Embracing development

High-performing boards are one of the characteristics of outstanding organisations, but they don’t just happen.

What often sets extraordinary organisations apart? It’s not just vision, strategy, or even flawless execution, important though these factors are. It’s having a high-performing board.

It is remarkable what becomes possible with a board that doesn’t just govern but drives innovation, inspires leadership, and confidently navigates complexity. But extraordinary boards don’t just happen; they must be developed.

Board development has evolved significantly in recent years, with a growing emphasis on strategic leadership and governance practices that align with organisational goals.

Some of the key trends shaping board governance—and therefore also board development—include diversity, equity, and inclusion (DEI). There is an increasing focus on building diverse boards that reflect the broader community and stakeholder base. This includes not only diversity in terms of gender, race, and ethnicity but also diversity of thought, experience, and skillsets.

Skills-based governance is another big factor. There is an ongoing shift away from traditional, largely advisory roles to more active, hands-on governance for boards. As organisations face complex challenges, there’s a greater emphasis on recruiting board members with specific skills, such as financial, legal, or sector-specific experience.

Modern boards are also increasingly expected to provide strategic oversight rather than simply transactional or compliance-focused roles. This involves a shift towards helping organisations navigate long-term challenges, identify new opportunities, and ensure that executive leadership is aligned with the organisation’s mission and vision.

Technology integration is a big influence on board development too. More boards are utilising technology tools to streamline operations, improve communication, and enhance decision-making. Digital platforms for virtual meetings, data analytics, and performance tracking have become integral to how boards function.

Last but certainly not least, performance evaluation and continuous learning are two more significant factors. There’s growing recognition of the importance of ongoing board development, with many boards now adopting regular performance evaluations to assess effectiveness.

Becoming a high-performing board

In a recent paper, GGI CEO Andrew Corbett-Nolan and Principal Consultant Peter Allanson explored the notion of high-performing boards, which they said were pivotal to organisational success. Some of the key characteristics they identified were:

• Strategic vision and clarity: Exceptional boards possess a well-defined strategic vision, aligning organisational goals with stakeholder expectations. This clarity enables informed decision-making and cohesive action.
• Diverse composition: A mix of skills, experiences, and perspectives fosters innovative thinking and comprehensive problem-solving, enhancing the board's overall performance.
• Strong leadership: Effective chairs facilitate open dialogue, encourage diverse viewpoints, and guide the board towards consensus, ensuring balanced and decisive leadership.
• Culture of accountability: High-performing boards rigorously assess their own practices, holding themselves accountable to the highest standards of governance and ethical conduct.
• Continuous development: Commitment to ongoing education and adaptation to emerging challenges keeps boards responsive and resilient in a dynamic environment.

Andrew and Peter also identified key focus areas for senior leaders looking to cultivate a high-performing board that not only meets governance requirements but also drives the organisation towards sustained success and growth.

• Conduct regular board evaluations: Implement structured assessments to identify strengths and areas for improvement, fostering a culture of continuous enhancement.
• Promote diversity and inclusion: Actively seek diverse candidates to enrich board discussions and decision-making processes.
• Enhance strategic alignment: Ensure that the board's activities and decisions are consistently aligned with the organisation's long-term objectives.
• Foster open communication: Encourage a culture where open, honest, and respectful dialogue is the norm, enabling effective collaboration and decision-making.
• Invest in board development: Provide opportunities for training and development to keep board members informed of best practices and emerging trends.

An overlooked differentiator

In our experience, the last of these recommendations is often overlooked, yet it is fundamental to organisational success. From our work with more than 100 boards annually, across diverse sectors, it’s clear that the most effective boards are those that continuously invest in their own growth.

So, it’s surprising to us that many boards hesitate to prioritise their own development. This reluctance may stem from misconceptions – for example, that development requires a comprehensive, time-intensive programme. In reality, targeted, focused efforts can yield significant improvements. A single session on crafting and applying a risk appetite statement, for instance, can elevate an organisation’s entire approach to risk maturity.

The key is to tailor development to the board’s specific needs. Diagnostics can reveal gaps in governance, dynamics, or decision-making. Observing meetings often highlights patterns that impede progress – such as unclear roles or missed opportunities for constructive challenge. Even individual coaching or 360-degree feedback can offer transformative insights for leaders, sharpening focus and addressing blind spots.

The boards that thrive are those that embrace development as a tool for continuous learning and adaptation, particularly in today’s volatile landscape. Effective governance isn’t static – it evolves alongside the organization and its challenges. Development isn’t a ‘nice to have’; it’s a strategic imperative.

Boards that commit to reflection and learning not only improve their own performance but also greatly strengthen their organisation’s ability to navigate complexity and change.

Learn more about how GGI can support your board’s development