Chair of the Future Accelerator of change - Deloitte

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Chair of the Future Accelerator of change - Deloitte
Chair of the Future
Accelerator of change
May 2021
Chair of the Future Accelerator of change - Deloitte
Chair of the Future – South Africa 2021 |
                                                                                  Accelerator of change

Contents
Foreword                                               03

Black swan events are increasing the pace of
change and shifting priorities                         04

The five dimensions of the Chair of the Future         14

Ten pieces of advice to the Chairs of the Future       20

Looking ahead                                          22

About this research                                    23

Endnotes                                               23

Contacts                                               24

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Chair of the Future Accelerator of change - Deloitte
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                              Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                      Accelerator of change

                                                                         Foreword
                                                                         Welcome to the first edition of the Chair of   onto the next generation of leaders
                                                                         the Future – South Africa. This report forms   to help them to build more resilient
                                                                         part of an international series of reports     organisations and a just society. I was
                           When we embarked on this journey              and is based on interviews with Chairs and     excited to hear strong commitments to
                                                                         non-executive directors (NEDs) of leading      skills development and talent development
                           late last year, I could have not imagined     companies operating in South Africa.           and enjoyed the frank conversations about
                                                                                                                        diversity and social responsibility. These

                           the support we would receive from             When our colleagues in the United
                                                                         Kingdom (UK) released their first Chair of
                                                                                                                        conversations made me confident that
                                                                                                                        many organisations in South Africa are in

                           so many leading Chairs and their
                                                                         the Future report in 2017, the world was a     good hands.
                                                                         completely different place. By the time I
                                                                         was appointed Chair of the Deloitte Africa     My goal for this project is to kickstart
                           willingness to participate in this project.   Board in 2020, the world was in the midst      conversations about building and growing
                                                                         of a global pandemic. Navigating this          the Chairs of the Future. We at Deloitte are
                           I am very grateful to my fellow Chairs        pandemic has probably been the greatest
                                                                         test of any leadership team and it has been
                                                                                                                        committed to support Chairs in building
                                                                                                                        a platform that will allow them to identify,
                                                                                                                                                                         Ruwayda Redfearn
                                                                                                                                                                         Chair of the Deloitte Africa Board

                           who made the time to share their              no different at Deloitte.                      grow, and empower the next generation
                                                                                                                        of leaders, and in driving excellence in the

                           experience and knowledge with us.
                                                                         The pandemic has shifted priorities.           boardroom.
                                                                         It has made us reflect on the way we
                                                                         run companies, particularly on the             When we embarked on this journey late
                           We thank the contributing Chairs for          responsibility we as corporate South           last year, I could have not imagined the
                                                                         Africa have to society and our staff. It       support we would receive from so many
                           their commitment to mentoring and             has shone the spotlight onto the many
                                                                         socio-economic challenges with which
                                                                                                                        leading Chairs and their willingness to
                                                                                                                        participate in this project. I am very

                           supporting the Chairs of the Future.          South Africa grapples, including high
                                                                         unemployment, and unacceptably high
                                                                                                                        grateful to my fellow Chairs who made
                                                                                                                        the time to share their experience
                                                                         levels of inequality and poverty.              and knowledge with us. We thank the
                                                                                                                        contributing Chairs for their commitment
                                                                         However, I am encouraged by the                to mentoring and supporting the Chairs of
                                                                         conversations we have had with Chairs          the Future.
                                                                         of leading companies. I sense that these
                                                                         Chairs have a strong willingness, in fact,     I hope you find the Chair of the Future –
                                                                         a sense of passion and purpose, to             South Africa useful and I look forward to
                                                                         contribute to our society and to ensure        your feedback.
                                                                         that their skills and experience are passed

2                                                                                                                                                                                                                         3
Chair of the Future Accelerator of change - Deloitte
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                                                    Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                                            Accelerator of change

Black swan events
are increasing the
pace of change and
shifting priorities
Navigating uncertainty                                                                              While the Covid-19 pandemic is hopefully            World Uncertainty Index – 1990Q1 to 2020Q4
                                                                                                    a once-in-a-lifetime event, it would be
is a critical leadership                             “The pandemic has emphasised
                                                                                                    negligent and irresponsible for Chairs
                                                      that the world has been ill-
skill. While organisations                                                                          to assume that this is the last global              60 000
                                                      prepared although we were                     pandemic or black swan event. Therefore,
prepare for known and                                 forewarned.”                                  it is crucial that Chairs drive a culture of risk
unknown risks, dealing                                                                              sensing and actively encourage scenario             50 000
                                                                                                    planning to increase the preparedness
with so-called black swan                             A key element of a black swan event,          of their organisations to deal with future
events is the true test of                            such as the global COVID-19 pandemic,         shocks and the impact of climate change.
                                                                                                                                                        40 000
                                                      is the increased level of uncertainty and
leadership. According to                              ambiguity. As infection numbers have
the World Uncertainty                                 increased and governments across the
                                                      world have introduced measures to deal        “The Chair of the Future will                       30 000
Index,1 global uncertainty                            with the pandemic, companies have had to       need to manage two things:
has been relatively high for                          continuously respond to this ever-changing     firstly, ambiguity and secondly,
                                                      operating environment, changing the
about 10 years. However,                              demands on and the role of Chairs.
                                                                                                     uncertainty.”                                      20 000

COVID-19 has pushed
                                                      While certain changes to the role of boards
uncertainty to new levels.                            and Chairs had already started to emerge
                                                                                                                                                        10 000
                                                      prior to the pandemic, COVID-19 has acted
                                                      as an accelerator of change. As much as
                                                      COVID-19 has been devastating from a                                                              0
                                                      social and economic point of view, it has                                                                      1990     1992      1994     1996     1998      2000      2002   2004   2006   2008   2010     2012     2014      2016     2018     2020
                                                      also acted as an accelerator, fast-tracking
                                                      change, and having a major impact on
                                                                                                                                                        Source: Ahir, H, N Bloom, and D Furceri (2018), January 2021 update
                                                      board agendas, shifting priorities to areas
                                                      previously regarded as “less important”.

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Chair of the Future Accelerator of change - Deloitte
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                                    Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                            Accelerator of change

