The Role of the Governance Professional in Influencing the Board Flashcards
THE 21ST CENTURY GOVERNANCE PROFESSIONAL
A company secretary provides effective support for the chair through what?
What are 5 personal qualities that a company secretary must bring to the table to help them excel in their role in this way?
A company secretary needs to have similar qualities to who?
through deep understanding of issues of boardroom dynamics and the interpersonal skills necessary to be the trusted adviser of all in the boardroom
2014 ICSA report on ‘The role of the company secretary’ suggests:
(1) supportive
(2) facilitative
(3) integrative
(4) operates organisationally, emotionally, and intellectually
(5) courage to speak out
The chair
THE COMPANY SECRETARY AS STRATEGIC LEADER - LEADERSHIP AND MANAGEMENT
In the 2014 ICSA company secretary report’s key findings, the number one finding was that the cosec role delivers what?
What is the distinction between management and leadership according to Kotter?
What is the distinction between management and leadership according to Mintzberg?
delivers strategic leadership, acting as a vital bridge between the executive management and the board and facilitating the delivery of organisational objectives
Kotter:
Management = more about creating order and doing things right = takes a short-term, tactical view, and asks ‘how’ and ‘when’
Leadership = more about producing change and doing the right thing = more of a long-term view and asks ‘what’ and ‘why’
Mintzberg:
the difference is illusionary = people are constantly required to flex their role from moment to moment across different activities
THE COMPANY SECRETARY AS STRATEGIC LEADER - LEADERSHIP AND MANAGEMENT
What are the 10 managerial roles across 3 categories that Mintzberg identifies senior
people flex between over the course of any given day?
Category one: Informational
1. Monitor = seek and receive information (scan papers and reports)
2. Disseminate = forward information to others (send memos / make phone calls)
3. Spokesperson = represent the unit to outsiders in speeches and reports
Category two: Interpersonal
4. Figurehead = perform ceremonial ends and symbolic duties (receive visitors)
5. Leader = direct and motivate subordinates (train, advise and influence)
6. Liaison = maintain information
Category three: Decisional
7. Entrepreneur = initiate new projects
8. Disturbance handler = take corrective action
9. Resource allocator = decide who gets resources (schedule, budget, set priorities)
10. Negotiator = represent department during negotiations with stakeholders and generally defend interests
THE COMPANY SECRETARY AS STRATEGIC LEADER - EVOLUTION OF LEADERSHIP THEORY
What is the concept of the ‘Great Man’?
What is transactional leadership?
In the 1990s this was replaced by transformational leadership. What is this?
How does the 2016 Henley Business School research report summarise the shift in leadership?
Great Man = roots in military leadership = the idea that leaders are born and not made
Transactional leadership (1970s) = it is possible to influence followers through the transactions of reward or punishment
Transformational leadership = emphasises the need for charismatic leaders to inspire others to do great deeds through communicating a clear vision
HBS 2016 = from heroic leadership to collective and collaborative leadership, driven by purpose and value creation for all stakeholders
THE COMPANY SECRETARY AS STRATEGIC LEADER - LEADERSHIP STYLES
What are Goleman’s 6 leadership styles?
Which 2 are the 2 styles that outperform the others?
- DIRECTIVE = getting immediate compliance by giving lots of directives, controlling tightly, relying on corrective feedback, and motivating by stating the negative consequences of non-compliance
- VISIONARY = providing LT direction and vision and explaining the ‘why’
- AFFILIATIVE = creating harmony and promoting friendly interactions, placing
emphasis on personal needs over standards - PARTICIPATIVE = builds commitment, generates new ideas and invites followers to participate in the development of decisions
- PACESETTING = accomplishing tasks to high standards of excellence through leading by example (the pacesetting leader will be apprehensive about delegating and has little sympathy for poor performance)
- COACHING = supports and challenges followers to complete tasks while also developing their LT potential (Focuses on helping employees to identify strengths and weaknesses through providing ongoing feedback and building trusted relationships)
Coaching and visionary seen as best
THE COMPANY SECRETARY AS STRATEGIC LEADER - LEADERSHIP STYLES
When are directive, visionary, and affiliative leadership styles most and least effective?
(1) Directive
Most effective = when (1) applied to relatively straightforward tasks, (2) deviations from compliance will result in serious problems
Least effective = when (1) applied to tasks that are more complex, (2) used over LT, (3) used with self-motivated and capable employees
(2) Visionary
Most effective = when a new vision, clear direction and standards are needed
Least effective = when the leader is not perceived as credible
(3) Affiliative
Most effective = when (1) used as part of a broader repertoire, (2) getting diverse, conflicting groups to work together
Least effective = when (1) performance is inadequate, (2) in complex situations where clear direction and control are required, (3) followers are uninterested in personal friendship
THE COMPANY SECRETARY AS STRATEGIC LEADER - LEADERSHIP STYLES
When are participative, pacesetting, and coaching leadership styles most and least effective?
(4) Participative
Most useful = when followers are competent and/or if the leader is unclear about the best approach
Least effective = in crisis, when employees are not competent, lack crucial information or need close supervision
(5) Pacesetting
Most effective = when employees are highly motivated and competent and when they can make individual expert contributions, and when followers are similar to the leader
Least effective = when the leader cannot do everything personally and when employees need direction and development
(6) Coaching
Most effective when followers are interested in their own learning and development on the job
Least effective when the leader lacks belief in their employees and lacks expertise in questioning and empathy, as well as in an immediate crisis
THE COMPANY SECRETARY AS STRATEGIC LEADER - AN ‘INVISIBLE LEADER’
Research by the consultancy firm Better Boards (2018) found that this invisible leadership and smart power was a highly prized competency.
