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INTERNATIONAL GOVERNANCE SUMMIT: GOVERNANCE
FOR EQUITABLE AND SUSTAINABLE DEVELOPMENT
Session: Effective Leadership – Leadership Role of
Boards
Date: November 8, 2018
Facilitator:
Raphael G. Mwai, MBS, FCS.
Policy and Governance Advisor,
PPD Consultants Ltd
Mobile: +254722731728
Email: [email protected]
Website: www.ppdconsult.com
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1. Session Objectives
Understand the leadership role of the board in the context of
governance framework;
Appreciate the distinct and complimentary nature of
leadership and governance;
Understand the role of board in strategy formulation and
execution;
Appreciate that communication is key to leadership
effectiveness
Appreciate the relationship between competence and
positive outcomes
Understand that guidance in the management of change is a
key leadership competence
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2. Leadership and governance
Leadership is about influence
Influencing people towards achievements of common
goals;
Inspiring and empowering people to achieve defined
objectives;
Governance is about accountability
Accountability for utilization of resources
Accountability for outcomes
Integrated thinking
Leadership is exercised in the context of the institutional
framework for corporate governance discussed hereunder (fig
2.1)
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Fig 2.1: Institutional framework for corporate governance
Sta
kehold
ers (socia
l)
Shareholders
Board of Directors
Management Team
Enviro
nm
ent
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R.G. Mwai
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3. Leadership and governance
Leadership is a key pillar of corporate governance;
Leadership in the context of corporate governance is illustrated in fig 3.1
Fig 3.1: Pillars of corporate governance
Good Corporate Governance E
thic
al
an
d
eff
ec
tiv
e
lea
de
rsh
ip
Eff
ec
tiv
e s
ys
tem
s,
str
uc
ture
s a
nd
pro
ce
ss
es
Sy
ste
m o
f In
tern
al
co
ntr
ol
an
d R
isk
ma
na
ge
me
nt
Tra
ns
pa
ren
cy
an
d
ac
co
un
tab
ilit
y
Sustainability and performance management
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RG Mwai
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4.0. Governance role of the board
The governance role of the board is depicted in fig 4.1
Fig 4.1: Governance Role of the Board
Directors Role
and
Responsibility
Sets Strategic
Direction
Approves
policy and
planning
Monitors and
oversees
implementation
Ensures
Accountability
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R.G. Mwai
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Leadership and management are interlinked:
Leadership: policy guidance
Management: policy execution:
Effective leadership at board level finds expression in effective management
Managing for results
Sustainable results
The interlinkage between leadership and management is best illustrated in the optimal business model depicted hereunder (fig 5.1)
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5. Leadership and management
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Market environment and market share
Customer profile and base
Customer service standards
Revenue sources and market projections
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(5. Con’t)
Fig 5.1: Optimal Business Model
MARKET
CUSTOMER SERVICE
DELIVERY
(OPERATIONS)
HUMAN RESOURCES
FINANCIAL
RESOURCES
Production and delivery of services
Technical support services and Technology in service delivery
Processes and systems in service delivery
Staff numbers, competence and deployment
Training and development needs
Teamwork, motivation and productivity
Sources and disbursement of funds
Revenue yield and accountability for financial resources
Financial planning and control
POLICIES AND
SYSTEMS
Policies in key result areas (incl. governance)
Value chain analysis
Risk management and systems audit R.G. Mwai
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Lesser first day kind god us earth. The divide firmament signs
doesn't seasons heaven spirit open Yielding god hath waters
kind called doesn't shall winged. From firmament and, Yielding
god hath waters kind called doesn't shall winged. From
firmament and,
The board will provide guidance and approve policy in the key results areas
The management will execute policy as approved by the board
Leadership and management competence are therefore distinct complimentary
‘The Governance Profession’
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(5. Con’t)
Note
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board leadership has to be strategic
Identifying and articulating the strategic domain of the organization (mandate and mission);
Communicating a compelling vision of the organization
Planning how vision and goals are to be achieved (domain navigation)
alignment to environment – structure;
empowerment and motivation;
resource mobilization
Entrenching good corporate governance in the organization – ethical leadership
Nurturing a positive culture – results oriented
Leading change in the dynamic environment (based on the theory of change)
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6. Leadership and board effectiveness
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Scanning the environment
general environment – macro – economic variables: cost of doing business, devolution, policy orientation (the Big Four)
task environment: industry structure, competition, incentives (export subsidy)
Strategy implementation
appropriate structures
competence and capabilities
corporate culture
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7. Contemporary issues in board leadership
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8. Leadership role of the Board
Corporate culture (ethical
leadership)
Strategy (Pathfinding)
Structure (aligning)
Execution (empowering)
Learning (monitoring
and evaluation)
Adopted from: The 8th Habit – Steve Covey
Leadership effectiveness at board level is illustrated in fig 8.1
Fig 8.1: Board effectiveness
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Attributes of successful leaders:
Displays strategic perspectives
inspires and motivates – a compelling vision;
displays high level of integrity and honesty;
makes things happen – drive for results;
communicates powerfully;
builds high level of professional and technical expertise
develops others
builds relationships
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9. Effective leadership and effective leaders
Jack Zenger and J. Folkman
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THANK YOU
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