Becoming increasingly hands-on                                                                                                                More time-consuming and demanding
                                                      Being more actively involved in the                                                                                                        As a result of the increased demand           As NEDs seem to be less likely to hold
“What can go wrong with Chairs                        business is beneficial to Chairs as they feel   “In the US, they want you to            “I am available 24/7 to EXCO,                      on Chairs and NEDs in terms of time           multiple NED roles at listed companies, the
                                                      it provides them with more insights into                                                                                                   allocation, it seems to have become less      pool of future NEDs and especially future
 is that they may struggle to know                                                                     have skin in the game. And King         interact with the CEO regularly
                                                      the state of the organisation and more                                                                                                     common and attractive for NEDs to be on       Chairs needs to be expanded. Many of
 where to stop and that they                          opportunities to offer better guidance and       doesn’t want you to have skin in        via phone, WhatsApp, etc. at any                  multiple boards or to chair more than one     the Chairs report that they prefer to “grow
 get too involved in day-to-day                       expertise to the executive team on a more        the game. These are concepts            time. It’s the nature of the job.”                board. Currently, less than one-third of      their own timber” when it comes to filling
 business.”                                           regular basis. This on-going engagement          which have to be revisited. I                                                             Chairs of JSE Top40 companies sit on more     leadership positions in their organisations.
                                                      with various parts of the business also                                                                                                    than two boards of listed companies and       This poses the important question of what
                                                                                                       struggle with the idea that you        The move towards being more hands-
                                                      enhances the quality and depth of                                                                                                          none of these Chairs sits on more than        role Chairs will play in developing future
Given increased uncertainty, the                      information on which the NEDs will have to       are either NED and governance          on and the need for more frequent                  four boards of listed companies.              board talent. One potential solution to
rapid advancement of disruptive                       base their decisions and guidance.               is stronger, or you are executive      engagement with the rest of the board                                                            expanding and developing future board
                                                                                                                                              and the executive team is reflected in the                                                       talent is to encourage executive and
technologies and the growing complexity                                                                Chair and the governance is                                                              “Being an NED is not a quarterly
of organisations and markets, many                                                                                                            time Chairs allocate to fulfilling their role.                                                   senior management to seek out board
                                                                                                       weaker.”                               This does not necessarily mean that there          engagement anymore, but you
Chairs feel that they have had to become                                                                                                                                                                                                       opportunities in non-competing industries
                                                     “In South Africa you find politically                                                    are more frequent formal board meetings,
more hands-on, to support their                                                                                                                                                                  have to dedicate more time                    and, in so doing, gain experience as an
organisations’ efforts to navigate these              well-connected people as                                                                but rather that there is increased demand                                                        NED. However, this needs to be managed
                                                                                                      “I think a chair needs to be much                                                          to make sure you get into the
new circumstances. Most Chairs feel that              chairs. But this does not really                                                        for formal and informal communication                                                            carefully to avoid a shortage of executive
                                                                                                       more involved. You can’t be a          between the Chair, the board, and the              zone of the managed trusted                   leadership talent, as seen already with
there is a fine line between being hands-on           help. Going forward, this will
as a Chair and being an executive and that                                                             faraway figure head. You need          executive team.                                    relationship. Making sure that                the limited availability of black female
                                                      cripple businesses. You want a
they must tread carefully in this regard.                                                              to understand the business                                                                the Executives are not running                leadership.
Chairs need to remember the ultimate role             businessperson to be a chair                                                            Several Chairs attend committee meetings,
                                                                                                       you are involved in. You are           with some trying to attend all committee
                                                                                                                                                                                                 away with decisions without NEDs
of an NED, which is to provide oversight,             because they understand the
                                                                                                       not effective if you only know         meetings. While Chairs believe that it is          knowing about it.”                           “In the past you had five or more
to challenge, and to guide the executives             business world.”
by leveraging their experience and skills. A                                                           how to run boards... You will          beneficial for them to attend committee                                                          NED roles, but now I think three
hands-on approach must not be confused                                                                                                        meetings, this has also increased the time                                                       is enough or four maximum,
                                                                                                       be able to fulfil your role better     they spend on preparing and attending
with assuming an executive role and with              Gone are the days when Chairs dropped                                                                                                                                                    especially if you chair a sub-
                                                                                                       because you know the nuances           meetings.
getting operationally involved. Hands-on in           in for quarterly board meetings and
                                                                                                       of the operations, etc. It’s an all-                                                                                                    committee. So, for the few
the context of a Chair means maintaining a            an annual strategy session and then
current view of not only the business, but            disappeared for the rest of the year. Going      encompassing role.”                                                                                                                     people there are, their dance
also the environment within it operates.              forward, Chairs will continue to be hands-                                                                                                                                               cards are full.”
                                                      on as they will need to have their fingers
                                                      on the pulse of the organisation not only to
                                                      guide and advise the executive team, but
“The next generation of Chairs                                                                                                                Number of additional NED roles in listed companies of JSE Top40 Chairs
                                                      also to better hold them accountable. The
 have to be knowledgeable and                         Chairs of the Future will need to have an in-
                                                                                                                                                                  14                                 14
 really know the business, not just                   depth understanding of the organisation,
                                                                                                                                                                                                                                      9
 [be] figure heads. In the past they                  combined with an agile mindset that allows
                                                      them to effectively navigate unchartered                                                                                                                                                                               3
 perhaps have been guilty of being
                                                      and uncertain waters.
 figure heads.”
                                                                                                                                                                   0                                  1                               2                                      3

                                                                                                                                              Source: Deloitte calculations based on Who Owns Whom

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Chair of the Future Accelerator of change - Deloitte
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                                         Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                                 Accelerator of change

Creating diversity – the right thing to do
                                                                                                                                                      While progress in terms of diversity of
                                                      diversity has developed into a business          range of perspectives and new ways of                                                           Gender of JSE Top40 Chairs
                                                                                                                                                      boards has been made in recent years,
“Quite simply, you won’t have a                       imperative and is regarded by many the           thinking. Considering increasing complexity
                                                                                                                                                      the JSE Top40 are yet to reflect the
                                                      “right thing to do”.                             and heightened uncertainty, boards can
 successful company if you don’t                                                                                                                      demographics of South Africa. Only half of
                                                                                                       leverage different perspectives and ways of
 have a diverse board… We need                                                                         thinking to increase the resilience of their
                                                                                                                                                      the JSE Top40 companies are chaired by                      20%
 to be bolder about bringing in                      “If you only have 30% females                     organisations.
                                                                                                                                                      Black Chairs and only one-fifth are chaired
                                                      on your board, you are missing                                                                  by women.
 younger people who bring the
 diverse skills sets needed in the                    some big things and some                                                                                                                                                 Male
                                                                                                       “You need to start opening                     In recent years, the concept of diversity                                                   80%
 boardroom.”                                          potential firepower. So, it’s very                                                              and its definition have broadened. Chairs
                                                                                                        yourself for not just a culture                                                                                        Female
                                                      important to have diversity on                                                                  increasingly look beyond racial and gender
                                                                                                        fit. If he/she is not a fit, you
                                                      the board, to bring the very best                                                               diversity in their boardrooms. Many Chairs
Given South Africa’s history, diversity in the                                                          need to ask yourself, “Are you                agree that experience, which often comes
                                                      to the company.”
workplace and on boards has been on the                                                                 tolerant enough? Are you open                 with age, is a key part of being an effective
agenda for many years. However, several                                                                 for disruption? Are you open to               NED and Chair. However, some Chairs
Chairs observe that conversations about                                                                                                               argue that young NEDs add a unique
                                                      There is consensus among the Chairs               someone who doesn’t look like,
diversity have changed in recent years. In            that having a diverse board that better                                                         perspective to the board, especially in
the past, meeting diversity requirements                                                                doesn’t dress like you, doesn’t               organisations where a large share of the         Race of JSE Top40 Chairs
                                                      reflects South Africa’s demographics is
was often seen as a “cumbersome tick-                 beneficial for organisations. Diversity in        speak like you?”                              customer base is the youth, or where
box exercise”; however, in recent years,              the boardroom tends to provide a wider                                                          the board lacks certain skills related to
                                                                                                                                                      digitalisation, innovation, or sustainability.
                                                                                                                                                      Going forward, effective boards will have
                                                                                                                                                      a balance of skills, backgrounds, and
                                                                                              25                                                      expertise.
JSE Top40 Chairs by age group
                                                                                                                                                                                                                             Black
                                                                                                                                                                                                         47.5%                                 52.5%
                                                                                                                                                      “I think there is a skills gap.                                        White
                                                             9                                                                                         On our board, I’m looking for
                                                                                                                                5                      diversity and that’s across
                      1
                                                                                                                                                       gender, skill and colour.”
                 >50 years                             50-60 years                       60-70 years                        70+ years
                                                                                                                                                                                                       Source: Deloitte calculations based
Source: Deloitte calculations based on Who Owns Whom                                                                                                                                                   on Who Owns Whom

