Networking without networking: Why effective directors rely less on cocktails and more on credibility

Independent directors are expected to exercise autonomy in decision-making, oversight and thinking. Independence is rightly a cornerstone of good governance.

An effective director should exercise critical evaluation independently and make decisions based on valid, factual information, rather than be swayed by groupthink (social or normative pressures).

Yet, independence should not be mistaken for isolation.

Board members guided only by board papers and formal meetings risk being detached and out of touch. The most effective directors have a good, trusted network – not by wining and dining, but through relationships built over time with trusted peers.

Board decisions are people decisions

Board work is often portrayed as analytical and procedural. There are papers to read, risks to assess, viewpoints to consider, and decisions to make. But anyone who has sat through real boardroom discussions knows that decision-making is rarely linear.

Board decisions are multi-dimensional. They involve commercial trade-offs, regulatory uncertainty, ethical judgement, stakeholder interests and, crucially, human behaviour and impact.

All this takes place under time pressure and with imperfect information. Directors are expected to exercise sound judgement across domains that may be new, fast-changing and marked by unpredictable outcomes.

Complex issues may require deeper deliberation outside the boardroom.

In such moments, directors often turn to their trusted network of peers to seek fresh perspectives, test assumptions and refine understanding. These conversations are not about outsourcing responsibility, but about sense-checking and benchmarking against other experienced professionals and how they approach similar challenges.

Informed decision-making is enhanced by personal experience and social interaction. Strong personal networks can enable directors to tap on cognitive diversity.

The social responsibility of directors

Boards today grapple with complex, multi-dimensional issues such as artificial intelligence, cyber security, geopolitical risk and sustainability. Since no single director can be an expert in everything, directors have a responsibility to stay informed, avoid blind spots and seek out fresh perspectives on emerging issues.

Staying connected with fellow directors across sectors, disciplines and experiences is one way to do that. Informal peer networks provide access to different frames of reference and insights that may not surface within the boardroom. This strengthens boards and leads to more robust and equitable outcomes.

Directors need to be deliberate about building open, respectful and inclusive peer networks as a matter of good governance practice. They should avoid forming “old boys’ networks” and exclusive clubs or groupings that exclude women and under-represented groups, whether or not unintentional.

What “networking without networking” really looks like

When people hear the word “networking”, they often imagine crowded rooms, business cards and social media posts.

The networks of effective directors are grounded in credibility rather than convenience. They are built slowly, over years, and rooted in relationships where conversations are thoughtful, confidential and principled.

This form of networking is not about collecting contacts or trading favours. It is about reputational capital – the confidence that when a director reaches out, the response is considered because trust already exists.

It is also reciprocal. Directors who are well-networked are generous with their time and perspective. They listen as much as they advise. Over time, this creates a network built on trust rather than transaction. Their peers respect one another’s judgement, discretion and values.

Trust and confidentiality

Trust is central to any meaningful network, and confidentiality is non-negotiable.

The strength of a director’s network depends on how confident others are that sensitive matters will be handled with discretion. While trusted peers can provide valuable perspective, confidentiality and prudence are essential. Without that assurance, such networks cannot function.

Trust is also reinforced by integrity and professionalism. Where a director recognises a potential conflict of interest, they must recuse themselves immediately. Failure to do so can quickly erode trust and exclude the director from future confidential exchanges.

For directors, “networking without networking” is about building habits and good practices, based on the following fundamentals.

First, invest in relationships before you need them. Trust cannot be built in a crisis.

Second, seek networks of substance, not status. Titles matter far less than integrity, discretion and clarity of thinking.

Third, practise reciprocity. Offer perspective, not just requests.

Finally, be classy. Treat informal conversations with the same ethical discipline as formal roles. Confidentiality, independence, integrity and respect matter in and outside the boardroom.

Independence, revisited

Directors do not govern in isolation or only on paper. They operate within a complex social ecosystem of peers, stakeholders and shared responsibility. True independence is not the absence of relationships or connections, but the presence of trusted networks.

The strongest directors understand this. They cultivate their networks not by being the loudest or most visible, but by being perceptive, independent-minded, helpful and trusted. In networking without networking, directors make better decisions.

The writer is a member of the Governing Council of the Singapore Institute of Directors.

Source: The Business Times © SPH Media Limited. Permission required for reproduction.

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