7 reasons to invest in board development

1. Keeps board members focused

Investing in board development reminds directors of their role and responsibilities. It can be easy for board members to become muddled in the heat of a debate or caught up in the needs of a specific interest group. Learning and development enables board members to think strategically for the collective good of the organisation.

When board members interact in a less formal training environment, they are encouraged to work as a team. Board development training helps to build stronger, more resilient relationships that can be vital in times of difficulty.

2. Upholds directors’ legal duties

In the Companies Act 2006, directors have a list of legal duties, including using ‘reasonable care, skill and diligence’ to carry out their responsibilities. Development training programmes enable the board to stay informed and incentivised to carry out this duty effectively.

3. Increases safety and compliance

In today’s ever-changing business landscape, the board needs to ensure the organisation is run in a safe and legal manner. Board members need to stay up to date with any changes to legislation, regulation, and any factors that could have an impact on their operations. Board development should involve regular updates on such changes, and how they might affect the organisation and the industry. It should also highlight any actions that need to be taken.

4. Motivates and retains directors

Directors are more likely to value working for an organisation that actively invests in their skills and knowledge. This can result in increased motivation and loyalty, as well as improved learning and growth in their role. Motivated board members are more likely to commit to continuing professional development, as well as staying with the business.

5. Creates trust and connections

Board members who reflect and spend time learning are more likely to communicate better with their fellow members. It’s important that a board is able to speak directly and clearly about any pressing matters that need to be debated and addressed. Learning together helps to forge stronger connections between board members and a level of trust can be developed that enhances the board’s performance.

6. Improves performance and innovation

When organisations invest in learning and development, they are more able to take advantage of new and emerging technologies. Beniot Dostie’s 2014 study on Innovation, Productivity and Training showed that an increase in training leads to an increase in innovation.

Board development programmes can improve directors’ understanding of technological, innovations, enabling commercial opportunities to be spotted. It can also help to improve board members’ performance.

7. Provides a competitive edge

By embracing the connection between learning and development and innovation and performance, organisations can lead with a competitive edge. Technology, systems and processes can be refined and improved. This can lead to the launch of new products or services that better meet customer demands.

Conclusion

By investing in the continual learning and development of board members, your organisation will benefit from having more skilled leaders. A directors’ development plan can help you to future-proof both the board and your business.

The IoD Director Competency Framework defines the knowledge, skills and mindset required for directors as a professional group – regardless of sector, industry, role or location – and explores 16 core competencies under these three dimensions. Utilising this framework, competencies and skills can be mapped and assessed to aid delivery of an organisation’s strategic plan. Any skills gaps can be addressed by training or used to guide the recruitment of new board members.

Board member development shows that your organisation values learning. This encourages employees across the organisation to continuously develop, creating a vibrant learning culture. A high-performing board with skilled workers is the foundation of a successful business.

The IoD delivers a range of board development courses. Our programmes are designed to fit the strategic and cultural needs of an organisation, regardless of size, sector and goal.

For more information, please see the IoD Professional Development page.