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Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                          Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                  Accelerator of change

Open lines of communication                                                                          Responsibility to society
                                                      Prior to the pandemic, many Chairs had                                                       remuneration of executives, not matters           society. Hence, putting the social and
“An ideal position between CEO                        already established open communication         “The social and ethics committee              related to ESG. This seems to contrast with       ethics committee on a more equal
                                                      channels with their executives. However,                                                     shareholder activism in other markets,            footing with other committees will be
 and Chair is a close working                                                                         used to be the runt of the pack
                                                      the pandemic, and the associated business                                                    such as the UK or the United States (US),         important. Looking at the discrepancy in
 relationship where you see                           and supply chain disruptions, remote            and you see that evidenced in                where shareholders scrutinise companies           remuneration across committees, with
 yourselves as partners without                       work, changing government regulations,          the remuneration.”                           for their environmental and social impact.        Audit Committee chairs at some listed
 getting too close to not be able                     and customer implications have increased                                                                                                       companies earning up to three times
                                                      the frequency from monthly or weekly                                                                                                           more than their counterparts on the social
 to challenge or disagree.”                                                                          Many Chairs are aware of the important        “If we as business leaders
                                                      conversations to almost daily calls. Given                                                                                                     and ethics committee, it is questionable
                                                      the frequency of interactions with their       role their companies play in society and       don’t recognise the impact of                    whether the importance of the latter is
                                                      chief executive officers (CEOs), most          are seeking ways to balance financial          climate change and put it on                     fully appreciated.
Black Swan events and other shocks often
                                                      Chairs highlight that building a strong and    sustainability and the profitability of
lead to heightened uncertainty. As much                                                                                                             companies’ agendas, we will
                                                      trust-based relationship with their CEO is a   their businesses with their responsibility
as COVID-19 has forced us to reduce                                                                                                                 not be sustainable. Chairs need                 “ESG has become so fundamental
                                                      crucial role of the Chair.                     towards the communities they operate
in-person interactions, effective, clear,
                                                                                                     in or service. The public is increasingly      to understand these issues in                    and has shifted from companies
and timely communication between the
                                                                                                     looking to the private sector for solutions    order to be able to drive these                  being seen, to wanting to
board and the executive team has played              “During the course of last year,                to major socio-economic issues, including
and continues to play a fundamental role                                                                                                            agendas.”                                        demonstrate what their views
                                                      the frequency of talking to CEOs               inequality and poverty, access to education
in responding to the pandemic and its                                                                                                                                                                and actions are.”
                                                      of the company where I am                      and healthcare, and climate change.
impact on business, the economy and
society. As such, many Chairs confirm that            Chair went to daily calls. It didn’t           Given the high level of inequality in South
                                                                                                                                                   Interestingly, there are divergent views
the frequency of communication between                                                                                                             about ESG, depending on the industry.
                                                      matter who initiated it, and some              Africa, balancing financial, environmental,
                                                                                                                                                                                                     In this context, the Chairs of the Future
them, their boards and their executive                                                                                                             In the extractive industries, for example,        will be critical in empowering the social
                                                      days it would be a WhatsApp                    social and governance (ESG) objectives
                                                                                                                                                   the social and environmental impact of
teams has increased substantially,                                                                                                                                                                   and ethics committee to become the
                                                      voice message, but there were                  is a pressing issue. Finding this balance
especially at the onset of the pandemic                                                                                                            resource companies has been under the             company’s social and ethical conscience
                                                                                                     has become even more relevant during
when new information became available                 daily interactions because it was              the pandemic. While the impact of
                                                                                                                                                   spotlight for some time now.                      and to steer companies towards a more
almost daily.                                         necessary.”                                                                                                                                    just and equitable future. Part of this
                                                                                                     lockdown and the subsequent decline           One of the reasons why companies                  empowerment process will be ensuring
                                                                                                     in economic activity has been severe,         struggle with finding the balance between         that the board contains the right mix of
                                                                                                     low-income earners have been hit the          financial objectives and ESG objectives is        skills and experience and that ESG matters
                                                                                                     hardest. According to the BankservAfrica      the difficulty in measuring the latter. While     are firmly on the board’s agenda. Elevating
                                                                                                     Take-home Pay Index (BTPI) published in       measuring the financial performance               the importance of these matters will
                                                                                                     November 2020,2 income earners taking         of a company follows well-established             embed ESG into the organisation’s strategy
                                                                                                     home less than R30 000 per month were         processes, the measurement of social and          and shared purpose and will support the
                                                                                                     the hardest hit by the economic slowdown      environmental impact seems to be more             emerging trend towards more holistic
                                                                                                     during the pandemic.                          complex.                                          reporting that focuses beyond financials.
                                                                                                     In recent years, there has been a rise in     In the past, social and ethics committees
                                                                                                     shareholder activism in South Africa, which   focused on compliance with B-BEE
                                                                                                     is set to increase the focus on matters       requirements. This is changing. Going
                                                                                                     related to sustainability, environmental      forward, social and ethics committees
                                                                                                     and social matters further. However, some     will play a critical role in bringing ESG
                                                                                                     Chairs question the “maturity” of these       matters to the top of the agenda and, in
                                                                                                     activists and point out that at Annual        this context, the committee can serve
                                                                                                     General Meetings (AGMs), the key focus        as a catalyst driving the organisation’s
                                                                                                     is mostly on financial performance or         social and environmental impact on
10                                                                                                                                                                                                                                                   11
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                             Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                     Accelerator of change

