Directors need to be bouncing balls to cope with uncertainty

PETERBOROUGH, U.K. - Oct. 26, 2016 - PRLog -- Directors need to be resilient bouncing balls to cope with an uncertain business environment according to Winning Companies; Winning People author Prof. Colin Coulson-Thomas. Speaking at the 16^th London Global Convention on Corporate Governance and Sustainability he suggested "opportunity could be another word for uncertainty."

Coulson-Thomas agrees that uncertainty can be challenging, but pointed out: "Our challenging business environment offers unprecedented opportunities. Collaborative responses to uncertainty can create closer and more strategic relationships with customers, suppliers and business partners."

He continued: "Uncertainty has always been a fact of life for many - if not most – entrepreneurs. We are told that markets don't like uncertainty. When there is uncertainty cautious and risk averse boards put investment plans on hold. More courageous and entrepreneurial spirits respond differently. They are often more resilient and more willing to be proactive. During periods of uncertainty, they gain competitive advantage, grow market share and develop first mover leads while others hold back."

The Professor raised a series of questions for entrepreneurs, business owners and board chairs: "Are your directors fearful, reactive and defensive or confident, proactive and innovative? Were they appointed because of their past achievements and experiences in yesterday's world, or their openness to future possibilities? Are they trying to improve and/or protect what exists, or create new and better alternatives?"

He continued: "Where will tomorrow's directors come from and how will they be prepared for their boardroom roles? What contributions will you expect from them? Tomorrow's boards will reflect decisions we take today. For new board members, do you look in familiar places or cast the net more widely? Predicting the specific experience, expertise, qualifications and track record that may be relevant in future scenarios is not easy, but integrity and personal qualities may become even more important than they are today."

Coulson-Thomas believes: "We need directors who can handle turbulence and uncertainty. They have to assess risks, make choices and take decisions in shifting situations, where data may be suspect and probabilities are changing. We need people who instinctively do the right things."

However, he finds: "The rarefied atmosphere of corporate head offices can lead to over-sophistication. Faced with uncertainty, some people hide behind prison bars of their own creation. They are so concerned with avoiding risks and compliance that they loose the courage to be entrepreneurial and to have a go."

The Professor warns: "When making board appointments, be wary of candidates who have effortlessly advanced in a period of greater stability and certainty than we have today. How resilient will they be when tested? In crisis situations, some people surprise us and rise to the occasion, while others disappoint. Don't overlook the latent potential of your existing team. Finding what we need within ourselves rather than looking for what might not exist is a key message from a classic 1939 film, The Wizard of Oz."

Transported to the land of Oz, young Dorothy set out on an uncertain and potentially dangerous journey with three companions: a tin man with a hard shell who felt he needed compassion and wanted a heart; a cowardly lion who wanted courage; a scarecrow who wanted a brain so that he could think.

According to Coulson-Thomas: "Dorothy and her companions faced a succession of challenges, but they stayed together. They found within themselves the compassion, courage and thinking required to cope with adversity and overcome obstacles. How tomorrow's boards will cope and be perceived will depend critically upon the extent to which future directors possess these and other personal qualities."

He concluded: "While new blood on a board can be welcome, where there is humility and self-awareness there is the possibility of renewal, reinvention and reinvigoration. Understanding and addressing the deficiencies within your existing directors and board might enable you to identify, release and/or develop what you require to confront and exploit uncertainty. It may allow you to build a positive and resilient team of 'bouncing balls' who can repeatedly recover and move forward."

Prof. Colin Coulson-Thomas, an experienced director, leads the International Governance Initiative of the Order of St Lazarus, is Director-General, IOD India, UK and Europe, and advises boards. He is also Chancellor and a Professorial Fellow at the School for the Creative Arts, Chairman of the Audit and Risk Committee of United Learning and a member of the advisory board of Bridges of Sports. He has helped directors in over 40 countries to improve director, board and corporate performance. His latest publications can be obtained from: http://www.policypublications.com/. His speech was delivered at the 16^th London Global Convention on Corporate Governance and Sustainability organised by IOD India and held at the Millennium Hotel, 44 Grosvenor Square, London W1K 2HP.