An effective board is a collection of “good leaders.” But how do we measure leadership and how do we create an effective board? Research shows that leaders are measured as “good” when they marshal all their skills, and abilities, and use their influence to affect and be affected by others (Northouse, 2016). Training new or existing individual board members and preparing them to serve others is the heart of producing good leaders. This can be accomplished by utilizing extension resources and participating in leadership development programs.
Leadership is crucial in creating the standard for boards of directors. Agricultural cooperatives (co-ops) boards are no different when it comes to sound governance. Addressing leadership incompetency early, at the same time increasing director capacity, is vital to the co-op’s long-term success. While producers are the backbone of co-op boards, their farming and ranching experience may not prepare them entirely for a role in professional oversight, strategic decision thinking, communication, and representation. In fact, our research revealed that directors struggle with self-awareness and communication, which are essential elements of good leadership, and instead focus greater attention on their fiduciary duties.
In a rapidly changing and uncertain world, cooperative boards of directors face enormous internal and external challenges. Many of these challenges stem from factors not in their control yet consume a great deal of attention. Other challenges more routine, are relegated to management, diluting the board’s influence over new strategy or direction. This may perpetuate the perception that the professional manager is more equipped to oversee leadership issues. The complexity of these challenges requires a higher-level thinking and superior board leadership to mitigate shifts in customer needs, profitability, and future sustainability.
Usually, leadership development training for co-ops, stems from informal, unstructured, and “on-the-job” training. Although experience is a great asset, this learning process lacks the rigor of leadership technique and understanding and should not replace profession governance principles. The truth is new and continual leadership training is an essential activity in building effective boards and successful businesses. The responsibility of the governing board of directors is to lead strategically and intentionally to ensure sound governance prevails. The goal of the co-op should be to thrive, not simply survive.
Therefore, it is incumbent that co-ops should evaluate director performance and provide training opportunities for improvement. More importantly, a comprehensive and multidimensional approach to teaching effective leadership will not only grow better leaders but will lay the groundwork for a culture of continual learning.
Fortunately, a well-researched framework and teaching model has emerged to help both new and seasoned leaders build and hone their personal leadership skills. The Multidimensional Leadership Model & Assessment, (Friend, 2020), identifies six leadership competencies and measures an individual’s proficiency in each level. Different from other management training, this model recognizes the unique skill set necessary to govern effectively. The six areas measured are consciousness, conduct, connectedness, interaction, representation, and cooperation.
The Leadership Lab website provides an online assessment tool to help individuals expand their leadership capacity, helping to serve effectively on a board. Developed by Texas A&M University researchers and co-op extension practitioners, the Leadership Lab integrates a grounded theory with practical application for leadership improvement. At the Leadership Lab, you can find the Multidimensional Leadership Assessment tool, which will measure all six competencies, providing participants with immediate feedback and suggestions to correct leadership deficiencies. Generally interrelated, competence and board effectiveness complement the qualities of the individual director, which improves dynamics in the boardroom and strengthens organizational performance (Coulson-Thomas, 1994). By assessing individual director competency and providing prescriptive suggestions for improvement, the collective board is strengthened and performs better. The Leadership Lab offers co-op directors, other boards of directors, and individuals the opportunity to learn and grow into the leaders they want to be.
If interested in learning more and accessing the multidimensional leadership assessment, go to: leadershiplab.online
References:
Coulson-Thomas, C. (1994). Developing directors: Building an effective boardroom team. Journal of European Industrial Training, 18(6), 29-52.
Friend, D. (2020). Texas agricultural cooperatives: A study in governing competencies. Texas A&M University, Dissertation.
Northouse, P.G. (2016). Leadership: Theory and practice. Thousand Oaks, CA: SAGE.
Friend, Diane. “Making Effective Board Leaders in Your Cooperative.” Southern Ag Today 4(45.5). November 8, 2024. Permalink
