In times of crisis many boards will be forced to revisit the line between board and management. When survival is on the line, the board needs to have its hand on the wheel, and be much more closely involved in the operations of the business. This is not problematic, and is to be expected in an effective governance structure.
However, what can often become problematic is when the storms recede and the organisation attempts to make the transition back towards standard operating procedure. In a number of review processes, we see this transition to normality can cause friction and problems between board and management.
Especially if the organisation has been in crisis for an extended period of time, this transition can be difficult. To make this behavioural transition work for board and management, both parties are likely to require a ‘reset’. A comprehensive review process that surfaces all underlying tensions can help to reset relationships for a return to normality.
As a crisis recedes, there are typically three causes of friction (which may often be interrelated):
- Some directors maintain higher levels of operational involvement or intervention
- Sustained board intervention makes management feel like they aren’t trusted to execute on the strategy
- The board don’t feel like they have enough visibility as to the performance of the business