In this edition:

• Inge Brakman focuses on the role of the system behind conflicts in the boardroom.
• Pamela Boumeester draws attention to strategic items in corporate budgets.
• Edwin Bouwman warns against 'the success'.
• Dries van der Vossen invites you to support culture and innovation with a donation to the Carré Fund.

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1. The request for advice

In which a partner from De Bestuurskamer talks about a specific assignment and the chosen approach.

‍Inge Brakman:
“We were approached by someone from the Executive Board of a large company: come help, our management team is not working optimally, can you coach these members on their mutual cooperation? After a series of individual discussions, it soon became clear that a conflict was playing in the background, which meant that the cooperation had failed.

In addition to discussing the conflict and individual behavior, it is often also important to look at the entire system. Who else is in the photo of the organization? A conflict between two people usually occurs within a context where others also play a role. Moderately or poorly developed governance can also contribute to a conflict situation. For example, someone who is formally responsible for business is evaded or excluded. This creates distrust and a conflict is looming. So it's about not only getting a good picture of the opponents, but also their environment and the habits that shape social interaction.”

“De Bestuurskamer also came into the picture at that time, because unclear decisions had been made. Initially, we discussed the concrete incidents that caused the conflict and then pronounced them among themselves. This also looked at environmental factors, such as the attitude of colleagues and the informal and formal lines within the organization.

Finally, in the completion, we involved the entire team, including the Executive Board, making agreements for the future to prevent misunderstandings and frustrations. In the end, the team was able to get on with it, the air was clear.”

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2. Three relevant questions

In which a partner from De Bestuurskamer answers three questions about current trends in the business labor market.

‍Autumn: the budget season starts again

Pamela Boumeester:
“Sure. After the summer, the preparation of budgets for the coming year will begin. And now I always notice something essential about that. Part of the budget is a “fixed price” but another part, big or small, is in principle intended to “translate the strategy into numbers”. And that part requires more attention than it usually gets, I think.”

Explain
“Look: staff costs, rent, gas, water and light are usually standard elements in a budget. It's not that hard to decide on that. But some of the budget sessions are, as it were, a 'translation' of the administrative strategy into budget items and budgets. And that translation should be the heart of the budget session. The key question: what will our strategy cost us in the coming year?”

“What we often see is that not too much time is spent on that essential question. Then a budget is usually a blueprint — what it was budgeted last year is almost always budgeted again. With a few caveats here and there. It then seems like an exaggeration that strategy and budget don't talk to each other. And once drawn up, the budget quickly disappears behind the horizon.”

How do you solve that?
“That's not that easy. It requires a great deal of concentration by the board on posts that are highly dependent on the chosen strategy. Then it's about posts such as ICT — are we going to focus on AI or, to name an example from the NS, are we going to introduce a type of card whose revenues we can't exactly estimate yet but that we consider essential for the customer of the future?”

“The larger and more complex the company, the more complicated it is, of course, to translate the strategy financially. As a supervisor, you can play a role in this. By knowing exactly what the company's strategy is and then taking a good look at which parts of the budget explicitly concern the strategy. Which posts will bring you closer to your long-term goal? If that is not immediately clear, you should want to ask the directors about it. And ultimately, supervisors are free to reject the budget on this ground too: a great piece of work, but not to protect the strategy.”

“An example. At WPG, where I'm the president's commissioner, we've run better than the forecast over the past year. Good news, of course, but it also raises a consideration: are we going to do even better in the coming year so that we can reward our employees better, or are we also going to partly reserve profits to invest in acquisitions and the acquisition of new titles or new authors — activities that are related to the company's mission? And how much is that development strategy worth to us — literally —? There, it is possible to budget in line with the long-term vision.”

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3. Sources of inspiration

In which a partner of De Bestuurskamer shares sources of knowledge that inspire him or her.

‍Edwin Bouwman:
“I think it's a really inspiring book”From Strength to Strength by former Harvard professor and columnist Arthur Brooks. The book opens with a conversation that Brooks captures on an airplane: he hears a conductor talking about his concern, never being able to reach his old, world-famous level again. He is audibly struggling with that. Brooks was inspired to answer the question of how we can age meaningfully and happily. A question that may be particularly relevant for people who have had great success in their early career years and are starting to struggle with the idea of declining performance.”

“Many of us fall for what Brooks calls 'the success', an addiction to ever greater and new personal successes when our environment is less and less eager for it. For example, some corporate “old boys” — and “old girls” — continue to express their views all too emphatically in the committees where they are gradually sitting primarily in terms of quality. With their 'omniscience', they prevent new generations from having their own voice. We recognize the convulsion of such directors at The Board of Directors, and we honestly put it into words in search of alternative behavior.”

“In doing so, Brooks presents us with a mature form of intelligence that he calls crystallized intelligence: wisdom, experience, and the ability to transfer knowledge. This requires a soft voice, service, spirituality and empathy with new generations. The added value of having an older leader or advisor is no longer being the smartest in the room, but the wisest.”

“At the De Bestuurskamer, we tell clients: although you are unique, your situation is not. We know them, we have experienced them ourselves or seen them pass by. We are now more of a trainer than a player here; that role also suits me personally at this stage of my life. But even as an adult commissioner, you are ideally more questioning than telling. I include Brooks' views in my supervisory boards so that I can ask the right questions as a sparring partner for Supervisory Board and directors.”

“The book is full of lovely aphorisms. Let me mention two:

• “Success doesn't deliver the happiness you think it will.” Flat success, measured in money or status, is an empty vessel if it isn't accompanied by inner meaning.
• “You can't base your life's purpose on something that you will inevitably lose.” In other words: success, youth and status disappear, your meaning needs to be tapped elsewhere. Highly recommended for everyone over forty.”

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4. The world outside

In which a partner from De Bestuurskamer provides some personal suggestions that help make life even more beautiful.

Dries van der Vossen:
“As co-director of the Carré Fund, I was able to see up close how valuable it is to preserve our country's cultural icons. Carré belongs to everyone — on an average evening, the whole of the Netherlands walks around there.”

“The basis of the Carré Fund at the time was the great success of the musical Cats, whose license Carré held for continental Europe. The license proceeds partly flowed into the fund and formed a solid foundation for the activities. In recent years, these funds have been supplemented with contributions from partners, sponsors and friends.”

“The fund has three goals. First: the building is owned by the municipality but the maintenance is for Carré. A 135-year-old building requires considerable expenses in terms of maintenance and renovation — this is financed by the Carré Fund. Think about accessibility, sustainability and issues such as sound, lighting, the stage and the auditorium.

Secondly, programming must also remain appealing, attractive in its breadth. In addition, the fund is a risk partner for Carré's management in setting up and realising new productions.

Thirdly, the fund also develops new talent with grants for cabaret, ballet and music.”

“I can recommend that everyone, especially now that the government is increasingly withdrawing from the cultural sector, to support culture through a contribution to the fund. That is really necessary, for preservation and innovation.”

5. What else comes to the table

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• PODCAST — Listen here to a series of podcasts by De Bestuurskamer about solving major dilemmas in the boardroom.
• BUNDLE — You can here the bundle “Our council is working well” order. In this informative and handy book, John Jaakke highlights the functioning of boards and supervisors in fifteen pointed columns full of practical tips and insights from the practice of supervision.
• BLOGS — In response to the bundle “Our council is working well” John Jaakke has personal conversations with top directors and supervisors about life and work, and especially about the tricky themes in and around the boardroom. here you will find those conversations as blogs.

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