Why every board needs systemic team coaching®

The latest Boards and Society report by Heidrick & Struggles reveals a disconnect at the highest levels of corporate leadership. Amid growing pressures - ranging from sustainability imperatives and geopolitical risks to the rise of generative AI - board directors and executive leaders are struggling to align.

Nearly a third (29%) of directors expressed doubt in their CEOs' ability to tackle these complexities while delivering long-term shareholder value. Equally troubling, 26% of CEOs lack confidence in their boards’ capacity to meet these challenges. Without concerted efforts to bridge this gap, such divisions could risk paralysing decision-making and stifling progress.

Jeremy Hanson, a partner at Heidrick & Struggles, warns that alignment between boards and management is: “essential for addressing both today’s challenges and those of the future.” One increasingly effective way to build this alignment is through systemic team coaching®.

Systemic team coaching: an essential tool for boards

Systemic team coaching provides a framework to enhance collaboration and strengthen governance. Unlike traditional team coaching, which often focuses narrowly on interpersonal relationships, systemic coaching looks at the team as part of a wider connected network. This approach addresses dynamics within the team, its relationships with stakeholders and the impact of external factors such as technological or political changes.

For boards, this type of coaching fosters trust, improves decision-making, and ensures alignment around shared goals. Karen Smart, head of organisations at the AoEC, explains: “Systemic team coaching helps boards build a deeper understanding of the complexities they face, both internally and externally. By developing a shared sense of purpose and equipping directors with tools to engage constructively, it can transform boardroom dynamics and strengthens their ability to drive meaningful change.”

Preparing for a world of uncertainty

The Heidrick & Struggles report highlights the evolving expectations placed on boards, with 77% of respondents stating that directors must address societal concerns alongside business priorities. Yet, directors frequently find themselves overwhelmed by the sheer volume of pressing issues. Sustainability, generative AI and geopolitical risks are just a few examples of the interconnected challenges now dominating board agendas.

Systemic team coaching can help boards rise to these demands by creating the space to focus on long-term, purpose-driven strategies. Boards coached in this way are better equipped to:

• Scan the horizon for emerging risks and opportunities: Coaching helps boards identify weak signals of disruption, from sustainability shocks to rapid technological advances.

• Navigate complexity with agility: By embracing systemic thinking, boards develop resilience and adaptability, essential for tackling uncertainty.

• Align stakeholders around common goals: Coaching ensures directors can better understand and balance diverse stakeholder expectations while maintaining a clear sense of direction.

Karen Smart adds: “Uncertainty will always be a constant, but systemic team coaching gives boards the tools to turn potential threats into opportunities. It’s about fostering collective intelligence and resilience so they can lead with confidence, even in the most challenging conditions.”

A new model for board governance

One of the key findings in the Boards and Society report is the need for boards to evolve beyond traditional governance models. Historically, boards have been compliance-focused, often operating with a “rearview mirror” approach. Today’s rapidly changing environment demands forward-looking strategies and adaptability.

Systemic team coaching supports this evolution by embedding a mindset of continuous improvement and collaboration. It helps boards move away from rigid structures to embrace a governance model that is both dynamic and proactive. Directors coached systemically are better positioned to define the organisation’s purpose, empower management and ensure decisions align with long-term objectives.

Building trust and alignment

The friction between directors and executive leaders, as identified in the Boards and Society report, emphasises the importance of trust in the boardroom.

This finding aligns with insights from an excellent study published in Harvard Business Review by Next Advisors, which describes three main patterns of dysfunction that leadership teams tend to exhibit. The first, characterised by infighting and political manoeuvring, is referred to as a “shark tank.” The second, defined by conflict avoidance and an overemphasis on collaboration, is called a “petting zoo.” The third, marked by complacency, a lack of competence and an unhealthy focus on past success, is known as a “mediocracy.”

These dysfunctions all negatively impact team and corporate performance and can be equally disruptive. Ensuring trust and alignment is therefore critical for overcoming these dysfunctions and helping teams work cohesively towards shared objectives.

Systemic team coaching plays a key role in this, by promoting openness, collaboration and accountability among team members, ultimately contributing to stronger, more effective leadership.

Investing in board effectiveness

As the role of boards continues to expand, systemic team coaching is becoming an essential investment for organisations striving to remain competitive. By fostering alignment, resilience and adaptability, employing the services of a skilled professional systemic team coach can help boards to meet the demands of modern governance while positioning their organisations as leaders in a fast-changing world.

“Systemic team coaching is not just about solving immediate challenges,” Karen Smart concludes. “It’s about equipping boards to lead with purpose and impact over the long term. For any organisation looking to thrive in the face of disruption, this is a critical step forward.”

Every board should consider systemic team coaching not as an optional extra but as a cornerstone of effective governance.