Psychological Safety in the Board of Directors

You may be familiar with these situations: You present your arguments to the Board of Directors (BoD) and no sooner have you finished than a big BUT comes from an internal perspective that makes you look incompetent? Or… the BoD decides on a strategically important topic in a hurry because the agenda is too tight? Or… you have a lively discussion and at the end the Chairman summarizes that his opinion is valid?

These are just a few of the many examples we have heard from BoD members in recent months. Although they are on the BoD and bear responsibility, they can hardly get involved. This leads to dissatisfaction and also to poor decisions on the board. The reasons often lie in the dynamics on the BoD and in the personality who leads the BoD: the Chairman or Chairwoman (BoD).

The role of the Chairman of the Board of Directors

The Chairman is primarily responsible for the legally compliant functioning of the BoD. As a minimum, he/she sets the topics for the meetings (agenda), ensures the follow-up of pending matters, defines the processes of the BoD, leads the discussion in such a way that the focus is maintained and decisions are made, and takes care of the values of the Board and the “Rules of Engagement”.

The last point in particular, the values and rules for interaction within the BoD, can be practiced in very different ways. Ideally, the Chairman stimulates a focused discussion and ensures that everyone participates within the given time frame. In doing so, he/she promotes true commitment and trust within the BoD, i.e. psychological security. But what exactly does this mean in the context of a board?

A team that hardly knows each other

Board members only see each other a few times a year, so they are a team that usually hardly knows each other. The meetings are characterized by formalities and it is clear to everyone that the Chairman and the CEO, who is usually present, have a major information advantage. Just as in other groups, there are motives for not wanting to make a fool of oneself and preferring to remain silent rather than talk if one feels insecure. However, this is precisely not the role of the BoD.

The moderation by the chairperson makes the difference here: all questions on the topic are allowed, perseverance, mutual respect and constructive dissent are encouraged. It is therefore a good thing if not everyone is immediately of the same opinion or asks well-behaved questions. Such discourse leads to real consensus and clearer decisions, which are then actually supported by all members.

Basics of the Board of Directors culture

Ultimately, such a culture of the BoD begins with its composition. Is there diversity on the board and how is this dealt with? It continues with the introduction of new members. Are not only technical topics taught here, but also explicitly cultural ones, such as the “Rules of Engagement”? It is equally important that the BoD has the opportunity to exchange ideas outside of meetings and get to know each other privately, which increases trust.

However, joint reflection is also important within the meetings, either spontaneously or on the basis of an evaluation. Central here too: Openness and trust. If the BoD treats each other in this way, it not only makes better decisions, but also reflects on the company as a role model and strategic partner. Viewed in this way, psychological safety in the BoD should be a goal for all boards.