80. Misinformation in the Boardroom

Misinformation will corrupt any decision process.  How important is it to manage the risk of misinformation in the boardroom? SCRIPT: Paul Smith from Future Directors Institute was a guest on OMG a couple of weeks ago. Future Directors hosts an annual event called Decision84 which, well, you should do yourself a favour and just look it up since, you know, I only have 90 seconds or so here. On a panel at this year’s Decision84, a participant asked us a question about handling the increasing likelihood that directors will be compromised by misinformation. It’s an astonishing question, and an almost literally unbelievable set of circumstances that have led us to a point where the question is relevant – urgent, even. I’m going to give you my calm and thoughtful position instead of my entirely out of patience rant. The most important trait of an effective director, in my opinion, is not related to professional or technical expertise, or management experience, or education, or demographic diversity. We already have good ways to select directors based on those factors and none of them are going help with this misinformation nonsense. An essential, critical characteristic for any board member – one you should NEVER compromise on – is the willingness to change one’s mind when presented with relevant and accurate new information. Sure, directors might need time to verify or trust new information but they also MUST have the capacity to carefully differentiate between what is opinion and what is fact, what is speculation and what is certainty, what is reliable and what is deceitful. And they should do so with open mindedness and curiosity. Without that, all the experience and expertise in the world won’t save your board from the curse of misinformation.