Board Culture

Board culture encompasses the mindset, underlying assumptions, group norms, beliefs and values that influence the interactions and decisions of the board. Board culture influences the ways in which directors participate in board discussions and the decision making process.

Establishing a healthy board culture is important for board effectiveness and for maintaining a constructive partnership with management. A healthy board culture sets the tone for the broader organisation.

Board culture is unique to an individual board and organisation. That being said, there are different models that can assist with understanding board culture. These include:

Inquisitive: emphasises idea exchange and exploring alternatives

Decisive: values measurable results, focused agendas, and outcome-oriented decisions

Collaborative: builds a sense of consensus on values and a greater purpose

Disciplined: emphasises risk management, consistency and adherence to protocols

It is important to first identify the kind of board culture you want to establish. From there it’s a matter of creating opportunities that align with this way of thinking. For example, changes to board composition can help ensure that directors not only work well together but challenge each other when required. It is also important to continue to review board culture to ensure that it remains conducive to effective board performance.

Board culture impacts on board decision-making and the ability of the board to effectively steer the organisation.