Life in the boardroom is evolving; strategy sets direction but culture, behaviours, and reward determine how well and how quickly objectives are achieved.

Boards are more than decision-making bodies; they are the custodians of organisational culture, strategic alignment, and long-term value creation. In the most recent Life in the Boardroom webinar, moderated by Katya Gorbatiouk (Head of Investment Funds at the London Stock Exchange), Paul Norris (Senior Partner, MM&K), Kieran Moynihan (Managing Partner, Board Excellence), Fiona Hathorn (CEO, WB Directors and Portfolio NED), and Sallie Pilot (Managing Director, The Investor & Issuer Forum) explored how boards are evolving to meet today’s complex challenges.

Paul Norris emphasised that boards set the tone for organisational culture through the decisions they make, the behaviours they reward, and the transparency they model. Remuneration committees are balancing short- and long-term incentives to reinforce behaviours that support strategy and purpose. Bravery and openness in board discussions signal to the wider organisation what behaviours are valued.

Shareholders now expect every director to add measurable value. As Kieran Moynihan noted, boards are using real-time data and AI tools to strengthen scenario planning, risk oversight, and strategic decision-making. External evaluations focus on practical effectiveness, ensuring boards actively guide organisational direction rather than just tick compliance boxes.

Alignment between boards and investors remains a key challenge. Sallie Pilot observed that systemic frictions (rising expectations, inconsistent transparency, and accountability gaps) can slow progress. The Compass from the Investor & Issuer Forum offers principles to guide alignment across the investment chain, focusing on long-term sustainable value creation. Fiona Hathorn stressed that open, decision-useful dialogue is essential to navigate diverse stakeholders, from institutional asset managers to vocal retail investors, and to reinforce long-term priorities.

Boards are accountable for their own capability and governance. Paul, Fiona, and Kieran highlighted the importance of ensuring directors bring the right mix of skills, diversity of thought, and courage to challenge constructively. Succession planning and continuous development ensure the board can sustain culture, drive performance, and respond to evolving organisational and market demands.

The practical insight is clear: boards are no longer passive overseers. Every decision on remuneration, risk, succession, or investor engagement sends a signal that influences behaviours and organisational performance. Misalignment or inaction can slow strategy execution, erode trust with investors and other stakeholders, and jeopardise long-term value.

To respond, boards should take stock of whether strategy, culture, behaviours, and reward are fully aligned, deepen engagement with investors, evaluate the contribution and capability of each director, and encourage open, courageous discussion in the boardroom. Boards that act decisively on these fronts will turn culture and governance into a strategic asset, driving resilience, performance, and long-term value.

Watch the full session  to hear the speakers’ perspectives and practical advice on board effectiveness, investor engagement, and remuneration strategy.

MM&K is positioned to provide independent advice and support to help firms ensure strategy, culture, behaviours and reward are aligned to achieve sustainable long-term value. To learn more, please contact tamsin.howells@mm-k.com or stuart.james@mm-k.com.

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