Often stakeholders in an organisation find themselves in a “stalemate” (impasse) situation. Why ? In my experience impasses mainly occur due to strong-minded stakeholders being unwilling to entertain the valid contributions/ input of other stakeholders. In reference to a blog that I posted yesterday, such strong-minded stakeholders tend to operate at a “subjective/ emotional” level and mostly with a mind to “please” others and raise their own popularity; rather than make rational and objective decisions which are in the best interests of the stakeholder population as a whole.
I have seen these impasse situations on a number of occasions over the years – mainly where governance decision-making is concerned among directors. I can’t overstate just how important it is that appointed directors be mature thinking people who have a broad base of life experience, who are capable of:
a) Viewing issues/ matters/ opportunities using “filters” (criteria) that are beyond their own personal values/ beliefs.
b) Accommodating the points of view of fellow directors.
c) Having their views (i.e. ideas) challenged constructively without taking personal offence, or becoming defensive.
d) Conceding on points they have made during director discussions – particularly where there are other ideas that are being introduced to discussion that have greater validity and/ or the potential to achieve greater positive results for stakeholders.
e) Not submitting to “sulking” when the Board makes its decision (formal resolution), and that majority decision isn’t reflective of what the minority felt was the best/ right direction to take.
f) Not undermining the Board after the Board has made its decision, and that decision has been communicated to all other relevant stakeholders. i.e. not speak in opposition to the Board decision to other stakeholders after the decision has been made (see the chapter in my first book which discusses how good governance practices can be achieved through the use of a “Board Code of Conduct” document).
Governance is a specialised area of adult decision-making. Good governance only occurs when mature people (directors) are prepared to make well-considered decisions on behalf of the wider stakeholder population outside their own self-interest. In order to arrive at such decisions it is inevitable and necessary that “compromise” (i.e. give and take) is practiced by directors. Organisations cannot evolve at a commendable rate unless compromise forms an inherent part of their decision-making processes and culture.