                                                                                                     Technical skills are not good
Moving wellbeing into the spotlight                                                                  enough anymore
                                                      Since the onset of the pandemic, the                                                            Chairs of the Future will require a blend of
“Prior to the pandemic, you took                      focus on staff wellbeing has increased         “Wisdom is an everlasting issue. It              skills, combining strong technical expertise
                                                      substantially, being discussed more                                                             with exceptional interpersonal and
 wellness of your people for                                                                          doesn’t change with technology…
                                                      regularly and deliberately in board                                                             leadership skills. Empathy and emotional
 granted. But with the pandemic                       meetings. An important lesson learned           Human relationships don’t                       intelligence are already important skills for
 it came to the boardroom.”                           from the current pandemic is that staff         change. Maturity, resilience,                   Chairs but are set to become even more
                                                      wellbeing in all its facets should form an      ethics, and wisdom are really                   important as complexity and uncertainty
                                                      integral part of a healthy work culture.                                                        within organisations and the operating
Most Chairs agree that the pandemic has                                                               important.”
                                                      Creating a healthy work culture, that                                                           environment increase.
reinforced the focus on people-related                places people at its core will continue to
matters. While staff wellbeing and                    play an important role in building resilient                                                    Given the need to respond to an ever-
                                                                                                     There is no doubt that the job of Chair is a
mental health have always been items                  organisations that can navigate uncertainty                                                     changing business environment and often
                                                                                                     demanding one that requires a high level
on corporate agendas, the pandemic                    and thrive post the pandemic. To this end,                                                      unpredictable external factors, Chairs
                                                                                                     of experience and strong technical skills.
has served as an eye-opener for many                  new skills will be required on boards, while                                                    of the Future will need adopt a lifelong
                                                                                                     However, as the role of the Chair evolves,
and brought the mental and physical                   existing skills related to human capital                                                        learning approach that is underpinned
                                                                                                     so will the skills required to be an effective
wellbeing of staff, executive teams, and              must be embraced and leveraged more                                                             by curiosity. Furthermore, Chairs need to
                                                                                                     Chair. This does not necessarily mean that
the board into the spotlight. As much as              effectively.                                                                                    continuously assess and sharpen their
                                                                                                     a Chair or board requires completely new
boards and executive teams have focussed                                                                                                              leadership skills to effectively fulfil their
                                                                                                     skills but need to prioritise and use certain
on the financial sustainability of their                                                                                                              increasingly complex role and lead their
                                                     “People became a focal point...                 skills differently.
organisations during the pandemic, there                                                                                                              organisations into the future.
is an increasing realisation that matters             Essential services, frontline staff            For example, a chartered accountant
related to mental and physical wellbeing              protection and issues related                  (CA) qualification and audit or accounting       “You are looking for a person who
cannot be taken for granted and need to
                                                      to mental health were all new                  experience used to be one of the key
                                                                                                                                                       has the knowledge, experience
be taken a lot more seriously.
                                                      agenda items.”                                 pathways to becoming a Chair. At present,
                                                                                                     about one-quarter of Chairs of JSE Top40          and skills that are a given, but
“The pandemic has taught us                                                                          companies have a CA or audit background.          you also need someone with
                                                                                                     However, several Chairs expect that the           sound values and principles who
 that our job is about two things:
                                                                                                     past dominance of CAs will fall and a pool
 saving lives and preserving                                                                                                                           must conduct business in an
                                                                                                     of Chairs with a more diverse background
 lives. What is the duty of the                                                                      will emerge.                                      ethical matter.”
 business for tomorrow? It’s not
 shareholder value maximisation                                                                      “If you become CEO of blue-chip                  A Chair of the Future’s skillset needs
 – it is to simply survive.”                                                                          company, you should have all                    to be supplemented by sound values
                                                                                                                                                      and principles. Considering heightened
                                                                                                      the technical skills, but you
                                                                                                                                                      uncertainty and recent corporate
                                                                                                      need a 21st Century EQ… the                     governance failures, being guided by a
                                                                                                      Chair of Future will be a more                  steadfast moral compass will be crucial.
                                                                                                      approachable person with more
                                                                                                      social skills.”

12                                                                                                                                                                                                                                                      13
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                                      Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                              Accelerator of change

The five dimensions of
the Chair of the Future                                                                                                                                       Company ambassador
As identified in the UK Chair of the Future report,3 there are five dimensions of the                                                              The overwhelming feedback from Chairs         One Chair highlighted that because of the       One of the Chairs recalled how he and the
                                                                                                                                                   was that the CEO should continue to be        pandemic, CEOs themselves have been             CEO mapped out the firm’s stakeholders
Chair of the Future. While research reveals that these dimensions are also largely                                                                 the face of the company. But there was        forced to navigate increased complexity         and decided who should be the face of the
applicable to the South African context, there are distinct local nuances to them.                                                                 also recognition that the stakeholder         within the stakeholder landscape. This has      business and which issues or messages
                                                                                                                                                   landscape for Chairs is widening, far         led the Chair to be more supportive and         needed to be discussed with each of
These dimensions cannot be viewed in isolation from each other, as they are                                                                        beyond the shareholder register. This         to offer to be the voice of the business        these stakeholders. Such a thorough
interlinked and interdependent. Given this interconnectedness of the five dimensions                                                               includes government, regulators, trade        in some stakeholder conversations,              “divide-and-conquer” approach is a trend
                                                                                                                                                   unions, employees, customers, and             particularly where the Chair could leverage     that Deloitte sees globally. Chairs in the
and the common touchpoints between them, Chairs of the Future will increasingly                                                                    the broader communities in which the          an existing relationship.                       UK have highlighted the need for Chairs to
become accelerators of change that embrace diversity.                                                                                              business operates.                                                                            “listen hard” and to convey the business’s
                                                                                                                                                                                                 Some offered an even bolder opinion that        narrative on behalf of the organisation.
                                                                                                                                                   It was a consistent view that Chairs should   Chairs should play an increasingly more         Furthermore, in the light of recent
                                                                                                                                                   continue to make themselves available         ambassadorial role, being an active voice       governance failures, engagement with key
                                                                                                                                                   to shareholders. However, in comparison       on the issues which matter the most to the      investors will continue to be important for
                                                                                                                                                   to the US, UK and European markets,           business, themselves and society, including     Chairs, given that the board is ultimately
                                                                                                                                                   it sems that relationships between the        socio-economic and environmental issues.        accountable to these investors.
                                                                                                                                                   Chair and investors is immature in South      Chairs are in the privileged position of
                                                                                                                                                   Africa. In fact, even in moments of crisis,   becoming accelerators of change.                This approach requires deliberate planning
                                                   Company ambassador
                                                                                                                                                   the invitation to investors to engage                                                         and close alignment between the CEO and
                                                   Represents the company in society and engages with shareholders and stakeholders,
                                                                                                                                                   with the Chair has been disappointingly                                                       Chair to ensure a consistent narrative is
                                                   including political and regulatory. Key messages include the need to adopt a narrative of
                                                                                                                                                   undersubscribed in South Africa.
                                                                                                                                                                                                 “When it comes to shareholders,                 provided to all stakeholders. This level of
                                                   responsible value creation for multiple stakeholders.                                                                                          the Chair has to play a much                   coordination typically stretches beyond
                                                                                                                                                                                                  more active role. We have large                the role of the investor relations manager,
                                                                                                                                                   “Our CEO is very good being                                                                   and often requires the support of a strong
                                                   Strategy provocateur                                                                                                                           shareholders, and some are
                                                                                                                                                    the face of the firm, but if a                                                               communications director.
                                                   Provoke and challenge the CEO and executive team to develop a longer term strategy with                                                        not easy. Our job is to protect
                                                   appropriate horizon scanning to ensure longevity of the company. Apply periodic reviews of
                                                                                                                                                    minister, for example, wants the
                                                                                                                                                                                                  the CEO. You need to pick your                 Given the importance of effective
                                                   both strategic and tactical plans to respond to pace of change and new disrupters. Ensure        Chair, the CEO knows that he
                                                                                                                                                                                                  battles. You need to know what                 shareholder engagement, aspiring Chairs,
                                                   alignment between the board and executive.                                                       can call on me and I make myself                                                             especially those without prior experience
                                                                                                                                                                                                  each person is good at.”
                                                                                                                                                    available. If he wants me in a key                                                           as executive directors, need to explore and
                                                                                                                                                    meeting, I am happy to do it. It’s                                                           identify opportunities to build the required
                                                   Culture and talent cultivator                                                                                                                                                                 skills for such important engagements.
                                                   Ensures the company is led by a strong CEO and executive team by providing support and           not competition between the                  Irrespective of their views on who should
                                                                                                                                                                                                 take up the ambassadorial role, most
                                                   challenge. Keeps a pulse on company culture across the workforce while providing deliberate      two of us.”
                                                                                                                                                                                                 Chairs agree that there needs to be a clear
                                                   support to leadership development and succession planning, beyond simply the CEO.                                                                                                            “When we look at issues like
                                                                                                                                                                                                 understanding by the Chair and the CEO,
                                                                                                                                                                                                 who, under which circumstances and on
                                                                                                                                                                                                                                                 sustainability and governance,
                                                                                                                                                   Several Chairs indicate that AGMs are still
                                                                                                                                                   treated as “tick box exercises “by some       which occasions, plays this ambassadorial       those are the issues where I,
                                                   Guardian
                                                   Guard stakeholder interests by protecting the company’s reputation, performance and             of their peers. In the future, Chairs need    role.                                           as the Chair, want to be the
                                                   shareholder value. Ensure a leadership culture that upholds a high standard of ethics and       to be much better prepared to answer                                                          ambassador.”
                                                                                                                                                   questions, debate with, and accept            The extent to which a Chair takes on
                                                   complies with good governance practices.
                                                                                                                                                   challenges from stakeholders.                 an ambassadorial role is influenced by
                                                                                                                                                                                                 many aspects, including the company’s
                                                   Board conductor                                                                                                                               circumstances, the preferences and
                                                   Establishes the board composition with the right skills and experiences which are fit for the                                                 personality of the Chair and CEO, as well
                                                   future. Sets the board agenda and facilitates effective board conversations by harnessing the                                                 as external factors, such as the countries
                                                   talents and energy contributed by each of the individual directors.                                                                           and sector in which the business operates.
                                                                                                                                                                                                 In heavily regulated sectors, Chairs often
                                                                                                                                                                                                 play an important ambassadorial role
                                                                                                                                                                                                 in engagements with the regulator and
                                                                                                                                                                                                 government departments.
14                                                                                                                                                                                                                                                                                               15
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                         Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                 Accelerator of change

