Nearly three quarters (73%) of CEOs of UK businesses reported that board members have increased their operational involvement since Covid-19, a report by executive search firm Heidrick & Struggles found.
“HR should enable greater board involvement, as it can provide strategic oversight and a broader perspective on critical decisions,” transformation advisor and consultant Amna Zaidi told HR magazine.
“However, this involvement needs careful management to ensure it enhances rather than hinders operational effectiveness.”
The study, published yesterday (14 August) also found 61% of UK CEOs believed that boards should engage with groups of employees – but just 6% said that having a direct employee representative on the board was a good idea.
HR should in turn develop emerging leaders' skillsets to help them engage with board members, commented Alice Breeden, a partner in Heidrick & Struggles’ London office and regional co-managing partner of the CEO and board of directors practice in Europe and Africa.
Speaking to HR magazine, she said: “HR has a pivotal role to help the board work well with the organisation.
“HR departments are defining and building the skills executives need to work with the board, and 'working with the board' is often part of the skills matrix for high-potential executives to move into C-suite roles.
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“Organisations are creating development programmes for executives where they meet the board, learn about board basics, and work through a simulated board meeting to practice and hone their skills.”
While increased board involvement could benefit an organisation, HR should ensure that board and management roles remain distinct, according to Ian Moore, managing director of consultancy Lodge Court.
He told HR magazine: “The upside to having the board dive deeper into operations includes better decision-making, as they’ll be more in tune with the organisation’s day-to-day and long-term goals.
“This also means better strategic alignment, more relevant advice, and improved risk management thanks to their oversight.
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“However, it’s not all roses. There’s a risk of micromanagement, which can cramp management’s style and creativity.
“More involvement can also slow things down due to extra layers of input and approval. And, if roles get blurred between governance and management, it can lead to confusion and conflict, messing with how smoothly things run.”
The Heidrick & Struggles team surveyed 3,156 CEOs and non-executive directors in the UK and around the world for its Board Monitor 2024 report.
