Learning Exchange: Better Directors, Better Boards, Better Business
June 05, 2008
By Karen Brill
This month, Training magazine features an article on board training. I saw this as an opportunity to explore what's happening in the world of leadership at the highest level in the organization. After all, my impression of boards as a bunch of well-meaning establishment guys who smoke cigars (and I’m not alone in this visualization) couldn't be completely accurate, could it?
Meet Beverly Topping, president and CEO of the Institute of Corporate Directors (ICD), a Canadian organization offering director education and dedicated to developing "better directors, better boards, better business" in partnership with the Rotman School of Business. Topping, herself an entrepreneur and founding editor of Today's Parent magazine, was recruited as a director for Cara Foods and Canada Trust Financial Services in1994. Topping's experience as a board member opened her eyes to the need for director training.
"Generally people didn't understand governance," she explained. "After Enron, Worldcom, Andersen, there was a need to rebuild confidence in corporate leadership." Topping signed on to the ICD when it was a small network of well-meaning establishment guys who smoked cigars, with one part-time administrator and no office. A short five years later, the organization has 3,000 members; 1,700 graduates; and 18 employees, with the ability to deliver director education nationally.
I was impressed with the ICD's key competencies for director effectiveness, among them "knowledge of board and role," "thinking," "self-awareness," and, wait for it, "bias to learn." While the ability to monitor financial performance is still important, it isn't everything these days.
Directors-in-training face the same obstacles to learning as other adult learners. It has been a long time since they have sat in a classroom. They may experience uncertainty or disorientation in their new role as learners. As always, adult learning principles apply and form the foundation for delivery of the program.
ICD’s curriculum is divided into four modules delivered over four three-day weekends offered to current and aspiring directors. Innovative learning methods such as board simulations with scripts and real-time case studies where the CEO of the company being studied is present to offer feedback make up a highly interactive experience. The opportunity to form a community of business leaders is one of the key benefits of learning together.
Now the inevitable question you know is coming…what about return on investment? Does the approach of the ICD and similar institutions and business schools really make any difference to shareholder value?
"In fact, there are several research studies [including "An Empirical Study of Director Education and Its Impact on Director and Board Performance," by Michael Hartmann, University of St. Gallen, Graduate School of Business Administration, Economics, Law and Social Sciences, Toronto 2008; and "Corporate Governance and Firm Performance," by Brown & Caylor, 2004] that conclude there is a significant relationship between the level of director education, better corporate governance, and greater shareholder returns," offers Topping.
Do we dare believe that Canadian business is turning a corner toward a new age of well-qualified, trained, accountable directors? Did I mention that the ICD has a waiting list?
Until next time…
Karen Brill is a learning and development specialist in Toronto and a monthly contributor to Training.com. E-mail her at Karen.brill@rogers.com with your own questions, comments and ideas to share with our community of practice.
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