Governing in Turbulent Times
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Future Directors Founder, Paul Smith
ONE THING is for the busy (speak of the devil) Future Director, in which we pick just one thing Future Directors oughta know or do or stew on for the next month. We hope you get something (at least one thing) out of it.
Look, we're living through some pretty wild times. If you thought pre-2025 was a bit VUCA (Volatile, Uncertain, Complex, Ambiguous), this year has been a humdinger.
Politics feels like a daily soap opera, the climate crisis isn’t going away, everyone still seems exhausted, and technology appears to be changing faster than most of us can keep up. If you're on a board of directors right now - of any type of entity - it probably feels like you're constantly putting out fires, jumping from one challenge to the next.
And, that’s where the truth lies…many boards are drowning because they've forgotten the reasons they exist in the first place.
And I don’t mean legally.
What is a Board’s Purpose?
When I say purpose, I don't mean an organisational mission statement or maximising profits to shareholders. I mean, the reason your board matters. The thing that should guide every decision you make. Think of it like this. When everything’s a challenge, purpose is your compass. Without it, you end up making knee-jerk decisions, freezing up completely, or just going through the motions to look busy.
Boards exist to steer companies toward long-term value. However, in turbulent times, it’s all too easy to lose sight of how a board adds value. It’s certainly not a constant state of reactivity. My antidote? The relentless focus on the board’s purpose as the source of authority, legitimacy and impact.
When boards default to a company-centric view of “how do we serve shareholders?” or “how do we manage risk?” they fail to ask a deeper question of “what is the board here to do, regardless of internal and external pressures?” A clear board purpose is the north star that can align every discussion, every decision and every crisis response.
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