            Strategy provocateur                                                                               Culture and talent cultivator
                                                      It is important that the Chair balances the                                                   Concerns related to the organisation’s          One approach to external appointments
“Functions don’t make companies                       short-term objectives of the organisation     “A lot of what I read a decade ago              culture were raised by most Chairs when         is the early identification of outside
                                                      with a long-term strategy that will ensure                                                    reflecting on succession planning. To           candidates who are then brought into the
 - ideas make companies. How                                                                         was focused on the agenda, and
                                                      the long-term sustainability and resilience                                                   preserve the culture of the organisation,       organisation and placed into senior roles a
 do you challenge ideas while                         of the organisation. This balancing act        how to run the annual strategy                 most Chairs prefer succession of                few years prior to the planned departure
 working from home? How do                            can be difficult, given declining CEO          sessions and didn’t give me the                senior leadership roles from within the         of the CEO or Chair. This approach allows
 boards challenge ideas of c-suite                    tenures. Instead, CEO tenure and strategy      sense it was overwhelmingly                    organisation. In contrast to an external        candidates to be tested and provides them
                                                      consistency need to be seen as a journey                                                      appointment, an internal candidate knows        with the opportunity to learn about the
 executives? You become too                                                                          about people.”
                                                      where the organisation has an overview of                                                     the organisation’s culture, its people, how     business and culture.
 transactional when working from                      a strategy, infused with the experience of                                                    the organisation works, and hence poses
 home.”                                               the board.                                    The 2021 Deloitte Global Resilience Report4     less risk to the culture.                       Many Chairs suggest that, going forward,
                                                                                                    identified five key traits of resilience                                                        succession planning should not stop at the
                                                      To be an effective strategy provocateur,      that help organisations to thrive under                                                         top-tier leadership level, but needs to go
Most Chairs agree that strategy                       the Chair of the Future needs to have solid
                                                                                                                                                    “The fishing pond for Chairs is                 at least a level down. Given the consensus
                                                                                                    extreme conditions. Resilient companies
development is the responsibility of the              technical skills and interpersonal skills,                                                     very small – and we need to                    that leadership succession planning should
                                                                                                    are prepared, adaptable, collaborative,
CEO and the executive team. However,                  combined with maturity and experience                                                          inspire young people to better                 also start much earlier in, for instance,
                                                                                                    trustworthy, and responsible. In this
Chairs play a crucial role in strategy                that allow him or her to challenge the CEO.                                                                                                   the CEO’s tenure, it is very important that
                                                                                                    context, the culture of an organisation          understand how the board
development as they are the key sounding              Having the backing and the support of                                                                                                         the executive team and the NEDs start
                                                                                                    plays an increasingly important role in          works so they can become good
board for CEOs and leaders of the board               a diverse board will increase the Chair’s                                                                                                     identifying suitable talent at an early stage
                                                                                                    improving an organisation’s resilience
that approves the strategy. In addition, the          effectiveness in this regard.                                                                  Chairs of the Future. We need                  and growing these potential future leaders
                                                                                                    during difficult times.
Chair plays an important role in “selling the                                                                                                        to start growing our own timber                by exposing them to various parts of the
strategy” to shareholders.                                                                                                                                                                          business.
                                                     “When you do board assessments                 The importance of organisational                 within the organisation.”
                                                                                                    culture was shared by many Chairs we
As important as the development of a                  and skills assessments, you want                                                                                                              Deliberate succession planning will
                                                                                                    interviewed. One Chair highlighted that
sound strategy is, it is equally important            to ensure a balanced board. This                                                              Internal succession planning requires a         continue to be an important task for
                                                                                                    during the pandemic, the board specifically
that the strategy is implemented properly.                                                                                                                                                          Chairs going forward. Chairs need to have
                                                      includes financial and technology             focussed on proper communication with           deliberate effort to identify and grow the
Many Chairs argue that the monitoring                                                                                                               next generation of leaders. It requires         conversations with their CEOs at an early
                                                      skills so that when the strategy              employees and keeping the culture intact
of the strategy and the assessment of                                                                                                               close coordination between the Human            stage about this. However, they need to be
                                                                                                    as key measures to steer the organisation
how the business is doing vis-à-vis the               is produced you can interrogate,                                                              Resources team and the senior leadership        careful not to create the impression that
                                                                                                    through the crisis and to prevent panic
strategy are key items on their board’s               debate and argue with it.”                                                                    of the organisation.                            this conversation is about an immediate
                                                                                                    among employees. By setting the tone
agenda which therefore needs to be                                                                                                                                                                  replacement of the CEO, but rather part of
                                                                                                    within the organisation, the executive
well-structured and focused on relevant                                                                                                             While most Chairs say that the internal         the long-term planning to ensure stability
                                                                                                    team and NEDs strongly influence the
strategic questions.                                                                                                                                appointment of a CEO is the preferred           of the organisation. These conversations
                                                                                                    organisation’s culture.
                                                                                                                                                    option, many agree that, under certain          require maturity and trust from both the
Given the complexity of businesses and                                                                                                              circumstances, an external appointment          CEO and Chair.
                                                                                                    Many Chairs highlighted that the current
the ongoing changes in the operating                                                                                                                is appropriate, for example, when
                                                                                                    pandemic has revealed how fragile life
environment, it is important that the                                                                                                               there is a need to refresh or change
                                                                                                    can be. Therefore, succession planning                                                         “A general practice I have followed
board has a diverse and balanced set of                                                                                                             the organisation’s culture, to inject
                                                                                                    should never be taken lightly and should
skills. Diversity and balance allow board                                                                                                           new thinking and ideas, or when the             over the years is: when I want
                                                                                                    never start only a few months prior to the
members to better interrogate and                                                                                                                   business’s strategy needs to be revamped        to change the culture of the
                                                                                                    departure of Chair or CEO. Without timely
question the strategy. Chairs and NEDs
                                                                                                    and appropriate succession planning a           or recalibrated. The internal candidate         organisation, then bring in
should be able to ask pointed questions                                                                                                             pool might be inadequate, particularly
                                                                                                    lot of organisations can be thrown into                                                         someone in from outside. But if
about the strategy. Unfortunately, working                                                                                                          when technological or ESG skills are
                                                                                                    crisis at the sudden departure or loss
remotely and conducting meetings virtually                                                                                                          required. One Chair suggests that external      you want to keep the culture, we
                                                                                                    of leadership. Being unprepared for
may reduce the ability of the board to                                                                                                              appointments may also increase in the           pick from inside.”
                                                                                                    succession is a real risk in South Africa, as
challenge the ideas of executives as the                                                                                                            future, with the observation that the
                                                                                                    there has been a steady decline in CEO
relationship may become too transactional.                                                                                                          younger generation seems less likely to
                                                                                                    tenure and unexpected resignations of
                                                                                                    executives in recent years.                     stay with one firm for their entire career.

