The impact of board dynamics on shareholder value creation

Despite the lengthy processes used by most executive leadership teams to select individual members, a 2014 report (summarised here – by The Conference Board) has shown that the top team has a significantly greater impact on corporate financial performance than any individual director.

The research demonstrated a direct link between director characteristics (professional and social capital) and corporate profitability. However, the impact of the collective board behaviour was shown to have an 800% greater impact on a firm’s performance compared with that of individual directors.

In our experience, those teams that are called by a much greater purpose and legacy strive to create something unique – something that in parallel none of them would be able to do. One leader described it as the ability to ‘positively surprise each other’.

They create a way of being that is very difficult for their competitors to copy – it is unique to them and generates significant value and innovation to the organisation. At some point in their career most people have experienced this sense of being part of a high performing unit, but it’s difficult to explain exactly what caused it. Our six practice model looks at some of the conditions that need to be in place to allow high performance to emerge and flourish. Read more here