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Raising the ambition: Five capabilities for the independent director

Boards may have to make decisions before the data catches up

Boards must continually adapt and raise their ambition to navigate an unpredictable business landscape. Independent non-executive directors (INEDs) face the challenge of contributing meaningfully without overshadowing management. Performance is not a permanent state, and organisations must persistently evolve. A recent survey found that many directors believe at least one fellow board member should be replaced, indicating a need for stronger capabilities.

The role of an INED is to push organisations beyond protecting existing successes and into future growth. Four key capabilities distinguish valuable INEDs: stewardship, foresight, courage, and engagement. Stewardship involves making decisions today that may not yield immediate results, demonstrating long-term commitment. Foresight requires identifying risks and opportunities before they become apparent, challenging assumptions and exposing vulnerabilities.

Courageous INEDs speak up constructively, even when concerns may affect their own positions. Effective engagement involves leveraging personal networks and relationships to facilitate business development opportunities. Influence is built through credibility and trust, allowing directors to challenge the status quo when necessary.

These five capabilities are interconnected yet distinct, requiring continuous development to ensure an INED's contribution remains valuable.

Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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