How do Kakabadse and colleagues (2017) differentiate leadership from invisible leadership?
What is Luke’s (2005) conception of third-dimensional ‘smart power’?
leadership in boardroom = most commonly observed through IQ (intelligence) and
PQ (political acumen)
invisible leadership = more associated with higher EQ (emotional) and MQ (moral) skills in leadership decision-making
1st dimension power = hard power = involves power over someone to tell them what they must do, and often derives from one’s formal position
2nd dimension power = soft power = power that arises from convincing followers through an appeal to what is right and aligned with what society values e.g., governance code
3rd dimension power = smart power = concerned with influencing others to change their perception so that they then intrinsically choose to do something emanating out of their own motivation
LEADERSHIP INFLUENCE - APPROACHES TO LEADERSHIP INFLUENCE
What are the 4 frameworks to help get one’s message across effectively in leadership influence?
(1) Heath and Heath ‘SUCCES’
(2) Cialdini, ‘persuasion’ and ‘pre-suasion’
(3) Cohen and Bradford ‘currencies of influence’
(4) Rodgers ‘Leadership Communication Grid’
LEADERSHIP INFLUENCE - APPROACHES TO LEADERSHIP INFLUENCE - SUCCES
Each letter of the acronym refers to a particular characteristic that can help make an idea ‘sticky’. What are the 6 characteristics?
(S)imple = understand what the core of your message is and then communicate it with an analogy
(U)nexpected = make your idea memorable by grabbing people’s attention through surprise and violating what the standard norms for your communication might be
(C)oncrete = use concrete and sensory language to help paint the person paint a mental picture
(C)redible = link credibility from outside authorities to your idea, including statistics or vivid details
(E)motional = appeal to people’s human values as this influences them more than through rational numbers. Ensure that you include what’s in it for them.
(S)tories = share your idea through a narrative story to bring it alive.
LEADERSHIP INFLUENCE - APPROACHES TO LEADERSHIP INFLUENCE - PERSUASION AND PRE-SUASION
Cialdini states that influence is based on what 7 key principles?
His latest book, Pre-suasion (2016), suggests that often the best way to persuade is what?
(1) reciprocity
(2) commitment and consistency
(3) social proof
(4) authority
(5) liking
(6) scarcity
(7) ‘unity principle’ = the more we identify with others, the more we are influenced by them
often the best way to persuade is not at the moment of communication but in artfully setting up the moment, so that influence naturally follows the course intended by the persuader
LEADERSHIP INFLUENCE - APPROACHES TO LEADERSHIP INFLUENCE - CURRENCIES OF INFLUENCE
What are the 5 types of currency that Cohen and Bradford identified are most often valued in organisations around the world?
For each currency, how can one appeal to people?
What will enable governance professionals to deliver change more effectively?
(1) Inspiration-related currencies = people who value these currencies want to find meaning and purpose in their actions (go out of way to help if right thing to do)
*one can appeal to these people by explaining the significance of the request and by illustrating it is the right thing to do
(2) Task-related currencies= relate to the task at hand and to getting the job done e.g., challenge
*one can appeal to people through this currency who want to test or expand their skills, or work on challenging tasks and projects
(3) Position-related currencies = people who value this currency focus on recognition, reputation, and visibility
*can be appealed to by a public acknowledgement of their efforts
(4) Relationship-related currencies = people who value relationships want to belong and will value being included as part of a cohesive team
*can be influenced by creating a personal connection, being actively listened to, and being offered support and understanding
(5) Personal-related currencies = this type of person appreciates having freedom
*one can appeal to them by creating options within an idea and showing sincere gratitude for their assistance
understanding each currency and flexing one’s approach, appropriate to the needs of any individual or particular stakeholder group
LEADERSHIP INFLUENCE - APPROACHES TO LEADERSHIP INFLUENCE - LEADERSHIP COMMUNICATION GRID
What are the 2 axis?
What are the 4 leadership communication methods that the axis create?
Where does the company secretary sit within the matrix?
X axis = formal communication (emphasis on message passing) to informal communication (emphasis on two-way joint sense-making and relationship building)
Y axis = unstructured (spontaneous and emergent) to structured (planned and contained)
(1) Formal and structured = conventional forums and processes (e.g., one-way platform speaking, reports, and updates)
(2) Informal and structured = structured dialogue and participatory workshops (e.g., meeting and workshops)
(3) Informal and unstructured = everyday conversations and interactions
(4) Formal and unstructured = role-modelling
the company secretary is more likely to be involved in influencing within the unstructured types
LEADERSHIP INFLUENCE - LEADERSHIP INFLUENCE TOOLS
What are the 5 leadership tools that the company secretary as invisible leader might use to wield smart power in the boardroom and beyond?
(1) building relationships
(2) networking
(3) acting politically
(4) storytelling
(5) challenging
LEADERSHIP INFLUENCE - LEADERSHIP INFLUENCE TOOLS - BUILDING RELATIONSHIPS
The power that a competent company secretary has is largely dictated by what?
This agreement will be significantly influenced by what?
What is the is the concept of radical collaboration?
by the role the chair provides them
by the quality of the trust in the relationship between the chair and the company
secretary
(Trust = (credibility + reliability + intimacy)/self-interest). These are all factors that a company secretary can influence in the relationships with the chair and the rest of the board)
Radical collaboration = managing one’s own defensiveness = reducing one’s ego, perhaps through mindfulness exercises, in relation to personal resilience, may be key in maintaining the humility required to work diligently in the background as a company secretary
