This summer I have been picking the brains of leaders of diverse board-led organizations. I am gathering their insights regarding the characteristics or behaviors of effective leaders, whether they are board members or managers. The most frequently mentioned factor has been emotional intelligence; in fact I think I have heard more people bring up this skill in the past month than in the past several years.
Emotional intelligence can be defined as the ability to identify, assess, and manage one’s own emotions, the emotions of others, and the emotions of groups. Several leadership specialists purport that an organization’s emotional health impacts its bottom line more than does its mental health. Patrick Lencioni suggests that it is now the norm for companies to make smart decisions, yet those with healthy cultures experience notably stronger results. Stephen M.R. Covey states that organizations with high levels of trust can accomplish things with greater speed. Ken Blanchard promotes managing people differently based on their individual competency and confidence with the task at hand. Emotional intelligence is the ability to identify people’s emotional reality and relate to them in a manner that respects them, engages them, and inspires them to work effectively for positive results.
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There was a common thread to many of my business conversations this week – the necessity of leaders having passion for their organization. A sole proprietor shared that he has to reignite his passion for his business before he can lead it into its next growth phase. CEOs expressed concern that some of their board members are not engaged with the organization because they are not passionate about its mission. An Executive Director was excited about prospective new board members who have passion for the non-profit’s cause. A board chair was energized by the enthusiasm which several board members are applying to their role. Can positive emotion really be that valuable?
A city councilor in the United States recently asked me how she could increase her interaction with the residents of the city so she better understood their hopes and needs without stepping on the toes of the mayor who was elected by the public as the senior full-time staff person. This reminded me of the inherent challenges in not having a single-line of authority within an organization.
I have recently observed diverse practices in the fulfilling of the board chair’s role, from exercising too little authority, to appropriate authority, to too much authority. In most cases the intent of the board chair is to serve, not to exert personal control. However, a clear understanding of who is to be served and what constitutes excellent service is often lacking.
“We’ll appoint a committee to handle the changes in our governance structure so all the board members don’t have to invest so much time in the process”, suggest the boards of many organizations who are planning governance overhauls or mergers. While a committee can increase the board’s efficiency by researching options, collecting feedback from stakeholders, and communicating key findings, I have not seen effective and efficient implementation of significant governance change without all board members investing several days of their time.
“What the board members do outside the boardroom is even more important than what they do in the boardroom” a seasoned board member recently commented to me. There is a lot of truth in this statement. It is only during a board meeting that board members have authority to make decisions for the organization, but being equipped to make quality decisions and presenting a positive leadership image for the organization take lots of time beyond board meetings.
Recently I have seen several organizations that are struggling with quality board member communication. Even when all the board members are passionate about the organization and have the common good at heart they are not experiencing the joys of being part of a high performing board team that leads the organization to great results.
Stephen Covey’s first habit of highly successful people, “begin with the end in mind”, also applies to organizations. The purpose of strategic planning is to articulate goals for the organization for the next one to five years. These goals define what the organization is expected to achieve by the specified dates.
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