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Season 5 is live! New episodes every Monday and Thursday. This season, we’re exploring questions that directors need to *answer*. Are you a director, senior executive, investor, or someone who’s just curious about corporate governance? Tune in for insights about how things work inside and outside the boardroom, based on 20 years of experience and interactions with thousands of directors from around the world. Each episode lasts about one minute and will provide you with questions to ask yourself, your board and your management team, designed to optimize the way your organization makes decisions. Matt Fullbrook is a corporate governance researcher, educator and advisor located in Toronto.
Episodes
Thursday Oct 19, 2023
200. None of your business (Condition #48: Side conversations)
Thursday Oct 19, 2023
Thursday Oct 19, 2023
Because of the accidental bonus episodes I mentioned last episode, here we are at episode 200 (yay!) but we still have this one and two more to go this season. Here we go: Many of the boards I’ve met feel more than a little anxiety about conversations that happen outside of the confines of the on-the-record parts of board meetings. You know what I’m talking about. “Look at those three over there: always gossiping about something.” And it’s true! Side conversations can be exclusionary, faction-forming, and suspicion-arousing. But they’re also entirely unavoidable in a normal human environment. When people are together, they tend to group and hang out and chat. Can we all accept that it’s not an inherently bad thing. The problems come from information asymmetry, relationship asymmetry, exclusion – intentional or otherwise – of specific individuals, and the potential for inscrutable deal-making. It’s obvious how all of these things can impact decisions. The most important first step is to, like, actually talk about this stuff. Concerned about something? Say so – without accusing anyone of anything, please. Feeling left out? Say so – again, without accusation, please. Have some ideas about how to manage or bridge the potential problems? I promise you there are others in the room who want to hear them. Want some other ideas, check out the article Back Channels in the Boardroom by Gardner and Peterson in HBR September 2019. Just promise me you won’t let things fester.
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