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A growing lack of trust in executive teams is pushing non-executive directors into more operational roles, blurring traditional boundaries between boards and management, reveals a Heidrick & Struggles report.

Boardroom trust deficit prompts non-executive directors to take on operational roles

The traditional divide between non-executive board directors and senior management is eroding, with a significant number of business leaders expressing concerns about the capability of executive teams to deliver results.

According to a new report from Heidrick & Struggles, over a fifth of business leaders believe that boards do not “fully trust” their executive teams “to get things done.”

The annual report, which surveyed more than 3,000 CEOs and directors, including those from FTSE 350 companies, highlights a global and UK trend where board members are increasingly stepping into operational roles, creating tensions within the boardroom. This shift is largely driven by mounting pressures from investors, regulators, governments, and the media, along with the growing complexity of issues such as artificial intelligence, cybersecurity, and environmental, social, and governance (ESG) responsibilities.

Kit Bingham, partner and head of UK board practice at Heidrick & Struggles, noted that these developments are leading to heightened expectations and challenges for boards, making their roles more demanding than ever. In the UK, nearly three-quarters of respondents reported that board members are more operationally involved, with 22% saying this happens frequently and 49% occasionally. Notably, chief executives more often reported this trend compared to directors.

The motivations behind this increased involvement vary. In the UK, 43% of respondents cited a desire to better understand operations, while 21% pointed to the heavy demands on a CEO’s time and capacity. However, the most troubling finding was that 22% of respondents believed this operational involvement stemmed from a lack of trust in the executive team’s ability to “get things done.”

Alice Breeden, a regional practice managing partner at Heidrick & Struggles, observed growing tension within the boardroom system, suggesting that boards are spending more time than necessary on operational matters to reassure themselves that executives are effectively managing the business.

Operational involvement by boards varies across sectors and regions, with the financial services sector globally reporting the least engagement.

Mark Cutifani, former CEO of Anglo American and current chairman of Vale Base Metals, contributed to the report, emphasising the changing role of the board. He noted that the complexities of today’s business environment demand more active involvement from boards, as chief executives may lack the experience and capacity to handle these challenges alone.