Lately it seems like the role of the board director is getting more difficult each meeting. When asked what they’re having a hard time overseeing, directors cite a litany of issue areas in
our research at Diligent Institute: technological developments (including AI), innovation/IP, capital allocation, contingency planning, and succession planning chief among them. In this hectic, challenging, and AI-fueled moment, I’m reminded of the importance of human courage and candor in the boardroom.
A board can look remarkably healthy from the outside. The agenda is uncomplicated, the discussion is cordial and decisions are recorded with apparent consensus. Yet a smooth board meeting is not always a rigorous one. Sometimes the most important contribution in the room is the question that interrupts that sense of ease.
When nobody challenges an assumption, asks a difficult question or raises a concern, a board may appear aligned without ever fully testing the decision in front of it. That is why boardroom candor is so vital.
Directors may see different pieces of the picture: an operational warning sign, a stakeholder perspective, a financial implication, or a question about whether the organization is prepared for a changing environment. These days, they are also
leveraging AI to augment those diverse perspectives. But if those observations are unspoken, the board is not benefiting from the full range of its collective judgment.
What does the right type of candor look like?
I had a conversation over LinkedIn with Michael Marquardt, board member at Commonwealth Trust Company and Strategic Partnerships, LLC, about this topic. “Effective candor is not about saying the difficult thing at any cost,” he wrote. “It is about exercising the judgment to raise the right issue, at the right time, in a way that improves the board’s decision-making. The best boards create enough trust that silence can be challenged without making every disagreement a performance. That balance is where real board effectiveness lives.”
For me, useful boardroom candor has four qualities: