How Boards Can Create Value Strategically

I just came across this excellent summary of the DLMA framework by Managing Director of Better Boards Australasia, Raph Goldworthy.

For those new to DLMA, Grant Thornton UK sums it up this way:

It is a simple yet powerful tool which provides a framework with which to evaluate how well an organisation is performing regarding the balance of skills, understanding of roles and responsibilities between the executive and Board and the alignment between the balance of energies between risk (value protection) and opportunity (value creation) and the overarching strategy and purpose.

Likened to De Bono’s hats for the boardroom and c-suite, DLMA thinking breaks the three unbreakable rules of corporate governance:

• Value is not exchange value or $.

• Directors don’t just govern.

• Directors and executives work on the same team.

Exposing the contradictions at the core of director education and providing a much needed new direction in directing.

First created in 2013, Raph explains why DLMA matters:

Don’t become trapped in governance as compliance. DLMA provides a framework for the partnership between the board and executive. It highlights the different “hats” board members wear, giving us a framework to think clearly about the doing of being a board member. Allowing a synergy to drive strategy, innovation and growth. While also putting guardrails and accountability in place. Use the different roles of DLMA to help your board to be strategic about how it protects and creates value.