16                                                                                                                                                                                                                                                  17
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                              Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                      Accelerator of change

            Guardian                                                                                              Board conductor
Many Chairs experience a sense of                     To fulfil their oversight function effectively,   To have a well-functioning and effective       An effective way to ensure the harmonious
heightened responsibility when they move              the board needs to engage with the CEO            board, Chairs need to focus on the board       functioning of the board is to establish         “The board agenda starts with
from being an NED to being a Chair. While             and executive team to understand the              composition of the board, the setting of       well-functioning committees with strong
                                                                                                                                                                                                         strategic initiatives. We need
the success or failure of an organisation             risks the organisation faces. While it is         the agenda, and board decorum.                 Chairs. The committees need to have
does not directly depend on Chairs, they              important for Chairs to have a trust-based                                                       detailed discussions about their focus            to be clear what the outcome
do play a crucial role in the firm’s success          relationship with the CEO, they need to be        In this context, a Chair often plays the       areas and report back to the board, the           is of every board meeting, we
by being the guardian and the head of the             careful not to be too close to the CEO and        role of a conductor. Like the conductor        most relevant aspects of their discussions.       don’t want to go down rabbit
oversight body of the organisation, holding           to maintain their independence.                   of an orchestra who ensures that strings,      This helps to reduce the risk of getting lost
                                                                                                        woodwinds, brass and percussion play
                                                                                                                                                                                                         holes. Rabbit holes are done in
CEOs accountable for their performance.                                                                                                                in unnecessary detail and allows the board
                                                      Chairs of the Future must put the interests       in harmony, a Chair needs to ensure that       to focus the agenda on key strategic and          committees.”
                                                      of the organisation ahead of personal             the board is well balanced in terms of         operational matters. In this context, the
“While failure and success do not                     interests. They need to be prepared to take       experience and skills and that he or she       company secretary plays a very important
 depend on the chair directly,                                                                                                                                                                           Chairs should not discount the value
                                                      tough and, at times, unpopular decisions in       brings out the best in each board member       role in streamlining the agenda and being
                                                                                                                                                                                                         of board evaluations. Some Chairs and
 he/she can play a big role in the                    the interest of their organisations, even if      and sub-committee. The Chair creates           an effective sounding board to the Chair.
                                                                                                                                                                                                         NEDs might regard board evaluations
                                                      this means that they will not be re-elected       an enabling environment that allows the
 organisation’s success.”                                                                                                                                                                                as a cumbersome exercise; however,
                                                      or will be voted out of their positions.          executive team to succeed.
                                                      Above all, the Chair of the Future needs to
                                                                                                                                                       “The Chair of the Future won’t                    it can assist Chairs with identifying
                                                                                                                                                        be an older wise person, but                     the best board talent and weed out
In recent years, South Africa and many                be guided by a steadfast moral compass.
                                                                                                        “This ‘me, myself and I’ mentality                                                               underperforming NEDs. Several Chairs feel
other markets have witnessed several                                                                                                                    a person with experience,
                                                                                                         as a Chair has ended. So, it is                                                                 that if underperforming board members
high-profile corporate failures both in the
                                                     “Too often, you have examples of                                                                   business acumen and mediation                    are not weeded out aggressively, Chairs
public and private sectors. Several Chairs                                                               the move from self to about the
                                                      over-charismatic CEOs pushing                                                                     skills. Younger, mediator, not just              miss the opportunity for meaningful
point out that some of these corporate                                                                   board and getting the ultimate                                                                  change on their boards.
failures are often the result of governance           companies in wrong directions                                                                     a successful businessman. He or
                                                                                                         output from the board.”
failures, where dominant, over-charismatic            because boards are not strong                                                                     she has to be sympathetic and                    Chairs of the Future will increasingly take
or rogue CEOs have pushed companies in
                                                      enough – and don’t say “no” or                                                                    empathetic to various things…to                  on the roles of moderator and facilitator,
the wrong direction and taken advantage                                                                 For it to be successful, a board needs to
                                                      stand up to the charismatic CEO.”                                                                 have emotional intelligence.”                    ensuring that the various views of the
of weak boards. In most cases, the boards                                                               be harmonious. However, a harmonious                                                             board are considered. This also requires
failed to discharge their oversight mandate                                                             board does not mean that NEDs need to                                                            the Chair to step into the background and
appropriately. To avoid future failures,                                                                be yes-men; instead, each board member         While mandating and empowering                    provide others with space to contribute.
boards need to ask the right questions                                                                  must feel comfortable contributing. It is      committees to zoom in on their key focus
and focus on holding the executive team                                                                 the Chair’s responsibility to ensure a board   areas is beneficial and contributes to
accountable.                                                                                            environment in which everyone feels their      the success of the board, it poses the
                                                                                                        voices are heard and considered. In this       risk that information or knowledge is not
                                                                                                        context, some Chairs see the move to           shared effectively. Similarly, information
“Entering the field to be a
                                                                                                        virtual meetings as a big advantage, as it     flow is impacted by the different levels of
 defender or midfielder is                                                                              forces Chairs to get everyone’s inputs.        exposure to various stakeholders. This
 completing different to being                                                                                                                         risk of discontinuity of knowledge is a key
 the goalkeeper. You realise as                                                                         “I view it as a partnership of
                                                                                                                                                       issue that Chairs need to be aware of and
 the goalkeeper that a mistake                                                                                                                         address. As the conductor of the board,
                                                                                                         equals, and I am the conductor                the Chair needs to enable the appropriate
 becomes a goal. As chair, you                                                                           and orchestrator for a period of              flow of information between stakeholders
 are the goalkeeper. You’re a first                                                                      time.”                                        to ensure that all NEDs have access to
 amongst equals.”                                                                                                                                      all relevant information when making
                                                                                                                                                       decisions. This is of particular importance
                                                                                                                                                       for newly appointed NEDs.

