While written with the Russian invasion of Ukraine in mind, this has wider application. Their thoughts are organised into three main themes:

1. Elevate communication and engagement, while minimising distractions
2. Don’t lose sight of the long term or indulge in wishful thinking
3. Don’t neglect culture, behaviours, and leadership.

1. Elevate Communication And Engagement, While Minimising Distractions

Establish clear communication channels and a predictable communication cadence

For boards, the authors highlight three communication channels as being the most important:

1. between the Chief Executive and the board chair
2. between the Chief Executive and the full board
3. between the Chair and the board.

They say that effective communication alleviates stress, serves as an outlet for new ideas, and enhances information flow without overburdening executive teams. For companies significantly affected, weekly (or even more frequent) calls between the chief executive and chair will be necessary; for others, an update on impacts at the next regularly scheduled board meeting may be sufficient. They also advise that, with the chief executive’s workload in mind, s/he should be able to share reports with the board on key performance indicators, without having to refine or add
commentary.

Curb—and channel—the board’s enthusiasm

A challenge for the chair is to manage well-intentioned directors who are eager to assist management. Their involvement may overwhelm an already crowded effort and bog down management teams with distracting requests. The challenge is to strike the right balance between keeping the board informed while also giving the management team clear guidance and room to operate.

Step up, but don’t overstep

In normal circumstances, the line between governance and management is usually well defined and understood. In a crisis, however, that line may be much less distinct. The challenge for the board is to support management in the right way, at the right time, without trying to manage the company. In a crisis, the board’s primary contribution should be asking the right questions and testing management’s assumptions. At the same time it is important to express genuine appreciation for and encouragement of a hard-pressed management team.

2. Don’t Lose Sight of the Long Term or Indulge in Wishful Thinking

Challenge the optimism of the worst-case scenario

With optimism bias in mind, Kelley et al suggest boards need to test executives’ scenario planning. This is often based on the worst that has ever happened in the past, not the worst that could happen in the future. Management needs to plan for those unprecedented scenarios and work backward to more likely events. The authors also point to the need to maintain momentum throughout a recovery period that may linger far longer than expected, and involve new risks not anticipated at the start.

Plan for permanent changes

Boards need to be ready to challenge management’s thinking about how the crisis has fundamentally shifted business operations and which changes will permanently affect the company’s strategic direction. Boards must consider which aspects of the business should remain the same, which will briefly change, and which have been permanently disrupted. Boards should also ensure that there is attention to lessons from this crisis that will help make the organisation more robust in future.

Elevate the post-recovery narrative

While a crisis rightly drives an emphasis on solving urgent problems, it is equally critical for the board to maintain a forward-looking agenda and keep focused on the long term. The authors recommend the board serve as a thought-partner to management, helping them, for example, to think through what the business and customer focus ought to be going forward. The board should also prioritise discussions that contribute to the company’s recovery narrative (e.g. about seizing opportunities to better meet stakeholder needs).

Avoid prematurely assuming the crisis is over

It is important that neither directors nor executives get a false sense of security once indicators start pointing in the right direction. Recognising there are often aftershocks to a crisis, boards need to keep everyone focused on performance and outcomes not only throughout the crisis but long after it appears to be over.

3. Don’t Neglect Culture, Behaviours and Leadership

Set the tone

Boards will be defined by how well they set the organisational tone during a crisis, and how well they model that tone themselves. The authors contend that boards that act quickly to reinforce a strong, compassionate, and positive culture with both internal and external stakeholders will benefit the most when the crisis has passed. They remind us that employees, customers, and communities make judgments based in part on how the board behaves.

Closely manage and monitor board culture and behaviours

The stress accompanying a crisis tests directors in new ways, and their engagement with each other sets the tone for how effective the board will be. Chairs need to step up their efforts to ensure themboard’s culture and behaviours create the right atmosphere to guide and advise the management team.

Be alert to what the crisis reveals about leadership teams and succession pipelines

During a crisis the board will see which executive leaders rise to meet new challenges and inspire confidence — and which do not. This will say a lot about the internal succession pipeline. What was missing from the team, and what behaviours and leadership qualities were or were not on show?

Remember that the ‘soft stuff’ matters more in hard environments

The authors advise directors not to underestimate the power of saying ‘thank you’ and asking specifically about how the leadership team, their partners and immediate families are holding up. Small words or gestures are likely to have a big impact on a management team that is working hard to protect and resurrect the business. Boards should express gratitude and celebrate small wins along the road to recovery.