Resilient boards adapt to new scenarios. They encourage candid debates and discussions and strive to align interests (read more: The Third Wave of Governance). The openness to speak-up and the curiosity to listen foster high-level problem-solving. Collegiality, instead of dominance, is the norm. This allows room to handle conflicts of interests effectively, moving beyond individualism and towards co-creation and sustainable entrepreneurship.
A resilient board proactively looks for opportunities to take action. Agility, or the ability to move quickly and easily, is needed to act before a critical event occurs. As a result, working preventatively can reduce possible damage and increase business opportunity. For example, focusing on sustainability today will have a positive impact on companies and their communities in the future. This long-term perspective lies at the heart of what it means to be resilient.
To conclude, good governance and resilience are highly intertwined. Dealing with crisis situations effectively requires good governance and agility in business. For example, responding to operational pressures by digitalising services is a sign of good and resilient governance. Companies that innovate tend to be more resilient over time, inventing creative solutions to tomorrow’s challenges. In the same way, defining the roles of key players such as the Board Chair and clarifying procedures are good governance practices that allow boards to be more resilient. Good governance and resilience work hand in hand.
The right moment to implement good governance, is the moment you start thinking about it.
Together with its partner CKV, GUBERNA conducts research on the topic of resilience and governance. In addition, GUBERNA organises ‘Sounding Boards’ (starting in the autumn/winter 2020) to help SME’s that are in a refinancing programme with CKV, set up a resilient advisory board.