Ask Marcia Leadership Q & A

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From her column in the Silicon Valley Business Journal | Email newsletter - May 13, 2020

Please Share this with Board Members you know. Let’s help each other!

Q: What is the Board of Director’s role as this pandemic unfolds and looks to be a disruption in our lives for months to come?

A:  There are a variety of Boards from large corporate boards to small non-profit boards.  Some are solely focused on their fiduciary and policy-making responsibilities. Others are hands-on Board members who are intimately involved in committees and working closely with staff members. In a crisis situation, a Board of Directors plays a crucial role.  As events with the crisis changes day to day, the Board’s role is to pivot and adapt its leadership, communication, and collaboration. The Board has to reflect on its own strategic thinking and leadership. As one voice, they need to give guidance to the CEO and the organization’s leadership team. 

Needs

In a crisis, the Board needs to understand and ensure that:

  • The CEO and leadership team have a realistic grasp of the issue facing them

  • They are addressing it and are not in denial or receiving bad data

  • If the organization has to drastically pivot and adapt to be safe and healthy or to serve clients, or to stay solvent, it is capable of rapid decision-making

  • Leadership is anticipating various scenarios about the impact of the crisis on the business and steps are being taken to mitigate the risks and preserve the organization

  • Any necessary coaching, mentoring, or team development needs are met.

Decisions

The Board needs to make the best fiduciary and policy decisions for sustaining and ensuring the survival of the enterprise and its ability to achieve or modify its aim. The Board communicates with leadership to provide necessary guidance or support of the staff for adjustments to the strategies and projects.

Policies

With a further vision in a crisis (it may be a month or a year), the Board needs to vigorously do its own work. It may need to continually review its policies and procedures and create new policies and protocols as the crisis unfolds. It may need to develop deeper policies about employee and customer safety. 

Opportunities

It may be a time to consider new investments, acquisitions, or sales. The Board examines the organization’s budget, its cash position and stability.  If the organization is in need of cash immediately or soon, where will it come from?  What are the alternatives? What’s the valuation that can impact equity incentives? If cash is low, how will the organization retain its employees? What are the options? What are the values of the organization and how do they impact the decisions the organization will make and the legacy they want through this time?

Board leadership and direction is essential. Collaborating with the organization’s leadership to serve its employees, and its customers or members is the higher order of business. In a crisis, leaders must have the capability to pivot and create a new future for the organization.