprises
The governance structure of VRT, the public broadcasting service, provided a unique case study in managing strategic interactions between a board and its CEO. With oversight from the Flemish government, VRT’s board operates within a framework that balances political appointments with independent governance.
VRT’s CEO Frederik Delaplace shared his appreciation for the constructive interaction between management and the board, emphasizing the value of regularly scheduled strategic discussions. The recent decision to add four independent directors to the politically appointed board is expected to bring fresh perspectives, reinforcing that governance is an evolving practice that requires continuous renewal in both composition and approach.
On a strategic level, VRT has had to radically restructure in response to changes in viewer behavior, investing heavily in an online platform. The company’s governance case remains a fascinating work in progress, with many more lessons to be drawn as soon the new board and the new poltical “management agreement” will take shape.
Digital Governance Systems: A Must-Have
Muriel De Lathouwer highlighted the increasing importance of digital governance systems. She stressed that boards must invest in secure, efficient digital platforms to access and manage information. A well-organized digital system boosts productivity by providing immediate access to documents, searchable records, and notification systems that allow directors to stay informed and prepared for decision-making.
“Investing in governance information management is no longer optional,” she concluded.
Leadership dilemmas in turbulent times
Professor Katleen De Stobbeleir from Vlerick Business School brought a fresh perspective on leadership in times of turbulence. Her research framed three key dilemmas for boards, urging directors to rethink traditional assumptions:
1. Speed Dilemma: Fast vs. Slow: Urgent issues do not always require immediate decisions. In fact, De Stobbeleir argued that in turbulent times, taking the time to make thoughtful, deliberate choices often proves more effective than rushing into action.
2. Achievement Dilemma: Experiment vs. Perform: Boards must embrace continuous learning and be willing to unlearn outdated processes. De Stobbeleir encouraged directors to engage in “unlearning” by fostering curiosity and integrity, ensuring that decisions are based on what is right, not who is right.
3. Confidence Dilemma: Confident vs. Open: Overconfidence in a single strategy can blind boards to new ideas and alternative solutions. Directors should maintain openness to challenges and ensure the conditions are met for robust debate and strategic flexibility.
Three key quotes encapsulated her message:
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“The more reflective, the more effective.”
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“Pecking orders care about who is right. Winning cultures care about what is right.”
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“Your vision should be a warm blanket, not a straitjacket.”
Leiderschap in moeilijke tijden
The closing debate between Wout Van Impe, Team Director at MU, and Jean-Louis De Cartier, Chair of Brepols Group, provided a masterclass in effective leadership during challenging times. These two seasoned governance experts, each with a vastly different background and experience, delved into leadership and governance during difficult times. Their spirited dialogue, drawn from real-life experiences, offered a number of key takeaways for directors:
- Stay Focused Under Pressure: In times of crisis, board members must avoid panicking and getting lost in details. Instead, they should focus on the essence of the issue, sometimes requiring rapid decisions but always grounded in the bigger picture. Unfortunately, few directors are skilled at distilling complex situations into their essential elements.
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Context Matters in Leadership: Good leadership is always context-dependent. This makes the selection procedures that a new CEO or board member should follow a rigorous, methodical process rather than relying on gut feelings or quick assessments. In selection, a casual conversation is no longer sufficient.
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Balancing Action with Dialogue: A strong chairperson needs more than intellectual ability; they must also have a genuine drive to achieve and the decisiveness to act. However, in certain situations, too much decisiveness can stifle dialogue, which is crucial for sound decision-making.
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The Turbulent Times Demand Higher Standards: We've been living in a so-called turbulent period for quite some time, which means we need to raise the bar and approach our decisions more consciously. The guiding principle is to ask powerful questions: "Be more interested than interesting."
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The Art of Decision-Making: Good decision-making is never simple. Which decisions should be made quickly, and which require more time? How do you determine when you have enough information to make the right call? And who should be involved in these discussions, and at what point? The ability to synthesize complex issues into clear, concise summaries is crucial for effective governance. Without clarity, meaningful decision-making becomes impossible.
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Creating an Open Environment: Many directors are hesitant to voice what they truly think. It’s the chairperson's responsibility to foster an open climate, ensuring that the full collective intelligence of the board can emerge. It's important to remember that ultimately, it is not diversity alone that improves governance, but inclusive leadership that brings collective intelligence to the forefront.
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The Importance of Regular Evaluations: Both formal and informal evaluations are critical. Boards must consistently ensure that they have an effective team dynamic.
In conclusion, the final debate underscored the complexity of leadership in turbulent times and reinforced the importance of methodical selection, open dialogue, and structured decision-making processes to navigate these challenges effectively.
Take a look at the speakers' takeaways from the event
Three last lessons
In her final remarks, Lifelong Learning Director Saartje Verbeke shared her three personal governance lessons:
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Stability: Sound structures and processes make boards more resilient during crises.
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Agility: Directors must remain flexible while maintaining an open mindset and engaging with all stakeholders.
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Knowledge Sharing: Seeking advice and exchanging experiences enhances decision-making.
Our event made it clear: navigating turbulent times requires board members to embrace a unique and difficult combination of agility, openness, and resilience, with a steadfast commitment to effective governance practices.
