A new definition of ‘good business leadership’ has been put forward by the Institute of Directors in launching a competency framework for all directors in the wake of the highly controversial collapse of retail group BHS.
Described as a ‘new blueprint for success’, the IoD’s Director Competency Framework places traditional commercial expectations alongside a broader mix of behaviours and skills.
‘Knowledge of finance and business strategy are put on the same level as the ability to encourage diverse views, political astuteness and decision-making in the face of uncertainty,’ said Clive Parrish, chairman of the IoD’s Isle of Man branch.
‘The Competency Framework is understood to be the first of its kind to apply to directors of companies of all sizes and sectors, including listed and unlisted companies and not-for-profit organisations,’ declared Mr Parrish.
‘Following widespread media coverage of the BHS saga, combined with allegations of unacceptable working conditions at SportsDirect, public faith in business to do the right thing has been severely shaken.
‘This makes the Framework’s emphasis on communication and building external relations very timely.’
The Framework provides every member of any board, in any sector or industry, in any country with a clear and comprehensive set of standards to guide their performance and development.
‘It draws together the IoD’s many years of expertise and experience supporting and educating directors,’ said Dr Suzy Walton, an ioD board member and chartered director who helped to craft the new guidelines.
‘This is the first framework of its kind to provide a holistic picture of the knowledge, the skills and the mindset that every director needs to bring to their role to be fully effective,’ she added.
The announcement comes at a time when the IoD is seeing a double digit increase in business leaders investing in their professional development.
It believes that this in part is due to the high profile governance failures, meaning business leaders are increasingly aware of their responsibilities and part down to a recognition that good leadership makes good business sense.
Dr Suzy Walton added: ‘The new Framework provides every member of any board, in any sector or industry or indeed any country, with a clear and comprehensive set of standards to guide their performance and development.’