18                                                                                                                                                                                                                                                       19
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                               Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                       Accelerator of change

Ten pieces of advice to the
Chairs of the Future
     1    Invest the time in really                                      3     Seek feedback regularly (even as an                          5     Create managed trust with the CEO                                7     Embrace diversity
          understanding the business                                           experienced Chair)
                                                                                                                                          Building the relationship with the CEO is one of the most              South Africa is rich in diversity and there is richness in diversity.
It is crucial for a Chair to really understand the business beyond     Feedback is crucial for you to identify areas for improvement
                                                                                                                                          important aspects of your role as a Chair. The roles of the CEO        To build a sustainable and resilient business, embrace diversity.
a “superficial level”. Without in-depth knowledge of and insights      and avoid repeating mistakes. Seeking feedback might be seen
                                                                                                                                          and the Chair can be lonely roles. As a Chair, your role is to make    Your organisation, across all levels, should reflect all sectors
into the organisation, its operations, people, and customers,          as challenging because you make yourself vulnerable, but it is
                                                                                                                                          the CEO shine, not be an object of blame. Focus on creating a          of your customer base. Avoid adopting a narrow definition
a Chair will struggle to provide meaningful oversight and              important for taking the organisation forward.
                                                                                                                                          managed trust relationship with the CEO through ongoing and            of diversity or seeing it as a compliance issue: diversity
guidance. When accepting a Chair role, be open to learning
                                                                                                                                          deep conversations. As a Chair, you need to dedicate a lot of          is a business imperative which will create value and new
everything you can about the business.                                 Practical tips:
                                                                                                                                          time to make sure that you get into the zone of managed trust          perspectives. It might be more comfortable for you to have
                                                                       • Find out from your board members what works and does not
                                                                                                                                          relationship with your CEO. Once you establish trust and mutual        people around the table that look and talk like you, but the role
Practical tips:                                                          work in board meetings.
                                                                                                                                          respect, you can work effectively together and reduce the risk of      of the Chair is not meant to be comfortable.
• Talk to your predecessor.                                            • Conduct proper “post-mortems” to find out where you have         corporate scandals.
• Walk the shopfloors, visit various offices of the organisation,        made mistakes and how you can avoid making them again.                                                                                  Practical tips:
  and speak to as many stakeholders as possible. Don’t just talk       • Leverage board assessments to get in-depth feedback and, if      Practical tips:                                                        • Perform a gap analysis on skills.
  to fellow NEDs or the executive team, but also talk to staff so        necessary, don’t be afraid to remove non-performing board        • Have open and honest conversations with the CEO.                     • Create a culture of inclusivity.
  that you get a sense of what working for the organisation is           members.                                                         • Seek to understand and learn about the CEO’s personality.            • Encourage and listen to dissenting voices.
  really like.
                                                                       • Understand that the company secretary is a key ally in the       • Don’t let executives run away with their decisions without
• Nothing stops you from asking for advice from the tea lady,                                                                                                                                                    • Consider creating platforms, such as a Millennial Board, to
                                                                         feedback process and, in fact, in the life of the Chair.           NEDs knowing about it.
  the receptionist, or your driver. Get out of your boardroom                                                                                                                                                      engage and leverage your diverse workforce.
                                                                       • It is important to reflect on and try to implement feedback.     • Remember, it’s not a competition between the CEO and the
  chair and sit at the reception area or lobby of your company
  and observe staff and clients.                                                                                                            Chair: you play for the same team.
                                                                                                                                                                                                                   8     It’s not about you
• Talk to your customers and investors, as they will appreciate          4     Empower your committees
  you taking the time to talk to them and, in return, you will learn                                                                        6     Keep the ‘non’ in non-executive
                                                                                                                                                                                                                 The Chair plays a vital role in the organisation, but is not the
  a lot about your organisation.
                                                                       A board is only as effective as its committees. By empowering              director                                                       organisation, nor its purpose. Being a Chair requires enough
                                                                       your committees and their Chairs, you will be able to declutter                                                                           maturity to step back and let others run the organisation. A
                                                                                                                                          You are not the CEO. This may be a simple and obvious
     2    Don’t take the job for the money                             the agenda and focus on the most relevant issues during the
                                                                                                                                          statement, but it is profound. Recognising the importance of
                                                                                                                                                                                                                 Chair needs to have a deep passion for the business and the
                                                                       board meeting.                                                                                                                            desire to make the CEO and executive team succeed. You are
                                                                                                                                          separating these roles can be challenging for some first-time
                                                                                                                                                                                                                 first amongst equals and should not assume you have all the
The job of Chair often comes with status and great financial           Practical tips:                                                    Chairs. Be respectful of the boundary between CEO and Chair
                                                                                                                                                                                                                 answers. It is not the Chair’s job to make all the decisions,
reward. However, this is not a good enough reason to accept                                                                               and don’t overreach it. Be mindful when to act and when not to
                                                                       • Be very careful and deliberate in picking the right Chairs for                                                                          instead to give the board the opportunity to give their inputs.
the role. If you do, there is the risk that you take the wrong                                                                            act. Sometimes a CEO wants to have a detailed and operational
                                                                         your committees.
decisions. To be truly independent and put the wellbeing                                                                                  engagement with the Chair, but not always.
                                                                       • Make sure that you have the right skills on the committees.                                                                             Practical tips:
of your organisation before your own interests requires an
understanding of your purpose as the Chair.                              Your committees are the part of the board where the              Realise that you are the link between the board and the                • Be humble and accept that you are going to make mistakes.
                                                                         “heavy-lifting” is happening.                                    executive team, provide guidance and be a sounding board, but          • Accept that you will have difficult board members.
Practical tips:                                                        • Recognise and leverage the depth of experience on your           do not interfere with executive functions. Your job is not to run      • Accept that you don’t know everything. But remember that you
• Don’t be afraid to take the right, but unpopular decisions, even       board. Empower and encourage your NEDs to provide support        the business, but to get the best out of your executive team and         are capable of leading the board.
  if they cost you your job as Chair.                                    and guidance to the executive team and the rest of the           to hold them accountable.
                                                                                                                                                                                                                 • Create an enabling environment that allows the executive
                                                                         business.
• Be wary of NEDs that are dependent on their board fees, as                                                                                                                                                       team to thrive, by giving them space, providing support, and
                                                                                                                                          Practical tips:
  they might not speak their mind and only try to please you or                                                                                                                                                    sharing your experience.
  management rather than challenge the organisation.                                                                                      • Ensure that the boundaries between executives and
                                                                                                                                            non-executives are clear and well communicated.
                                                                                                                                          • As Chair, make yourself available to all stakeholders (e.g. staff,
                                                                                                                                            customers, unions, and communities) as you are seen as an
                                                                                                                                            independent person not siding with the executive.
                                                                                                                                          • Encourage NEDs to become avenues to which stakeholders
                                                                                                                                            can share their perspective.

