By Georgia Henry GAICD
Every board will experience shifts in dynamics, tensions in relationships, and challenges in navigating complex matters. In an environment where time is limited, the stakes are high, and there are many perspectives in the room it would be unrealistic to imagine board culture will always be optimised.
However, when board culture shifts from being effective and respectful to an environment where directors are not able to contribute at their best; it is likely that board culture issues have manifested into psychosocial safety risks that will impact the psychological wellbeing of directors.
Cultivating an effective boardroom culture is essential for mitigating the risks of psychosocial hazards. Building trusted relationships, creating an environment where everyone feels safe to contribute and challenge thinking, will enable the board to deliver excellence for the organisation.
The impact of your board culture, good or bad, will flow through the organisation you serve. It will show up positively or negatively in trust, confidence, alignment, engagement, and effort.
Board Culture
Boards operate in a way that is often not reflective of the organisation they serve. The culture and values that guide the organisation may not seem relevant in the boardroom and may be overlooked.
Unlike a work environment where culture is developed and reinforced daily, boards do not have that opportunity. For many boards directors meet regularly but infrequently and the opportunity for establishing trusted relationships is limited. The shift for many boards from meeting face to face to online meetings or a combination of both, has also impacted interactions, reading body language, developing relationships, and can limit the ability to contribute effectively.
Board culture is also impacted by the nature of board work. Board meetings are highly focused, with comprehensive agendas, complex issues to tackle, and limited time. Directors in this setting are accountable for achieving results, managing risks, and ensuring the organization's sustainability.
When boards are well organised, have alignment to purpose and vision, clarity of roles and responsibilities, and have created a psychosocially safe environment, this is an exciting and impactful place to be.
It is usually the presence of psychosocial hazards that negatively impact board culture and the psychological wellbeing of directors.
Psychosocial Hazards in the Boardroom
Psychosocial hazards are identified by Safe Work Australia “as anything that could cause psychological harm (e.g. harm someone’s mental health)”.
In the boardroom, examples of psychosocial hazards could include
Control or dominance by one or more board members
Dismissive or exclusionary behaviour
Lack of information sharing or support
Micromanagement
Manipulation
Disrespect
Bullying
Unmanaged conflict
Inappropriate behaviour and/or language
Lack of emotional regulation
Traumatic events
When these situations are unmanaged the impact can be significant.
culture deteriorates
the risks associated with psychological safety escalate
productivity and effectiveness decreases
the board and directors are failing to meet their duties and obligations to act in the best interests of the company (Corporations Act)
the board and directors are failing to meet their duties and obligations to eliminate or minimise the risks associated with psychosocial hazards (Model WHS Act)
Psychological Safety in the Boardroom
The impacts on board culture are different to organisational culture and when psychosocial safety issues arise it can be very difficult to address and resolve.
Psychological safety risks can appear as one-off events, be repeated behaviours or incidents, behaviours that worsen over time, be overt or hidden. They may escalate from unchecked behaviours or interactions previously thought to be acceptable.
Intentionally designing culture to create a psychologically safe environment and instil effective ways of working is the best way to proactively mitigate the risks that may arise from psychosocial hazards that may appear from time to time.
Strategies for Mitigating Psychosocial Hazards in the Boardroom
Lead by example: Board members should model psychologically safe behaviours by actively listening, encouraging diverse viewpoints, and responding constructively to dissenting opinions. This sets the tone for the entire organisation.
Establish clear expectations: Develop and communicate clear guidelines around respectful and inclusive behaviour in the boardroom. Emphasize the value of diverse perspectives and discourage dismissive attitudes.
Encourage speaking up: Actively solicit input from all board members, especially quieter ones. Make it clear that constructive criticism and dissenting viewpoints are valuable contributions.
Create a feedback and learning expectation: Foster an environment where board members can provide input on board processes and dynamics. Acknowledge that mistakes and learning experiences are valuable for collective progress.
Conduct regular assessments: Use surveys or other tools to measure psychological safety at the board level. Analyse results and take action to address any issues identified.
Provide training: Offer education to board members on psychological safety, its importance, and strategies to promote it.
Implement robust reporting processes: Establish clear procedures for reporting and addressing negative behaviours or psychosocial risks.
Promote work-life balance: Ensure reasonable workloads and expectations for board members.
Foster open communication: Create an environment where board members feel safe to express concerns, opinions, and ideas without fear of negative consequences.
Recognise psychosocial hazards: Be aware of potential risks like excessive workload, lack of control, or inadequate support systems that could impact psychological safety.
Ensure diverse representation: Include board members with expertise in people and culture issues to provide valuable insights on psychological safety.
Collaborate with management: Work closely with the CEO and executive team to align on psychological safety initiatives throughout the organisation.
HENRY REED is a highly regarded Culture & Leadership Consultancy supporting clients across Australia. Our partnership begins in the boardroom and supports every person in the organisation through culture audit, culture design, embedding culture, culture leadership, and turning potential into performance.
Contact Georgia Henry GAICD on 1300 266 995 for a confidential discussion about your culture needs, or book a time for an online meeting.