Chairing the board of a Growth Business | Peter Herbert, Chair Zopa Bank and Bank of Ireland

I met my podcast partner for this episode when conducting a board evaluation for a growth company in the Financial Services sector. What struck me was the positive view everyone on the board had about the way the board works together. We have detailed benchmark data, and also, when we compared this board with others, it came out as one that is performing better. So, I immediately thought that I must invite the Chair, Peter Herbert.  So here we are. Peter is a Non-Executive Director and Adviser with an impressive Executive career. He is chairing the Board of Bank of Ireland (UK) plc and Zopa Bank, the banking subsidiary of Zopa Group, where he also sits on the Group Board. He is also a Non-Executive Director of WiZink Bank, where he chairs the Appointments & Remuneration Committee.  Previously he was a Non-Executive Director and then Chief Executive Officer of Tandem. “Being an effective board is a team game”Peter emphasises the importance of teamwork on a board, stating how there is no room for ego or disruptive behaviour.  However, this is not the same as a ‘groupthink’ approach or not challenging other board members when necessary.  He feels that as a “conductor” of the board, a Chair is responsible for a board focusing on shared goals, as well as ensuring board processes run smoothly and effectively and as a collective is greater than the sum of its parts.“Who isn’t motivated by building a successful business?”Peter believes that working with growth businesses is both fun and motivating. Still, he cautions about managing growth, especially where these businesses have private equity investors, who can be demanding owners. He highlights the need to get to know board colleagues as individuals, looking at what works and what needs to change, and in the case of a growth business drawing up a “prioritised development plan”.Peter says that the role and purpose of a board are to ensure there is the right vision, purpose, strategy, and culture as well as the right resources and governance to achieve them.  From a board point of view, the nature of each of those components is likely to be different in a growth or restructuring business, but in both cases, the same components are necessary.“Being a good board colleague is the key thing”Peter emphasises the importance of being a good board colleague, which involves listening carefully, constructively putting your point across, building good relationships with your stakeholders, and not making assumptions. “A good Company Secretary and their team are worth their weight in gold”Peter feels that a Company Secretary and their team are worth their weight in gold and that frequent and open dialogue with them is vital, stating how they can spot potential pitfalls, going through meeting agendas, and producing concise, accurate meeting minutes that can be very important, especially in a regulated business.  “Oversight of the effective execution and implementation of strategy is also a key role of the board”Peter describes that most businesses have periodic strategy sessions because strategy isn't a static topic. He believes that one way to address this point is also to have a standing strategy item on every board agenda, where the board can discuss such matters on a regular basis. The three top takeaways are:1.      Boards should not overcomplicate their role2.     Working as a chair can be daunting and hard work, but also fun3.     There is no silver bullet- boards need to have the right people, work together, and have supportive, effective processes to make the board function effectively