20                                                                                                                                                                                                                                                                                        21
Chair of the Future – South Africa 2021 |
                                         Accelerator of change                                                                                                                                                            Chair of the Future – South Africa 2021 |
                                                                                                                                                                                                                                                                    Accelerator of change

                                                                    Looking ahead                                                  About this research
                                                                                                                                   List of Chairs/NEDs interviewed                  • Harish Mehta
     9    Do good                                                   While there is some light at the end of the COVID-19
                                                                    tunnel thanks to the rollout of vaccines, the next shock,      • Santie Botha                                   • Bonang Mohale
                                                                    be it another pandemic, a financial crisis or a natural        • Thevendrie Brewer                              • Khotso Mokhele
South Africa faces many socio-economic challenges. Society          disaster, is imminent and uncertainty is expected to
is increasingly looking to the private sector to help solve these                                                                  • Graham Dempster                                • Kgomotso Moroka
                                                                    remain heightened going forward. Given the prospect of
challenges. Understand that investors, small or large, bought       future shocks, it is important that organisations reflect      • Kunseni Dlamini                                • Sipho Nkosi
your organisation’s shares not just for financial, but also for     on the lessons learned during the pandemic and use             • Jannie Durand                                  • Imtiaz Patel
social returns. As the Chair, you are in a privileged position to   them to build more resilient and agile organisations for       • Geraldine Fraser-Moleketi                      • Nigel Payne
make a meaningful impact on your company’s staff, suppliers,        the future.
                                                                                                                                   • Mike Hankinson                                 • Marilyn Ramplin
and customers.
                                                                    Given the rapid and continuous change in the operating         • Roger Jardine                                  • Malcolm Rutherford
Practical tips:                                                     environment and ongoing disruption from exponential            • Suresh Kana                                    • Khumo Shuenyane
• Be aware of the role you and the company play in society.         technologies, it remains critical for organisations to have    • Alistair Knock                                 • Desmond Smith
• As the Chair, you can shape the conscience of your company.       the right skills in their leadership teams. However, with
                                                                                                                                   • Phumzile Langeni                               • Peter Surgey
                                                                    increased complexity and rising demands on Chairs
• Make sure that you hire the right skills and that you empower                                                                    • Mike Leeming                                   • Phillip Vallet
                                                                    and NEDs, there is a threat that these roles become less
  your social and ethics committee, to drive change in your
                                                                    attractive in the future. To mitigate this threat, companies   • Sindi Mabaso-Koyana                            • Jeffrey van Rooyen
  organisation and in society.
                                                                    need to look at innovative ways to attract and retain          • Jacko Maree                                    • Louis van Zeuner
                                                                    board talent. In this context, deliberate and effective
                                                                                                                                   • Norman Mbazima                                 • Gcina Zondi
 10 Be yourself                                                     succession planning that embraces diversity will play a
                                                                    central role in ensuring an adequate talent pipeline for
                                                                    future boards.
If you sat on the board before becoming the Chair, don’t try and
emulate the previous Chair. Be your own person. It’s important      Forward-looking organisations understand that as
to remember that all boards are different. You will have to deal    much as new skills are required to respond to the
with different personalities, some of which will be aggressive      changing business and technology landscape, emotional
and dominant.                                                       intelligence and human relationships are of paramount
                                                                    importance to building successful and resilient
Practical tips:                                                     organisation for the future.
                                                                                                                                   Endnotes
• Focus on developing your interpersonal skills and EQ to deal
  with friction.                                                    As organisations evolve and adapt to an ever-changing
                                                                                                                                   1		 Ahir, H, N Bloom, and D Furceri (2018): World Uncertainty Index (January 2021 update),
• Stand up to board members when necessary, but in a                environment, the role of the Chair will continue to evolve,
                                                                                                                                       Stanford mimeo. Retrieved from: https://worlduncertaintyindex.com/data/
  respectful manner, as you set the tone for the decorum of the     too. Chairs will increasingly have to ask themselves:
                                                                                                                                   2		 BankservAfrica (2020): October 2020: A clearer picture of SA’s salaries and employment.
  board.                                                                                                                               Retrieved from: https://www.bankservafrica.com/api/public/
                                                                    • What role will our organisation play in society?
• Don’t be afraid to shake things up, it’s your board after all.                                                                       blogblob/5fc7a1fb12787d0043370d20
                                                                    • What skills will we need to play a meaningful role in
• And lastly, don’t forget to have some fun.                                                                                       3		 Deloitte (2020): Chair of the Future – Supporting the next generation of business leaders.
                                                                      society?
                                                                                                                                       Retrieved from: https://www2.deloitte.com/uk/en/pages/about-deloitte-uk/articles/chair-of-
                                                                    • How will we ensure and maintain the quality of our               the-future.html
                                                                      talent pipeline?
                                                                                                                                   4		 Deloitte (2021): Building the Resilient Organization - 2021 Deloitte Global Resilience
                                                                    • How are we going to measure our impact on society,               Report. Retrieved from: https://www2.deloitte.com/content/dam/insights/articles/
                                                                      environment, planet?                                             US114083_Global-resilience-and-disruption/2021-Resilience-Report.pdf?icid=learn_more_
                                                                    • How will we strengthen our transparency reporting?               content_click

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Contacts
                  Ruwayda Redfearn                                                                        Dr Johan Erasmus
                  Chair of the Deloitte Africa Board                                                      Chief Ethics Officer
                  Deloitte Africa                                                                         Deloitte Africa
                  Email: ruredfearn@deloitte.co.za                                                        Email: jerasmus@deloitte.co.za

                  Nina le Riche                                                                           Mark Victor
                  Partner and Deloitte Africa Board                                                       Partner
                  Member                                                                                  Centre of Corporate Governance
                  Deloitte Africa                                                                         Deloitte Africa
                  Email: nleriche@deloitte.co.za                                                          Email: mvictor@deloitte.co.za

                  Delise van der Byl
                  Head of Clients
                  Deloitte Africa
                  Email: dvanderbyl@deloitte.co.za

Authors
Leisl van Zyl                                                                           Simon Schaefer
Board & Executive Programme Leader                                                      Senior Insights Manager
Deloitte Africa                                                                         Deloitte Africa
Email: leivanzyl@deloitte.co.za                                                         Email: sischaefer@deloitte.co.za

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