Politics is a fact of life in organisations. Therefore leaders need to act politically as well as analytically. The Eskom board was not immune to the highly charged tone before the national elections and the post-election changes of our political landscape.Parastatal boards comprise individuals who should have political sanction. Thus, it is not inconceivable that members are susceptible to "external sponsorship" and its influence on behaviour, attitudes and power relations of the board as a whole. Nor is it implausible that political behaviour from individuals could scuttle a board's proper functioning.
The Eskom board under the leadership of Bobby Godsell was characterised by uncertainty and turbulence, and should be appreciated in that context. In a period of turmoil, board members should look beyond the starkness of an issue and acknowledge the interests, fears, aspirations and loyalties of the factions that have formed around it. After all, boards comprise individuals with different values, goals and interests. That is why personal attributes like integrity, willingness to engage in constructive discussion and the fortitude to make tough decisions are essential requirements for board members.
Godsell, as a chairman, may have tried to de personalise disagreements on strategic decisions that had to be made, and to focus the directors' energies on issues rather than on "interests". Political behaviour is more a function of the organisation's characteristics and the external environment than the effectiveness of the chairman alone.
The criticism that can be levelled at the Eskom leadership is whether its timing in revealing its reservations about the performance of the CEO relating to energy security, capital raising and so forth was proper. If the responsibility of the board, according to the Public Finance Management Act, is "to act with fidelity, honesty, integrity and in the best interest of the public entity", were its actions prudent? Did the organisational performance concerns outweigh what may seem, in hindsight, a lack of appreciation for the sentiments that would be unleashed in accepting CEO Jacob Maroga's "resignation"?
It can be argued that the board performed its duty responsibly by expressing its considered dissatisfaction, and by acting on this regardless of the fallout, informed by the financial and strategic information at its disposal.
Leadership is an improvisational and experimental art. Boards have to ensure that organisations are able to meet today's challenges by being adaptable in getting things done in order to thrive in tomorrow's world.
Parastatal boards need to have the guts to confront loyalty to legacy practices, or to individuals for their own sake. They should understand that their desire to change things will open them to attack from interested groups. To remain relevant, boards need to create a culture of courageous discussion, where the most difficult topics are broached and decisions taken.
As a democracy, we need to ensure dissenters on these boards, and external interested parties, are protected from pressure to keep them silent. Nor should they be forced to give credence to populist analyses of what might have informed decisions by the Eskom board. We must also be mindful of all perspectives because underlying these could be dependencies among players within and outside the organisation who have personal agendas we are not privy to.
Msomi is CEO of Busara Leadership Partners
Ranking the Analysts 2009
