Three major storms, preparation, and boardroom decisions, with Mike Soutar, Entrepreneur

"I'm never on a board that says maybe. It's either yes or it's no. Yes is a much easier word to say. No is harder, but no is often the most important." 

This week's guest on the Boardroom Confidential podcast is Mike Soutar, entrepreneur, media executive, and star of the UK version of The Apprentice. 

He shares the boardroom stories that have shaped his career, including facing the board when the launch of a new business didn’t go to plan, how proper preparation helps him make better decisions, and how to effectively overcome groupthink. 

Mike argues that three major storms - AI, generational change in the workforce, and geopolitical instability - are hitting companies simultaneously, and that requires an evolution in how businesses are led. 

Mike co-founded Shortlist Media, and previously held senior leadership roles at iconic media brands including FHM, Smash Hits, and Kiss FM. He currently serves on the UK government's Board of Trade and as a non-executive director at Scottish Rugby and the V&A Dundee.  

His new book, “Next Gen CEO: 60 Lessons for Leaders in an Uncertain World”, is out now. 

Boardroom Confidential is brought to you by Sherpany, a leading meeting management solution, designed to meet the unique needs of the board, board committee, and executive meetings. 

Key takeaways

Speak up when the board is making the wrong call

(07:05)

I have sat in boardrooms where I can see that a decision which I definitely would not make, which I think is the worst decision, is gathering pace and gathering momentum. [...] Earlier in my career, I would probably look around the room and think, many of the people in the room are more experienced than I am. I’ll stay quiet. I can’t do that anymore. I won’t do that anymore. I have to have the courage of my convictions.

I will now speak up, and I will do so constructively, but without ambiguity. I’ll be really clear. I don’t care if that makes me really unpopular. [...] Boards are terrible at saying yes and terrible at saying no. So they’re very good at saying maybe. And I have worked all of my board career to try and make sure I’m never in a board that says maybe. It’s either yes or it’s no. Yes is a much easier word to say. No is harder, but no is often the most important.

Preparation gives you the freedom to change your mind

(09:25)

I think great . [...] I always prepare because, frankly, I’m too scared not to. I can’t turn up at a board meeting if I haven’t read the board papers. I’d rather not be there at all because I’ll get caught out and I’ll be useless if I’m trying to catch up.

I’m very clear about my point of view on those things, and that allows me to not be trying to do the work in the room. It allows me to be curious and open to what other people have got to say. I have seen multiple times where really good people go into a board meeting with a clear point of view, and by the end of the board meeting, they have changed their point of view. I really respect that. It means it was a good board meeting and they are a really excellent board director.

In a crisis, attack the problem, not the person

(12:50)

There was no hiding from the non-executives. We had to account transparently. It was good for me because I had to face up to what the difficulties were [...] Even if I felt like I could kid them, I’d maybe only be able to do it once or twice, but that would catch up with me and, as a result, my credibility would be ruined as a leader. So it made us make difficult decisions, cost-cutting decisions, early, and as a result of that, at no point did we run out of money and we came through that.

[...]

What I learned was, when a business is in crisis, there’s no requirement to be nice about it. You can, of course, be personally compassionate because you can appreciate that the founder and the founder’s team are going through hell right now. But this is not a personal issue. You’re attacking the actual problem. And I think you have to back them so long as they’ve demonstrated that they truly understand the level of seriousness of the situation they’re in, they have a credible plan, and they’ve made the promises that they’re going to keep you up to date with it.

Three simultaneous shifts demand a rethink of leadership

(15:33)

I think we’re now in an era which has three really major storms. AI is going to utterly change not just what we consume, but how we consume it. It’s going to change the nature of work and jobs. [...] You have a complete change in the workforce, a very new generation coming into the workforce. There used to be a contract, and the contract was: if you work really hard, then you’ll be a success. And the success is you can afford a deposit to get a home, you can afford a car, you can start a family.

[...]

And then I think the third thing is geopolitical instability. [...] We now have a situation where geopolitical movements, big shocks, are impacting even tiny, tiny businesses. And so with any one of those three changes on its own, I think it would cause you to review the way that you are leading. All three of them happening simultaneously, I believe, mean that you must review how you engage with and connect with people and how you lead.

In a crisis, use tactical decisions to create momentum

(24:12)

A tactical decision is one that you can make and, if you get it wrong, it’s a bit embarrassing, but not impossible to remake it. You tried something, it might have worked, it didn’t work. Actually, I’m going to quickly change that. You don’t lose much time, you don’t lose much credibility from doing that. A strategic decision is a one-way gate. Once you’ve gone through it, you can’t go back again.

[...]

Any organisation that’s in crisis needs momentum. It needs to feel like it’s going forward. Otherwise, the people inside it will lose faith. Its customers will lose faith. Everything will just stop. [...] The thing that gives organisations momentum is decisions. So go to your tactical decisions and start making them at speed, in the knowledge that they will give the organisation momentum and that most of them you’ll get right. That will create a sense of win that will infuse the entire organisation. [...] It will buy you time to do the work that you need to do on the strategic decisions in order to get those right, to position them properly with your board, and to really understand the consequences of them.