Rising inflation and interest rates are blowing-up cost structures and growth models across multiple sectors. It’s making it harder to have robust discussions at the top table and yet it’s in these times that openness, honesty and trust are essential if senior executive and non-executive directors are to make the rights calls.

 

So, how do you ensure that, as a Board or senior leadership team, you’re having conversations that get to the heart of the matter?  

 

Michelle Darracott, Non-executive Director at the Institute & Faculty of Actuaries, comments: “It's as much about listening as talking, it's about … making sure all of the issues come out, so everyone is on the same page.  

 

“Ultimately, for a good debate, everyone needs to feel that they can express their point of view and not be criticised for it or isolated as a result. The whole sense of creating psychological safety is really important.” 

 

Ian Ashton, Group CFO of SIG, notes how crucial the CEO and Chair are in building a culture where people feel able to speak without recrimination or backlash. “They have to set out the right environment where people are able to share views, debate, argue and sometimes disagree.” 

 

Any CEO, Chair and senior executive will know that the key is for disagreements not to spill outside of a meeting. Ian said: “Be clear on the parameters of that discussion, but then also be clear that when you leave the room you are aligned in what you say or present to the organisation as a whole. That's fundamental.” 

 

Mike Tye, Chair of The Big Table Group and a Board Mentor at Criticaleye, emphasises the need to build relationships: “Each Board member needs to invest time in getting to know the others as individuals… Only when you have built those relationships, do you create trust. Without trust, you can't have a tough debate because it becomes emotional and then people aren’t listening to the best argument.” 

 

 

Informed Decision-Making

 

A strong Board and leadership team will know how to use and draw on data to inform their decision-making.  

 

Brian Hayes, Chair of Bank of Montreal Europe, says: “A great debate is one that shifts discussion to the stakeholder perspective and is validated by reliable data… When you attend a Board meeting, you usually get conventional internal reporting, such as how customers are engaging, what deals have been won and what the numbers look like. That lens is just our perception, our point of view. 

 

"When you turn the tables and start getting reports on the journey that the customer takes from start to finish, then you have a very powerful set of insights... What makes that a really dynamic debate is that you are starting to look at our propositions through the lens of people who are actually experiencing your products and services and appreciating your value. This is what makes your business relevant and sustainable.”  

 

Matthew Blagg, CEO of Criticaleye, elaborates on this point. “Good discussions at the top table are about having the difficult conversations without getting emotional. The challenge is that you need people with different views, so you can question each other robustly and benchmark ideas, but often strong beliefs come with strong emotions. 

 

 “When things boil over, you've got to step back and pause. When you get to complex, thorny issues, little and often is better… You're not going to solve everything in one meeting.”