HOW BOARDS CAN CREATE VALUE STRATEGICALLY
Recently 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.
Raph likens it to De Bono Hats for the Boardroom and c-suite. The power of DLMA comes from breaking three old truths:
Value is not exchange value or money
Directors don’t just govern
Directors and executives work on the same team
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.
