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INTERNATIONAL GOVERNANCE SUMMIT: GOVERNANCE

FOR EQUITABLE AND SUSTAINABLE DEVELOPMENT

Session: Effective Leadership – Leadership Role of

Boards

Date: November 8, 2018

Facilitator:

Raphael G. Mwai, MBS, FCS.

Policy and Governance Advisor,

PPD Consultants Ltd

Mobile: +254722731728

Email: rgmwai@ppdconsult.com

Website: www.ppdconsult.com

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1. Session Objectives

Understand the leadership role of the board in the context of

governance framework;

Appreciate the distinct and complimentary nature of

leadership and governance;

Understand the role of board in strategy formulation and

execution;

Appreciate that communication is key to leadership

effectiveness

Appreciate the relationship between competence and

positive outcomes

Understand that guidance in the management of change is a

key leadership competence

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2. Leadership and governance

Leadership is about influence

Influencing people towards achievements of common

goals;

Inspiring and empowering people to achieve defined

objectives;

Governance is about accountability

Accountability for utilization of resources

Accountability for outcomes

Integrated thinking

Leadership is exercised in the context of the institutional

framework for corporate governance discussed hereunder (fig

2.1)

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Fig 2.1: Institutional framework for corporate governance

Sta

kehold

ers (socia

l)

Shareholders

Board of Directors

Management Team

Enviro

nm

ent

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R.G. Mwai

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3. Leadership and governance

Leadership is a key pillar of corporate governance;

Leadership in the context of corporate governance is illustrated in fig 3.1

Fig 3.1: Pillars of corporate governance

Good Corporate Governance E

thic

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an

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eff

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tiv

e

lea

de

rsh

ip

Eff

ec

tiv

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ys

tem

s,

str

uc

ture

s a

nd

pro

ce

ss

es

Sy

ste

m o

f In

tern

al

co

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ol

an

d R

isk

ma

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Tra

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pa

ren

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Sustainability and performance management

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RG Mwai

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4.0. Governance role of the board

The governance role of the board is depicted in fig 4.1

Fig 4.1: Governance Role of the Board

Directors Role

and

Responsibility

Sets Strategic

Direction

Approves

policy and

planning

Monitors and

oversees

implementation

Ensures

Accountability

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R.G. Mwai

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Leadership and management are interlinked:

Leadership: policy guidance

Management: policy execution:

Effective leadership at board level finds expression in effective management

Managing for results

Sustainable results

The interlinkage between leadership and management is best illustrated in the optimal business model depicted hereunder (fig 5.1)

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5. Leadership and management

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Market environment and market share

Customer profile and base

Customer service standards

Revenue sources and market projections

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(5. Con’t)

Fig 5.1: Optimal Business Model

MARKET

CUSTOMER SERVICE

DELIVERY

(OPERATIONS)

HUMAN RESOURCES

FINANCIAL

RESOURCES

Production and delivery of services

Technical support services and Technology in service delivery

Processes and systems in service delivery

Staff numbers, competence and deployment

Training and development needs

Teamwork, motivation and productivity

Sources and disbursement of funds

Revenue yield and accountability for financial resources

Financial planning and control

POLICIES AND

SYSTEMS

Policies in key result areas (incl. governance)

Value chain analysis

Risk management and systems audit R.G. Mwai

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Lesser first day kind god us earth. The divide firmament signs

doesn't seasons heaven spirit open Yielding god hath waters

kind called doesn't shall winged. From firmament and, Yielding

god hath waters kind called doesn't shall winged. From

firmament and,

The board will provide guidance and approve policy in the key results areas

The management will execute policy as approved by the board

Leadership and management competence are therefore distinct complimentary

‘The Governance Profession’

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(5. Con’t)

Note

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board leadership has to be strategic

Identifying and articulating the strategic domain of the organization (mandate and mission);

Communicating a compelling vision of the organization

Planning how vision and goals are to be achieved (domain navigation)

alignment to environment – structure;

empowerment and motivation;

resource mobilization

Entrenching good corporate governance in the organization – ethical leadership

Nurturing a positive culture – results oriented

Leading change in the dynamic environment (based on the theory of change)

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6. Leadership and board effectiveness

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Scanning the environment

general environment – macro – economic variables: cost of doing business, devolution, policy orientation (the Big Four)

task environment: industry structure, competition, incentives (export subsidy)

Strategy implementation

appropriate structures

competence and capabilities

corporate culture

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7. Contemporary issues in board leadership

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8. Leadership role of the Board

Corporate culture (ethical

leadership)

Strategy (Pathfinding)

Structure (aligning)

Execution (empowering)

Learning (monitoring

and evaluation)

Adopted from: The 8th Habit – Steve Covey

Leadership effectiveness at board level is illustrated in fig 8.1

Fig 8.1: Board effectiveness

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Attributes of successful leaders:

Displays strategic perspectives

inspires and motivates – a compelling vision;

displays high level of integrity and honesty;

makes things happen – drive for results;

communicates powerfully;

builds high level of professional and technical expertise

develops others

builds relationships

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9. Effective leadership and effective leaders

Jack Zenger and J. Folkman

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THANK YOU

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