Boards grounded on Purpose

Experience a powerful fireside chat as Milton Nkosi, the apartheid child who transformed Africa’s narrative, sits down with Priscillah Mabelane, the trailblazing leader who made history as the first woman to head a multinational in South Africa’s oil industry.

 

Join Elias Masilela, Chair of MultiChoice South Africa and a seasoned executive, for a transformative masterclass on purpose-driven board leadership. With his wealth of experience, Masilela will explore how aligning leadership with a strong sense of purpose enhances decision-making, fosters ethical governance, and drives long-term value for stakeholders. Through engaging discussions and real-world case studies, discover how to build sustainable organizations, create social impact, and ensure governance structures serve both business and society effectively. Empower yourself with insights to bring purpose-led strategies into the boardroom and drive meaningful change.

Miton Nkosi interviews Priscillah Mabelane

Priscillah suggests that while climate change is critical for many entities, the approach to board committee structures should be tailored to each company’s circumstances. She advocates for fewer, but more robust and comprehensive committees with clear terms of reference, content, and discussions. Integration is key to ensure that climate-related issues are considered alongside social and ethical implications, as well as capital and resource allocation. Her experience indicates that the Social and Ethics Committee, with the right skills and mindset, can effectively integrate climate change considerations into broader strategic discussions, promoting a more holistic and responsive approach rather than creating isolated subcommittees.

Priscillah describes this situation as potentially lonely and seductive, highlighting the ongoing lack of substantial female representation in organisations. While acknowledging the personal significance of breaking barriers, her primary focus on the board is the success of the company. However, she believes that her presence and actions should contribute to advancing the development of women by “walking the talk,” addressing cultural issues that hinder women’s progress, and being willing to take risks on talented women. She emphasises the importance of courage, clear ethical boundaries, and the need for women in leadership to sponsor and mentor other women, advocating for them even when they are not present.

Priscillah acknowledges that such comments, though said in confidence, reflect a prevalent societal bias. She suggests that while some individuals may not be adequately prepared, this is not exclusive to women. However, due to fewer women in such roles, failures can be disproportionately scrutinised. To combat this, she stresses the need for women on boards to be highly effective, well-prepared, and to carry a significant load. Authenticity is crucial, and women should not feel pressured to behave like men to be heard. Instead, they should leverage their unique skills and perspectives, building alliances and leveraging different board members to ensure their message is conveyed effectively. Preparation, competence, and a willingness to challenge constructively are vital.

Priscillah differentiates between role models and sponsors. Role models provide inspiration through their attributes, but no single individual can embody everything one needs. She advocates for a “portfolio of networks,” comprising individuals with diverse strengths and experiences who can collectively serve as role models. Sponsors, on the other hand, are crucial advocates who actively support and promote one’s career progression, often speaking on their behalf and providing honest feedback. She highlights the significance of having sponsors throughout one’s career, from early influences like her grandmother and father to professional mentors and board-level advocates. This network provides diverse perspectives, support, and guidance, fostering resilience and confidence.

Mabelane emphasises that valuable insights and wisdom are not exclusive to those in executive or leadership positions. Individuals from all walks of life, such as drivers and community members, possess “common wisdom” and unique perspectives shaped by their experiences. Engaging with these diverse viewpoints can provide board members with a more grounded understanding of societal challenges, cultural nuances, and the broader impact of their decisions. It encourages a more holistic and human-centred approach to leadership, reminding board members that learning and growth can come from unexpected places and that true leadership can manifest in various forms.

Priscillah believes psychological safety has two key aspects. Firstly, fostering an environment where the executive team feels safe to be transparent and open, ensuring that challenging discussions are balanced with trust and mutual respect. This involves building relationships and providing constructive feedback. Secondly, creating safety for board members themselves, where diverse values and perspectives are valued and leveraged. This involves encouraging everyone to speak, valuing different areas of expertise, and ensuring that decisions are made collectively and supported afterwards. An effective chair facilitates open dialogue, encourages participation from all members, and ensures a balance between challenge and support.

