Towards an intelligent transition
Today’s emerging directors have an important role to play. They need to show good judgement, balance, diplomacy, business experience and skills and an understanding of basic motivational psychology. But above all, they need to show exceptional skills in the five key components outlined by Daniel Goleman in Emotional Intelligence.
In addition to these skills, emerging directors have to balance their role in governance, acting outside the role of management, but knowing and understanding what is happening inside management. This is easy to say, but hard to perform for many new directors. Why is this so?
Well, most new directors have had a successful career in top-line management and a track record that qualifies them for a position on a relevant board.
The challenge, however, for the emerging director is to display a new set of skills, not those he or she displayed at the cut and thrust of the “coal face” of running a successful, thriving business. Moreover, the adrenalin of this senior, leadership activity is often like a “drug” and relished and enjoyed by the person – hence, the challenge to perform now without this charge of continual and consistent daily excitement is often difficult.
In many ways, this feeling is shared by senior managers who just retire without taking on a board position. Seemingly lost and lacking direction and excitement, they often become fooled that “this retirement thing is great”, only to find that the endorphins in the brain turn off, their creative thinking suffers and they soon realise they can’t play golf or tennis four days a week.
Emerging directors can easily start to fall for a similar trap and may throw themselves into the new directorship role, often becoming transparent and vulnerable in the process and lacking the judgement, balance and patience to be perceived as a valued asset.
This can be observed as a serious lack of judgement by the other, more experienced directors who often become “off-side” with an emerging director, even though his or her contribution is valid, useful and important.
Dr Abraham Maslow’s famous Hierarchy of Needs clearly shows why this behaviour can happen to an emerging director. Emerging directors had usually been at level five (self-actualisation), realising their full potential by generating new ideas, tapping their management and staff’s talent, creating (hopefully) with them a new vision, mission, values and direction. Being totally self-motivated, they needed no one to kick start them each day.
They had also been operating consistently at level four (respecting themselves), receiving respect from others in the business and consistently being able to display their abilities, skills and knowledge, enabling them to be at their most productive level of performance.
They had also been used to operating at level three (receiving consistent social recognition) by responding or communicating with their management and staff, often being in meetings and groups and being able to communicate regularly to their people from a position of power.
In addition, they created a successful business relationship “circle of influence” and because they performed consistently well, they were trusted, people had confidence in them and believed in them as dynamic, driven leaders. The circle became complete and they were respected for their leadership roles, supported, admired, promoted and referred to by all.
However, now as an emerging director or ”new kid on the block”, he or she needs to focus on further developing the five components of emotional intelligence to perform appropriately and gain the support and confidence of the remainder of the board.
The first key component of emotional intelligence is self-awareness or the ability to recognise and understand one’s moods, emotions and drives as well as one’s effect on others. The traits that display this component are self-confidence, a realistic self-assessment and especially, a self-deprecating sense of humour.
The second key component is self-regulation or the ability to control or redirect disruptive impulses and moods and the propensity to suspend judgement and think before acting. The traits that display this component are the ability to show trust, worthiness and integrity, being comfortable with ambiguity and especially by being open to change.
The third key component of emotional intelligence is motivation or a passion to work for reasons beyond money or status and a propensity to pursue goals with energy and persistence. The traits that display this component are a strong drive to achieve, combined with optimism in the face of failure and a strong commitment to being organised.
The fourth key component is the enviable quality of empathy, a key ingredient for the emerging director. This is shown by the ability to understand the emotional make up of other people and especially a skill in treating others according to their emotional needs. The traits of this component are displaying expertise in building and retaining talent, showing a cross-cultural sensitivity and providing good service to colleagues, clients and customers.
The fifth and last key component of emotional intelligence is social skills and is high on the agenda, or should be, for the emerging director. Social skills are described as the proficiency in managing relationships and building networks and having an ability to find common ground and build rapport with others. The traits that display this important emerging director skill are an effectiveness in leading change, having the ability to persuade others in a course of actions or in their ideas or recommendations, and expertise in building and leading teams of people.
I believe empathy and social skills are the two key areas of these five components that emerging directors should focus on conquering. These will give the directors the ability to hasten slowly and quietly and use their power, skills and experience wisely so they make the other experienced members of the board feel comfortable and confident with their appointment.
Then, after a consolidating period of showing patience and good judgement, and perhaps some mentoring and coaching, they will be able to consistently and effectively use their fragile power without fear or favour in the interests of the business, shareholders, management, staff and, lastly, themselves.
George Norris FAICD
Principal and corporate coach
Norris Management