Maija-Liisa Friman on board work during COVID-19
Maija-Liisa Friman on board work during COVID-19
Recently I had a discussion with Maija-Liisa Friman, a seasoned board professional who also has been nominated several times as the most influential business woman in Finland. She shared her thoughts, experiences and advice for what boards should do during COVID-19. Throughout her career Maija-Liisa has been a board member of several of the most prominent companies in Finland and the Nordics. Some of the best known ones include, Finnair, Telia, Metso Neste, LKAB and Essity. According to Maija-Liisa, the COVID-19 crisis is something we’ve never seen before and it is really interesting to hear her views on how to navigate through this demanding situation.
When comparing the corona crisis with previous crises with significant impact on business and society in general, such as the Oil, IT, Financial/Banking crises, Maija-Liisa points out that there is no clear manuscript for how to successfully handle this situation. Not only are the effects of the crisis unforeseen, but the crisis has also created new interdependencies and brought in new stakeholders, such as public sector institutions.
Given this uncertainty, Maija-Liisa calls for boards to stay calm and not to panic. This isn't an excuse for being reactive. Rather, boards need to systematically consider what is actually changing or has changed, instead of acting on a hunch or making hasty assumptions. Now if ever, there is a call for well-thought decisions. This is also the time to keep a tight focus on the company purpose. As the board is truly challenged, holding on to the purpose and values of the company provides needed direction. Over time, we can't expect development to be linear, as it hasn't been for a long time, so now there is no other alternative but to lay down the routines of working with long-term strategy. Nor is this crisis going to be over anytime soon. It might well transform global value chains and operational structures. Boards need to increasingly focus on the balance sheet and having the finances in order.
Maija-Liisa has some solid advice to board members and chairs on how to interact in the board room as well as with the management team. Successful leadership and board work are based as much on collaboration as it is on strategic thinking and decision making. And so, although this is a time when the board needs to understand what has changed in the market, it is not the time to put pressure on operative leadership for increased reporting. Pushing and trying to control the CEO might feel like a tempting option to cope with uncertainty, which is further emphasized by the lack of face-to-face interaction. But increased pressure is not the solution. Instead, now more than ever, there is a need for trust. Communicating actively that board members and chairs are available and supportive is the way to go. Sticking to one-page traffic light reports is better than having the CEO and CFO getting bogged down in creating detailed reports. As a chair, trust the CEO to reach out in case of significant movements and that you can trust high-level strategic reporting over details.
Finally, Maija-Liisa stresses the need for a board member to focus on positive attitude as well. It is important to ask and listen how the board members and the management team members are doing. Asking about the families and remembering to pick up the phone from time to time to say thank you is highly appreciated.
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