Financial Data
Updated 27 Sep 2020

Be a proactive Director, instead of making excuses for poor performance

Times are tough, but that’s when real leaders put their heads together, get to work, and lead. This is no time for excuses. 

Carl Bates, Entrepreneur, 17 August 2017  Share  0 comments  Print

All the answers to your unique business lifestage questions

Consider this

As a board, have you built a business resilient to change or is it a house of cards? Do you accept personal responsibility for not being resilient to market shocks?

We have a well-known saying in Sirdar Group: Insert Excuse! It’s applicable and relevant whenever we hear a director or shareholder-manager say, ‘Yes, but…’ as to why their company is not performing or the well-used ‘but our company is different’.

As a director of a company, be it executive or non-executive, the decisions you make are yours, whether you believe that or not. The Companies Act agrees and requires that directors act in the best interests of the company and with care, skill and diligence.

Our view is that blaming external forces — or as a board even blaming a rogue or incompetent managing director – in no way relieves you of your directors’ duties. 

Related: Just because you attended the board meeting doesn’t mean your job is done

If it happened on your watch

We consider it to be a key requirement that a high-performance director is exceptionally critical of his or her own performance. This is not about back-lashing and guilt for mistakes and errors in judgement. It’s about leaving the ego at the door and embracing continuous improvement.

This requires an attitude of humility backed by confidence and it’s easier said than done. Sometimes it requires acceptance that the game of business is bigger than you or is not suited to your talents.

In privately-held companies and family businesses, the challenge of ego and letting go is often the greatest hurdle for founders, who typically wear all three hats — shareholder, director and manager. They have nurtured the business from birth and made an immense emotional, mental and financial investment.

As the company grows, and needs higher levels of leadership, the cracks begin to show. The excuses and reasons ‘why not’ become a mantra of holding onto the status quo and not letting ‘the baby’ grow up.

The simple truth is that no matter which hat you wear in addition to the director hat, if the problem happened on your watch, you are responsible.

When life hands you lemons

This willingness to take responsibility is most evident during economic and political turmoil. When external forces rattle the cage, they are often used as the reason ‘why we cannot’. Recent events in South Africa are a classic example.

Market and funding uncertainty will impact every company. Yet, as a board, have you built a business resilient to change or is it a house of cards? Do we have an attitude that accepts personal responsibility for not being resilient to market shocks?

In conducting research for my book Traversing the Avalanche, published in 2014, I learnt everything I could about avalanches. We use the avalanche as an analogy for the disasters that strike companies and how a board is fundamental to being able to traverse the avalanche when it strikes. It was interesting to discover that most people who died in avalanches were the trigger for those avalanches.

Related: 10 Lessons from Andrew Brand on shaping organisational success

Applying that metaphor in business, life-threatening or even highly challenging strikes could, in most cases, be averted by a company that approached its growth in the right way. In the ‘Risk Mitigation and Compliance’ dimension of the Sirdar Enterprise Governance Compass, we challenge directors to see risk as opportunity and to unlock value by approaching risk in a proactive way. Risk should be managed, yet high-growth companies know how to turn risk into reward.

So too does this apply in economic uncertainty. Look for the opportunities to stabilise your foundation and leverage up your growth — not despite the challenge but because of it.

Put down the excuses and be exceptionally critical of your own performance. Embrace the opportunity to use the shake-up as a means of creating stable and sustainable growth.

Entrepreneur Mag Logo

Copyright is owned by Entrepreneur Media SA and/or Entrepreneur Media Inc.
All rights reserved. Click here to read our editorial disclaimer.

Rate It12345rating

About the author

Carl Bates, Entrepreneur

Carl Bates is a global entrepreneur, speaker, author, mentor and director. Currently based in South Africa, he is a dynamic entrepreneur from New Zealand who guides small to medium businesses to achieve Extreme Business Success.

Introducing the theft & fidelity protection for your business

Theft and fidelity cover are often confused with each other. Bryan Verpoort discusses the difference between the two and why your business should be putting measures in place for both of these risks.

Login to comment