Dr. Lwanga Martin Mwanje
Kasulu started out as an entrepreneur vending tapes. However, to widen his base, he together with some of his friends decided to launch an FM radio. Although Kasulu was charged with the day to day running of the business, as this was a partnership, he had to report on the performance of the company to the board, every quarter.
When once Kasulu failed to report on the company performance, he was put to task by the Board. “We need to know what is going on,” the partners brought the matter to his attention. However, Kasulu having got used to doing things his way, did not fancy having to regularly report on his work. “But can’t you people trust me!” He tossed the matter back to the Board. “So long as at the end of the year we make a profit and I give you your dividends, why should you be bothered with these petty matters?”
The Board saw the situation differently and insisted that being reported to was not a choice. It reasoned that the purpose was not to frustrate Kasulu but to make sure there was transparency in handling the affairs of the company. “As members of the board we have our interests at stake and represent other shareholders,” a member argued. “If we are not regularly informed and things go wrong we might suffer loss and be accused of negligence.”
Hating this kind of cross examination, Kasulu decided to quit the partnership. “Let them find another manager!” Soon later, he was offered a job at a government regulatory communication agency. Kasulu took on his new job with zest, offering fresh brilliant ideas which he pushed for. But he run into a major problem; always he had first to seek permission from the Board for any of his ideas to be implemented. “This is very frustrating,” he thought to himself. “The Board should just let me run the show and wait for results.”
One day, in one long meeting, a fight broke out between Kasulu, and the Board chair. After studying the organization Kasulu was convinced that it was best to restructure it to help it perform better. But the Board was not buying any of his proposals pressing more of continuity. “The restructuring you propose is too costly!” Kasulu was advised to shelf the idea. “We need stability.”
But Kasulu wasn’t amused. “I am the one who knows more of what is going on!” He stormed out of the meeting, thinking of quitting. However, just as he was about to hand in his resignation, one member of the Board called him up. “I notice you are quite mad at the fact that the Board is checking on you. But let me tell you if you want to enjoy your term as CEO you are better off finding areas of agreement with the Board than fighting it.”
“What do you mean?” Kasulu asked, blankly.
“If you spend more time as you are doing fighting the Board,” the member went on. “You are bound to lose. You serve under and at the mercy of the Board. Either you choose to cooperate or the Board will have to fire you!”
Kasulu thought the matter over. He knew that one reason why he had given up his sole trading outfit and entered a partnership was because alone he couldn’t achieve as much. Easily, it became clear to him that if he was to work with others there was no escape from being accountable. Just like his Board member had advised, it was better to find areas of commonality with the Board than fighting it.
Once he decided on this avenue he actually got to enjoy his work and had a successful stay in his new job, till he handed over. Of course, it all involved a bit of humility on his part especially when it came to seeking consent from his bosses, on every important matter. Sometimes he won. Sometimes he lost. Sometimes it was a compromise. That was the game.
The relationship between Managers and their Boards is one of the most critical in the management of operations. At various times it could break down largely on the question of who has more power. Where most organizations are concerned any accounting officer serves at the mercy of the Board. The best option is for managers to seek common grounds than going into a losing battle.
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