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What Does It Take to Transform Leaders into Next-Generation Board Members? Prasad Medury Answers
- Boards are diversifying and younger people are stepping more into board leadership positions, but inducting younger members can present certain challenges. According to Prasad Medury, Managing Director for India at Odgers Berndtson, new board members need to completely understand and implement governance principles and know how to represent all shareholders fairly and equitably. They should also have the skill to address governance issues and to encourage and motivate younger executives.
- One issue facing some boards is the age divide. Medury recommends that experienced professionals working with younger leaders should embrace agility and adaptability, recognize key objectives that younger members prioritize, such as ESG initiatives and diversity, equity and inclusion, broaden their horizons, and foster a collaborative mindset.
- To successfully transition to a board member role, younger executives should be aware of the significant differences in responsibilities and approach. Medury says they should develop skills like deeply understanding compliance and governance principles, as well as, ensuring that policies are fair and equitable to all shareholders, not just benefiting the majority shareholders or promoters.
- Additionally, they should be able to address governance challenges and be firm on principles like protecting the interests of all shareholders and ensuring ethical governance. They must avoid being dogmatic and limiting the exploration of diverse options and build a balanced team with a mixed set of skills and perspectives.
- Younger leaders need to embrace and implement mentorship programs that involve active listening, facilitating solutions, motivating, and inspiring confidence. It requires a shift from leading to enabling them to achieve their goals and cultivate a high-performance mindset, both individually and within their teams.
- Boards are inducting more tech-savvy members, especially in firms transitioning from traditional to D2C strategies, where they must optimize business models with technology.
- However, issues arise with inducting full-time executive board members elsewhere, who need a no-objection certificate from their current employer and have bandwidth concerns, as the role requires much more than attending meetings.
- Some companies are working to bridge the age gap between board members by embracing agility and adapting to the needs of younger members, who see DEI initiatives and ESG considerations as smart business decisions, which can enhance long-term business viability and stakeholder trust.
- Board members, both younger and older, must learn how to navigate change and transformation, which are inevitable and often disruptive to businesses, by cultivating a collaborative and adaptable mindset.
- Medury states that younger independent board members must view governance and compliance with fresh objective lenses and avoid dogmatism so that companies can thrive with a balanced mix of age-diverse members.
- Medury recommends that the older generation of board members embrace contemporary approaches to work and have an ongoing dialogue with younger members, who bring new energy and ideas to boardrooms.
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