Chronicle Editor
Dumisani Ntini
AS numerous organisations enter new financial years, it is not surprising that we have been seeing multiple calls for expression of interest for members of the public and professionals at large to serve on the boards of directors of these establishments.
With the progression of time, private entities, non-governmental organisations, parastatals, Government departments, endowments and pension funds have experienced the advantages of resetting their board constituents and appointing new directors. Firms that had not previously taken this ”board reshuffling” stance had suffered from a perpetuation of antiquated executive decision-making which corroded conceptual and implementation efficacy, consequently compromising their triple-bottom line, and eroding the effectiveness of their environmental, social and governance (ESG) strategies.
It is crucial for board members, directors and executives (hereinafter termed ”governance designates”) to understand the fast-paced movement, dynamism and ever-evolving nature of our global village. This international economic motion has been made all the more rapid by the emergence of a more educated, informed and accomplished global youth population component which is taking up positions in spaces previously known to be occupied by a more elderly and established population demographic.
If you witnessed the recent Forbes 30 Under 30 Summit held in Gaborone, Botswana, you would undoubtedly have been amazed at how young people are taking centre stage in economies as founders of innovative enterprises, champions of social movements and as influential decision-makers in Government ministries and agencies.
Many of these young people have found themselves being appointed to serve as directors and board members of institutions that play a pivotal role in the sustainable development of their nations.
Board appointment is no longer solely premised on the commissioning of accomplished industry titans with decades of experience. Firms have been seen to be taking a more unconventional and divergent approach.
This consequently warrants a consideration of the importance of youth inclusion in corporate boards from two perspectives. Firstly, we alert present day boards, directors and executives of the potential benefits of appointing individuals within this younger population demographic. Thereafter, we encourage young people to take a chance, respond to these calls for expression of interest and to serve on corporate boards, by making them alive to the advantages they stand to experience by taking up such leadership positions.
In our engagements with corporate, non-governmental and state-owned entity boards as well as executives, we consistently remind them that they stand to benefit immensely by complementing their corporate board memberships with younger individuals.
Their innovative nature, coupled with their technological savvy and zeal for achievement presents opportunities for a more diverse scope for informed decision-making, better researched system approaches and more streamlined implementation of strategic objectives from the highest to the lowest levels of the organisational hierarchy.
The appointment of a younger corporate board complement yields a more favourable opportunity for boards to bridge generational gaps. Governance designates must not underestimate the knowledge that younger professionals have of today’s target markets, which tend largely to comprise youth and young buyers. Depending on the products and services offered by the organisations that would appoint the young changemakers, their boards can be given insight into what appeals to target markets as well as information on present-day trends, giving these organisations more of a competitive edge.
Respecting that having individuals on the board who are representative of consumer bases is advantageous, governance designates serving on boards need not fear the high-spirited, inquisitive and somewhat disruptive nature of these new, younger board members.
Their ability to challenge previous thinking and present novel solutions based on research and factual market developments yields an opportunity for more well thought-out strategic planning, clear and concise formulation of objectives and ultimately more effective definition of Key Performance Indicators (KPIs) within organisational strategies.
Young professionals and leaders are encouraged to join corporate boards and take the leadership leap into realms that would have them making more impactful decisions. Serving on corporate boards gives young leaders a chance to develop their skills. Furthermore, serving at the highest level of decision-making within highly influential organisations can give them practical knowledge and insight of the running of organisations and their industry particularities, sharpening their personal competitive mindset due to the more holistic, overarching and ”eagle’s eye” view of the organisation that a board member tends to have. With their zeal and hunger for achievement, being appointed on boards affords young leaders an opportunity to present their ingenious ideas and express their innovative characters at a more influential and impactful level of the organogram.
This further frames them (in terms of both mindset and action) into more impactful change agents both for the organisation and its plethora of stakeholders. With respect to their long-term aspirations, serving on boards from younger ages gives emerging leaders the chance to network with more experienced and knowledgeable leaders who serve on different boards themselves, opening up a world of tutelage, mentorship and development opportunity for them. This would yield ample advantage for future employment and directorship prospects.
Having highlighted this broad spectrum of advantages, young leaders might inquire what the required skills and competencies would be for them to serve on boards. In other words, what are the elements expected by the governance designates who undertake the actual appointments? As stipulated by the Corporate Governance Institute, there are five specific ”types of intelligence” to consider. The first is relational intelligence (including interpersonal skills and empathy for instance). Secondly, financial intelligence (quantitative aptitude, analysis and interpretation for example).
Strategic intelligence, which entails planning, detailing and implementation proficiency is the third. Role knowledge is another type of intelligence or trait required, as it lays the foundation for the board member’s decisions and actions.
Lastly, cultural intelligence is crucial as it would exhibit the board member’s capacity to compromise, show their tolerance levels, their knowledge and adherence to norms, and display their ability to uphold organisational values. In conclusion, it is overly important for considerations to be made towards board reforms and changes in board constituents.
This is important for sustained success and organisational longevity. To young leaders, professionals and changemakers, stay encouraged, there’s no better time than the present.
λ Dumisani F Ntini is the founder of Global Governance Group, a corporate training and consulting practice with operations in Zimbabwe, Namibia and Botswana. He can be contacted on [email protected].
Online Reporter