Supporting a director and the logistics of managing their affairs requires a lot of attention. Janet Ashford and Paul Munden discuss the five things every assistant should know about their boss and the board
What kind of leader is your director?
Running a business in todayโs complex corporate world requires strong leadership. There is a range of management styles that a director can adopt and the one they choose may vary on a daily basis. As an executive PA, you need to fully understand your own bossโs technique in order to help facilitate their decision-making. Donโt be afraid to offer a different perspective and constructively challenge their approach if it is not appropriate for the given situation. Ask yourself, what is your directorโs preferred leadership style in the context of a crisis, period of stability and rapid growth?
Direction versus managing: what does a board of directors do and what should it delegate to management?
A common challenge for directors (particularly at executive level) is the ability to take a step back from the day-to-day running of the business in order to adopt a more long-term, objective and strategic stance. There is a difference between directing and managing a company and this is what distinguishes leaders from supervisors. The ability to delegate to others is an essential skill of the board, but they also need to work together effectively.
How does a board keep track of whatโs going on in the business without getting bogged down in unnecessary operational detail? The EA can play a vital role in facilitating the delegation process through effective communication and information flow, and strong stakeholder management.
Entrepreneurialism versus prudent control
Directors need to be entrepreneurial and take calculated risks in todayโs fast-moving global economy. So how can your director drive the business forward while exercising prudent control? In order to effectively support him or her, itโs essential to understand the governance structures, compliance and regulatory frameworks your board must work within. Leading a company exposes both directors and boards to conflicts of interest and authority dilemmas. A good assistant should understand the dangers and be able to recognise the early signs of board malfunction, burnout and overexposure to unacceptable risks.
Know your internal stakeholders
An EAโs network can be vast, so it can be difficult to know who your key stakeholders are and exactly what role they play. All boards are different and will vary in size and composition, depending on the type of company you work for and the industry you operate in. However, there are some critical ingredients that make for a more effective board that will help it strike the right balance between conformance and performance. A key initial question to ask yourself would be, how good is your relationship with the chairman of the board?
How to deal with conflicts of interest
All directors have a duty to avoid conflicts of interest, so it is important that management assistants recognise what can be considered as a conflict, and how it should be appropriately dealt with. Take a look at the following directorโs dilemma.
You are an executive PA to a board director of an art gallery. A fellow member has offered to include an item from her husbandโs collection in a high-profile exhibition. This director is offering to make the artwork available without charge to the gallery. However her husband could benefit financially if, as is likely, the piece increases in value as a result of the exhibition. He might later be able to sell it for a higher price. Your director has asked your advice as to whether there is anything the board should be concerned about.
In addition, some of the other board members have their own art collections. They all have prior knowledge of the exhibition programme and this could enable them to buy works or items at favourable prices, knowing their value will increase as a result of the exhibition. This is a problem of ethical integrity and you have to ask yourself if their actions could compromise the reputation of the gallery.
Janet Ashford and Paul Munden are course leaders for the โRole of the Executive PAโ programme at the Institute of Directors, designed for PAs working for directors, business leaders and other executives at board level. Find out more at iod.com
