In the face of unprecedented challenges in recent years, many corporate board members have stepped up to ensure the success of their organizations.
According to research from McKinsey & Company, board directors have notched a nearly 20% increase in the number of days per year they spend on board work.
Additionally:
- 14% of boards have increased the responsibilities of standing committees
- 37% of boards have increased board-management interaction between meetings
- 34% of boards have implemented significant changes to board processes
These significant operational shifts have come amid increasing complexities in the matters boards are expected to handle. Escalating geopolitical threats, tightening regulations, a rise in cybersecurity breaches, and rapidly shifting attitudes and demands surrounding ESG issues have made every director’s job more complicated than ever.
Because of the overwhelming demands, executive turnover has hit historic highs. Consequently, boards are being asked to do even more. Add to this the rise of shareholder activists who seek to pressure directors into making decisions in their favor, and it’s easy to see why many directors and high-level executives are experiencing symptoms of burnout.
Why Burnout Is Bad for the Boardroom
Burnout, which the World Health Organization characterizes as a syndrome resulting from chronic workplace stress, has cost organizations in so many ways. This phenomenon has led many employees to quit their jobs, resulting in turnover costs as high as 15 to 20% of total payroll.
While many burned-out employees simply leave their posts, that isn’t always the case with directors. For one thing, director positions are few in number and hard to come by, and also, those who have reached such a career height have developed an attitude of commitment that keeps them moving forward even when the work becomes stressful.
Still, just because a director doesn’t flat-out vacate the position doesn’t mean there aren’t negative effects that reverberate throughout the organization. These can include:
Still, just because a director doesn’t flat-out vacate the position doesn’t mean there aren’t negative effects that reverberate throughout the organization. These can include:
- Feeling exhausted or depleted of energy, lowering productivity
- Reduced professional and self-efficacy, leading to poor decision-making
- Increased mental distance from the job, causing directors to skip meetings, avoid prep work, and mentally check out
As you can see, burnout is bad for the boardroom and can negatively impact the organization at every level.
Five Solutions for Combatting Director Burnout
Helping board members avoid burnout requires a multi-faceted solution. Here are five ways that companies and boards can redesign board membership to make it more tenable for today’s directors.
1. Adding New Members to Share Workloads
In some cases, it just may be that a small number of board members have become responsible for steering the entire organization. When everyone has a lot on their shoulders, there is nowhere for board members to shift responsibilities to lighten the load.
Having too many responsibilities can not only lead to burnout but can also result in inadequate oversight, which can negatively affect the entire organization.
Adding new board members is one way to solve this problem. With an expanded board, the full gamut of responsibilities can be spread among more people, ultimately lightening the load for everyone and allowing individual directors more time for deep and comprehensive oversight.
2. Setting Clear Guidelines and Responsibilities
Increasingly, board members have taken on many responsibilities that may have traditionally belonged to the management team. In some cases, board members worry about relinquishing the reins. Board members may also lack clear guidance for their leadership roles.
In both cases, boards should delineate which tasks fall to the management team and which belong to the board. As a general rule, the board should be involved in directing, enabling, and protecting the organization while the management team leads the actual work of the organization.
Having clear roles and responsibilities prevents board members from taking on unnecessary tasks and can ultimately reduce stress.
3. Rotating and Limiting Leadership Roles
Allowing board members to rotate leadership roles can help reinvigorate them in their work, resulting in renewed engagement and greater productivity. It can also ensure that every director gets to work on tasks that highlight their strengths and expertise, something that can also deepen engagement and boost motivation and morale.
Though taking on new leadership roles can be exciting, it’s important that board members don’t take on too much. This may mean that boards need to limit the number of outside board seats that any one director can hold. This ensures that directors are able to give each role the attention it deserves and uphold their fiduciary duties to the organization.
4. Creating Special Interest Committees
Forming committees can help distribute the board’s workload across smaller groups. It can also reduce the full board’s meeting time, as committee members can hold more granular discussions and then present their findings to the board. This reduces the board’s need to get bogged down in the details of every issue.
Additionally, working in committees allows members with specialized expertise to contribute meaningfully. It also gives directors a clear picture of how their work directly contributes to the company’s mission. This can further deepen their commitment to the role.
5. Checking in With Individual Directors
It’s a good idea for board chairs to periodically check in with individual directors to see how they’re doing on a personal and professional level. Engaging as a board member can get overwhelming, especially for new members or those working to convince others to consider new ideas and push the limits of the status quo.
It’s important to have conversations about how directors are feeling, what their major concerns are, and whether they’re still passionate about the role. These check-ins can go a long way toward helping directors acknowledge feelings of burnout early on and take the necessary steps to keep it at bay.
Help Your Board Members Stay Engaged for Long-Term Success
These days, board members are being asked to take on more than ever. They’re spending longer hours working through complex issues and grappling with high executive turnover. Many are experiencing burnout as a result, which can often lead to disengagement and poor decision-making.
Fortunately, there are ways to combat burnout. Adding new members, limiting leadership roles, and setting clear responsibilities can help members avoid spreading themselves too thin. Rotating roles and adding specialized committees can keep morale and engagement high.
Above all, it’s important to remind board members that their work and their well-being matters to the organization. When directors are healthy and happy, the entire company will reap the benefits.
