Some moments in business leave us with a lingering sense of discomfort. Perhaps an idea wasn’t fully explored, assumptions went unchallenged, or bias dominated decisions. These moments call for courage, a willingness to act despite fear or uncertainty. When board members fail to answer the call, significant consequences can result.
Take the case of the Boeing 737 MAX, when production deadlines and competition were prioritized over safety concerns. Despite internal warnings and two fatal crashes, tough questions went unasked and safety issues remained unresolved. Avoiding difficult conversations can have catastrophic consequences, and courage in governance is essential.
Courage in the boardroom is about taking action for the greater good, despite facing risks or challenges. It’s not just about individual bravery but about collective decision-making that drives organizations forward. Courage plays a critical role in the victories and innovations that shape industries and society. As board members, we must exercise four types of courage to govern effectively:
- Moral Courage: Aligning decisions with ethical principles and long-term social good, even when we face resistance.
- Disciplined Courage: Practicing strategic thinking and reflection, leading to thoughtful action rather than reactive decisions.
- Intellectual Courage: Challenging assumptions and integrating new insights from research or experience to expand our knowledge.
- Empathetic Courage: Staying open to others’ experiences and evolving our perspectives, resulting in deeper understanding.
These elements combine to form what I call a board member’s (and, collectively, a board’s) “courage quotient.” This metric reflects how well board members and the board collectively navigate challenges by leveraging different forms of courage. We must raise our courage quotient to meet the complexities of modern governance.
Strategic Challenges That Require Courage
- Environmental, Social, and Governance (ESG) Issues: With stakeholders divided on the scope and importance of ESG, boards must balance competing priorities and take decisive action amidst controversy.
- Cybersecurity: Cyberattacks are growing in number and sophistication. Boards must commit to conducting regular simulations and scenario-based training to enable swift remediation when data breaches happen.
- Board Diversity and Composition: Due to the politicization of diversity initiatives, boards must uphold the business case for diversity to acquire and maintain the necessary expertise for meaningful oversight.
- Risk Management: Pressures to deliver quarterly results despite ongoing economic volatility and geopolitical instability require board members to develop dynamic strategies to mitigate risk.
- Talent and Workforce Development: Boards must proactively manage succession planning and talent pipelines to ensure their organizations remain competitive.
These challenges require boards to reexamine their governance processes, think beyond conventional solutions, and explore innovative ways to engage with complex issues.
Building a Culture of Courage
To foster a courageous boardroom culture, directors must commit to personal and collective growth. Exercises to assess and develop your board’s courage quotient include:
- Evaluate how much moral, disciplined, intellectual, and empathetic courage your board currently demonstrates.
- Identify the level of courage needed to address the strategic challenges discussed.
- Consider the barriers preventing you and your board from exercising more courage and strategize ways to overcome them.
Boards that cultivate moral, disciplined, intellectual, and empathetic courage gain a competitive advantage, empowering them to navigate uncertainty and drive long-term success. Courage doesn’t guarantee immediate rewards, but it equips boards with the resilience and foresight needed to lead in an ever-changing world.
Courage is not a static quality but a dynamic capability that boards can develop and refine. By doing so, your board can turn courage into its superpower—a guiding force that ensures sound governance and sustainable growth. As we face intensifying strategic challenges, courage will not only be desirable but essential for board members striving to meet their organization’s challenges of tomorrow while staying true to its mission and values.
Dr. Keith D. Dorsey is author of The Boardroom Journey and equips directors and boards for effective governance.
