We have recently come to the end of a particularly poignant period for the nation, with the funeral of Her Late Majesty, Queen Elizabeth II, marking the end of the period of National Mourning. Few can have been left unmoved by the pomp and ceremony, the solemnity and dignity and the immense public reaction that we have observed during this period. It has certainly been a period of reflection for many.
Observing recent events, and reflecting on them, reminds us of some of most important tenets of corporate governance. Good boards and risk committees are always looking at improvement opportunities and there are some important reminders or lessons we can all take away in our roles as board members when reflecting on recent events. Here are our biggest learning points…
Boards are now giving succession planning more focus but we still see vacuums left behind in the event of unexpected departures (or even enforced ones). We have just seen a handover that has been as seamless as could have been imagined: the Queen earlier this year made clear the then Prince Charles would succeed her as our next monarch and he has followed up with clear messages of continuity. Is your organisation’s succession planning up to scratch and are messages strategically aligned?
All the talk in the corporate world is about purpose and we can have been left in no doubt about UK royalty’s ‘purpose’. According to a recent BBC report, King Charles has revealed much about what kind of reign he aspires to. “He has signalled to us in the clearest terms possible that this is a reign that will put the future of the Union - the integrity of the United Kingdom itself - at the heart of its concerns. In choosing to visit Edinburgh, Belfast and Cardiff, as well as return to London, King Charles has demonstrated how fully the Royal Family and household have understood the nature of the United Kingdom as a Union state - a partnership of nations”. Is your board’s statement of purpose sufficiently straightforward and clear to all your stakeholders?
Additionally, values are now a key focus area for many boards. King Charles III’s emotional initial speech to a nation in mourning made evident his promise to serve the people in a similar vein to the Queen and he vowed to make “loyalty, respect and love” the tenets of his reign. Is it time to revisit your organisation’s values to make sure they are fit for our times?
Transparency befits all organisations and we’ve all probably had more insight into the workings of the machinery of the monarchy and the workings of the state during the period of mourning than we previously ever knew. Through television and social media, much has been open for all to see and we now have a better understanding. Is your organisation’s governance sufficiently transparent to key stakeholders, both internally and externally?
Speaking of stakeholders, we have also seen a masterclass in stakeholder engagement. We don’t really need S172 to tell us we need to engage with stakeholders and consider their viewpoints when making decisions. It’s common sense. The new King visiting all four nations as his priority, the King and Prince of Wales meeting members of the queueing public and the Princes’ walkabout in Windsor are all good examples of this engagement. As the late Queen said early on in her reign, “A lot of people don’t come to London very often so we travel to them instead.” Does your board understand the benefits of effective stakeholder engagement and reaching out to them?
Of course, effective risk management has been at heart of all the ceremony – particularly on the day of the late Queen’s funeral, described as the one of the biggest diplomatic gatherings in decades and certainly the biggest security operation we have ever seen. There were about 500 heads of state and foreign dignitaries at Westminster Abbey as well as the Queen’s family, courtiers, public figures and UK politicians. A former Black Rod (the Queen’s representative in Parliament whose responsibilities included planning and organising the lying-in-state) said in an interview that plans are written, constantly reviewed and rewritten. So, extreme scenarios are thoroughly considered and rehearsals are undertaken. Nothing is left to chance. How confident are you in your company’s risk management arrangements and contingency plans?
ESG is a topic at the top of many boards’ agendas (even if many boards are still working out what they need to do). The King’s passion for the environment is well aired, as has been his devotion to his charities. But also very evident is the embracing of diversity and inclusion. As reported in the Conversation, the new King’s comments suggest that the title Fidei Defensor will be interpreted in more inclusive and positive ways, quoting him as saying… “The beliefs that flourish in, and contribute to, our richly diverse society differ. They, and our society, can only thrive through a clear collective commitment to those vital principles of freedom of conscience, generosity of spirit and care for others which are, to me, the essence of our nationhood. I am determined, as King, to preserve and promote those principles across all communities, and for all beliefs, with all my heart.” A lesson in there for us all when it comes to diversity and inclusion?
One of the biggest diplomatic successes of the Elizabethan era has been the growth of, and involvement with, the Commonwealth of Nations, highlighting the importance of people and culture. After achieving their independence, many former colonies nevertheless opted to continue their economic and cultural links with the UK. Their diversity is remarkable. And it was the foresight of our late Queen which helped to encourage the inclusivity of the Commonwealth club. The UK has led the world in bringing so many diverse nations together to share their resources and development and which has been a unique benefit not just to the UK but to the entire Commonwealth. How widely is your organisation casting its net to attract and foster talent from as wide a source as possible?
And reputation must not be forgotten. Though much of what we have seen during the period of mourning has been slick, polished and seemingly perfect (bar a few misfunctioning pens…), the announcement of possible redundancies at Clarence House could surely have been better timed? How mindful is your Board of the reputational impact of your organisation’s decisions?
So, in the context of recent events, there are certainly a few things for us all to reflect on in relation to the governance of our organisations. Ultimately, each Board has a leadership role and tone at the top and leadership behaviours are inevitably so important. As the late Queen famously once said, “I have to be seen to be believed”. Visibility is key and any effective board, too, needs to be seen to be believed.
Hanif Barma and Peter Neville Lewis are co-founders of the Risk Coalition. Hanif is partner at Board Alchemy, which undertakes reviews of board effectiveness and focuses on improving the performance of risk and internal audit teams. Peter is founder of Principled Consulting and advises clients on assessing and improving their corporate culture to benefit organisational performance.