Yesterday I attended an interesting seminar on research currently being conducted at QUT's Australian Centre for Philanthropy and Nonprofit Studies on board behaviour.
Early research indicates, perhaps counter-intuitively, that the board members who are the least informed on particular topics (such as financials) are often the most instrumental in facilitating discussion on said topics.
Why? Because in their (relative) ignorance, they are the ones most likely to ask the most questions, including the basic questions others might be too afraid to ask.
This interesting finding was paralleled with rulings from the recent Centro case, where it was found that the company's board members had failed to ask the right questions (if indeed any questions) regarding pivotal items.
Happily, the judge also indicated that board members in general could not be reasonably expected to know everything. To overcome their imperfect understandings, they are however expected to ask and ask again, until clarity arrives.
So although a reasonable level of knowledge is expected of board members, it would seem the capacity to ask questions - particularly when something doesn't feel right - is key.
The trick then is ensuring all board members speak up or, if reluctant, are empowered to do so.
In the Nonprofit Assist governance workshop The Philosopher in the Boardroom, each session starts with a simple list of eight 'Rules of Engagement'. One of the key premises of these guidelines is that it is the responsibility of each group member to participate in the session, and to know that if they don’t, they are making the group less.
The purpose of the workshop is to provide participants with a lived experience of group harmony - often strikingly absent at boardroom tables - whilst building on their knowledge of nonprofit governance.
The guidelines work a treat in terms of generating meaningful and calm discussion and can be referred to as many times as needed.