Priscillah suggests that while industry experience can be valuable, highly successful boards typically comprise a diverse range of competencies, including technical, business, and behavioural skills. When considering a board role, individuals should assess their unique value proposition beyond just industry-specific knowledge. Expertise in areas like social dynamics, technology (even if not directly their industry), or leadership can be highly beneficial. It’s important to understand what skills and perspectives one brings to the table that will contribute to the company’s success, rather than limiting oneself solely to familiar sectors. A well-rounded board benefits from a variety of experiences and viewpoints.

Priscillah acknowledges the reality of women not always supporting each other, suggesting that it can be more challenging when representation is limited. She believes societal structures can inadvertently create competition or a “celebrity” culture around a few female leaders. To foster stronger support networks, she advises women to identify and align with individuals based on shared values, regardless of gender. While acknowledging the importance of female solidarity, she highlights that her own career has been significantly supported by male sponsors who shared her values. She encourages women to be courageous in supporting each other, offering constructive feedback, and actively mentoring and sponsoring emerging female talent. Ultimately, she believes the purpose of leadership should be to uplift others and leave a legacy of growth and opportunity for future generations.

Masterclass by Elias Masilela

The fundamental principle is to be grounded in purpose, which transcends personal gain. Board members should act as custodians of good governance, prioritising the interests of the entity and its stakeholders above their own. This is akin to the principle of looking after someone else’s property better than your own.

Elias outlined several crucial principles, including honesty and integrity (the bedrock of trust, enabling transparent actions), professionalism (serving the community with principle, objectivity, and fearlessness, even at the risk of one’s position), and understanding the interplay between organisations and their incumbents (recognising that even well-designed institutions can fail with the wrong people at the helm). These principles are vital for building trustworthy and effective organisations.

The primary motivation for serving on a board should not be financial. Instead, individuals should be driven by a desire to serve others, contribute their experience and skills, and act as custodians of good governance. Board membership is about looking after the interests of the entity, not personal gain or the interests of those who may have nominated you.

Counterparty risk, the risk associated with trusting another human being, is often underestimated. The COVID-19 pandemic illustrated this, where a lack of trust in individual behaviour necessitated strict measures like lockdowns. In a boardroom context, this highlights the inherent risk in relying solely on the trustworthiness of individuals and the importance of robust systems and processes.

The ultimate incentive for a professional should be the growth of welfare around them. It should not be driven by personal ambition for money, power, or fame. A true measure of leadership is when the focus is on the collective success and well-being of others, rather than the individual leader’s recognition.

Conflict is considered inherent, and the critical aspect is how it is managed. Board members should identify and declare any potential conflicts of interest openly. Failure to declare a conflict is a significant breach of governance. Even if a declared conflict is managed poorly, it is often more forgivable than an undeclared one. Process and transparency in managing conflicts are paramount.

Dominance on a board can arise from various factors, including an individual’s subject matter expertise, thorough preparedness, extensive experience, institutional memory, over-reliance on certain individuals, or the influence of major shareholders. While a benevolent form of dominance can be beneficial, unchecked dominance can stifle dissenting opinions and lead to poor decision-making. It is crucial for all board members to maintain their objectivity and challenge decisions when necessary, potentially through a Minority Report if fundamental disagreements persist.

When considering joining a board, it is important to look at the board’s activity level, typically reflected in the number of meetings per year. An unusually high or low number of meetings can indicate underlying problems. The tenure of existing board members is also a factor, as longer tenures can sometimes impact independence. Ultimately, one should assess whether they can effectively contribute their honesty and integrity to the board and whether the board’s purpose aligns with their own values.

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Dr Lindie Grebe

Senior Lecturer, College of Accounting Sciences, University of South Africa

Dr Grebe is a chartered accountant and senior lecturer at the University of South Africa (Unisa). 

 

She teaches postgraduate accounting sciences through blended learning using technology in distance education, and through face-to-face study schools throughout South Africa. During her employment at Unisa, she also acted as Coordinator: Master’s and Doctoral Degrees for the College of Accounting Sciences (CAS), chairperson of the research ethics committee and chairperson of the Gauteng North Region of the Southern African Accounting Association (SAAA). 

 

Before joining Unisa as academic, she gained ten years’ experience in audit practice and in commerce.