The United Kingdom: Indirect Leadership

Abstract

Chapter 2 reveals that effective chairs of boards of directors in the UK are accomplished professionals with strong views, who lead the board without “taking up much space” and avoid the limelight. They engage directors in a collective effort, creating an environment for effective collaboration and encouraging productive behaviours by providing feedback and opportunities for collective and individual learning and development. They do not give orders or issue directives; instead they steer or nudge followers by setting agendas, framing discussion items, soliciting opinions, and seeking and providing feedback. They delineate their spheres with the CEOs—“I run the board; you run the company”—and strive to strike a fine balance between “equal distancing” and proactivity in relationships with shareholders. During the COVID-19 crisis chairs of British boards demonstrated resilience, commitment and adaptability. They quickly moved their board meetings into an online format, increased the frequency of their interactions and adjusted their agendas. Chairs of UK companies also significantly increased their time commitment and made themselves available round the clock. At the same time, most of them steered their boards away from interfering with the management’s job.