Too often chief executives decide not to develop their trustee boards, which according to Grant Taylor is a grave mistake. 

Building an effective, successful and dynamic board of trustees is no mean feat. Every organisation has different needs and therefore, each board should be unique. There is no one-size-fits-all formula.

Many chief executives like the support of an effective board as they can feel more secure and confident in their decisions and less lonely in their senior position, but I also believe that some CEOs in the sector prefer not to develop their board to be as effective as possible so that they can ‘manage’ it and the decisions it makes.

Building and maintaining a high-performing board takes time and effort and many CEOs don’t see this as time or resource well spent. If an organisation has a powerful and innovative board, the CEO will be challenged more frequently and the organisation’s performance scrutinised more keenly. This can be extremely motivating and may drive higher performance, but not everybody welcomes the pressure that comes with high expectations.

I often see boards populated by trustees who are either not able to provide appropriate challenge or are disempowered from doing so. The reasons behind this are often complex but unfortunately, many CEOs let this situation persist because it makes it easier for them. Many CEOs haven’t yet woken up to the power of having a brilliant board and ultimately the impact that can have on their performance, their career, and ultimately the organisation’s outcomes.

In running my own company I have volunteer advisers who are people drawn from a range of sectors and backgrounds who bring new ideas, stretch the ideas we already have, and frankly provide inspiration beyond our realm of thinking. Who wouldn’t want something similar for their trustee board?

According to a report, Birth of a charity by the Charity Commission, a third of new charity register applicants claimed that their organisation did not offer training and support to trustees. Trustees need to be clear about what is expected of them and be accountable for their performance. An opportunity to review their contribution and see if their skills and experience are being utilised appropriately, is essential, even if only reviewed on an annual basis.

Trustees also need to understand what constitutes appropriate behaviour, including listening (a lot), not promoting a personal agenda, not speaking for the sake of speaking, and ensuring that they question what they don’t understand. If we get this right, a diverse board of trustees with each member understanding their role, its boundaries and who possess the appropriate skills, experience and behaviours, is a thing of beauty.

But, a diverse range of opinions and perspectives from people with a wide range of relevant experiences who are recruited and inducted well, managed well and who are able to have their contribution recognised effectively is hard work to achieve. It requires a strong and experienced chair, a supportive CEO and an ongoing commitment to trustee development and team-building.

How many CEOs want to invest that much in their board of trustees? I think more should.

Grant Taylor is a partner at Peridot Partners