THIS CHAIR IS FOR A LADY

How to be a more effective chair – Dr. Ralph Ward and Dr. Muneer Muhamed

Gender diversity is an issue that finds ‘No Admission’ stuck on its face in many boardrooms. This is despite the fact that it’s one of the top five UN Sustainable Development Goals (SDGs) that most Sri Lankan organisations have acknowledged is critical to success. But when will they meet the goal to have at least one independent female director on their boards?

Studies clearly show that businesses with more women leaders are 21 percent more likely to outperform their competitors and 27 percent are better positioned to create value. Yet, the speed at which the gender gap is closing in boardrooms around the world is dismal.

In the US interestingly, the needle is definitely bending when it comes to gender diversity on boards. The latest U.S. Spencer Stuart Board Index finds that for the first time, boards of all S&P 500 companies have at least one female member.

This is good progress in terms of board diversity no doubt; but in one crucial aspect, it remains limited: more women in the boardroom has not necessarily translated into more females at the head of the table. This is similar to what we see in Sri Lanka too.

So how did women who chair boards beat the odds? What challenges do they face and are there lessons they can offer to a new generation of lady directors?

We asked a few board chairpersons from around the globe for their pearls of wisdom about getting onto boards and succeeding in their roles.

Here’s some advice from women who are heading boards of directors today.

The first step is gaining experience by chairing a committee – particularly a substantive committee such as one on compensation or audit. That will be extremely handy when you are ready to take up a major role as a board chair. Remember that presiding over a board or even a committee is similar to leading from behind.

As the chair, you’re there to facilitate the board and support the enterprise’s strategy. And learning how to do that is very different from what you may have learnt as a CEO in another organisation in the past.

After you’ve chaired a committee for a couple of years and when an opportunity for a female chair opens up, be direct about wanting the job. Remember that you need to ask for it explicitly. Go to the other directors and seek their inputs and support. You have to be willing to listen, and campaign with passion and conviction, as well as convince the directorate that you’re ready for the post of chairperson.

It is not an easy task to be a board chair unless you are doing it full-time – so it’s better to think about your availability first. If leading a board is a career choice, make sure you will have sufficient time for the job.

It’s also a good idea to have had some exposure to the functioning of multiple boards in your career to understand different styles of leadership. People learn a lot from watching other chairs – i.e. what’s good and bad. As a rule of thumb, try to gain at least five or six years of experience on boards before seeking to be appointed as a chairperson.

In the US, there is no fundamental difference between how the current generation of board members deals with a chairman or chairperson. They are much more comfortable with women in leadership than previous generations. In Asia however, this is not so. An assertive chairperson in a leading business has been alternatively branded as abrasive or high-handed.

However, the thinking on this is slowly changing although you do still run across some of the old guard who find it difficult to take guidance from women. It’s necessary to be sensitive to the situation in a cultural sense and work towards changing their attitudes, and making them comfortable with the idea of working with a female chair.

The role of a chairman or chairperson is to ensure that the board of directors functions smoothly. One thing that has changed over time is the pace at which the chair needs to move. You will have to be more on your toes to support the role of the board – especially in these times of remote meetings.

You won’t be able to conduct a five hour long board meeting today, even though it was possible before the pandemic. It is wiser to spread the meeting out over three days with each session lasting about 90 minutes. The chair will find that it is harder now to read the room during virtual meetings.

As the chair, you may need to be a little more procedural and formal to ensure that everyone can contribute, as well as be heard. You will have to make sure that everyone can participate in the meetings; and as part of that process, you’ll need to call on people during the sessions more often.

You don’t need to be nervous before leading your first board meeting as the chair. All you need to be is your authentic self. In addition, you won’t have to do too much groundwork before chairing your first meeting.

Remember: you got the job because the other directors already have confidence in you!