Intelligence, as practised by the intelligence and security community defending government and the nation, is a discipline that directors and boardrooms are desperately in need of—as several examples from 2024 already show.

These range from the ongoing Post Office scandal, through to criticism of UK water companies for environmentally harmful sewage discharges into rivers, and Microsoft being at the centre of two hacking campaigns, allegedly carried out by Chinese and Russian spies.

All of these and more show a need for boardroom intelligence that is both efficient and effective in delivering insightful, trustworthy and accurate insights drawn from scrupulously-gathered and analysed evidence.

So why does it seem that clearly clever people continue to make the same significant leadership errors again and again?

The disciplines of intelligence

Any entity facing the challenges of competitiveness and high-quality value delivery will benefit from data that evidently clarifies the way forward.

By providing well thought through, high quality information, board directors who are responsible for governance when balancing myriad stakeholder interests need to draw on three key disciplines to nurture an intelligence mindset. These are:

1. Evidence-based, clear reasoning

Has the data and information gathered accurately portrayed the perspectives and reasoning of all relevant stakeholders? Are they genuine enough to qualify as facts? Is the evidence complete?

It’s no easy job determining what information is relevant without recognising associated blind spots. Trusting unverified data is damaging and directors need a sensitive intelligence mindset to ask others to concentrate purely on facts and evidence. This is not as easy as it might sound.

To migrate from data to facts and evidence requires critical thinking and careful analysis. Versatility with abstraction and deduction in circumstances that are often distorted by contrasting advocacies produces a clear line of sight to pursue.

A critical factor is the possession of an independent mind that resists becoming emotionally embroiled in unproductive interactions. When facing deep concerns, differing emotions naturally surface and boardroom debate can slip into defensiveness, countered by over-assertion.

For a board director properly exercising stewardship, these emotions can lead to perceptions being piled on top of cognitive biases unless carefully managed.

The discipline required needs to recognise and focus on the underlying forces that stimulate misalignments. To counter any negativities, evidence should be presented in a respectful manner, enabling those participating to rise above potentially damaging sentiments.

Disciplining oneself to determine the line of reasoning which explains or clarifies the way forward does not mean being cold or unengaging. Quite the opposite, in fact: a board director needs to be continually engaging, but equally impress their colleagues with the deep logic of “This is why we are here, and this is how we will move forward.”

An evidence-based, clear line of reasoning with critical thinking at its core helps the board understand the past, present and all its nuances and respective truths. A more intelligence-based mindset does not compromise on narrowing down to just one truth. Its power lies in a capacity to perceive other people’s truths and how they have emerged.

Whether we like it or not, our present reality encompasses not just the objective facts, but all relevant stakeholders’ individual perceptions.

2. Scenario planning and embracing uncertainty

Mapping the past and present, and understanding the fine and sometimes irrational drivers that direct various stakeholders’ actions is another element to consider.

For most intelligence professionals, everything is about the future. Whatever decisions are agreed upon by the board today will become tomorrow’s business environment reality.

The intelligence mindset focuses on projecting tomorrow’s scenarios and accepting that there will always be more than one outcome, ranging from ‘black swans’ (rare events) through to ‘business as usual’.

Projecting these scenarios is a skill that becomes especially useful at the board level when critical and lateral thinking are blended.

Clearly determined scenarios offer alternative strategies and plans, while monitoring evolutions allows for an agility to recognise the most suitable option.

The intelligence mindset recognises that uncertainty—as the only certainty—is not to be feared. Uncertainty is neutral but not inherently negative. It is a matter of perception.

Embrace and respect uncertainty by being alert in order to scrutinise the environment. Armed with an intelligence mindset, high-performing boards thrive on uncertainty, by adapting faster to the changing environments.

3. Controlling your ego and embracing learning

One of the biggest drawbacks for an intelligence professional is if they allow their ego to surface and take over. Ego corrupts critical thinking and disrupts engagement with others.

Intelligence professionals are trained to ‘keep their ego in check’, meaning the focus remains firmly on understanding others’ perspectives by walking in their shoes to allow for constructive criticism.

Contrasting interests often manifest as power wars. This is where egos collide and emotions ravage reasoning, with truth being the first victim.

Our ongoing global research has established that, on average, 67% of board directors evade speaking the truth because of a distinct discomfort experienced when going against the predominant view.

The main fear at play is ‘what if others think less of me for speaking my mind?’ When a board member ceases to learn, they incur professional damage, but this may not result in a forced resignation or dismissal. Such destructive sentiments and interactions can linger for quite some time.

The Intelligence mindset emphasises the opposite of the ego. None of us is perfect, but most possess the ability to continuously learn, improve and adapt to circumstances.

This simple message can enable boards to become rich in mentorship, experience and wisdom—all packaged in humility. The potential outcome is priceless for a board.

Recognising value

So how can greater value be realised from the assets under the board’s care than has been the case to date?

Generating value through the productive exercise of oversight is the very reason the board and its directors exist.

The intelligence mindset nurtures the agility that is necessary for value realisation. Discussion can stretch further than envisaged, and a commitment to decisions made becomes far deeper than expected.

The intelligence mindset further focuses on the generation of high-quality, future-oriented analysis so that the interaction between board members is meaningful and emerging decisions are pertinent.

Unwelcome concerns can also be openly addressed, particularly regarding issues of reputation—a sensitive and personal board topic—most notably if questions raised concern the CEO or chair.

In facing reputational challenges, denial from the board and C-suite is commonplace, and rarely helpful.

Effectively dealing with reputation requires the three disciplines to work in tandem and become a daily habit: a challenge that is stretching, to say the least. However, given that reputations built over decades can be lost in a day, this is a small price to ask.

Are you worth a premium?

Many board directors are likely to believe they already display an intelligence mindset. In one sense, this is true, as board directors are undoubtedly intelligent individuals.

Despite this, some individuals consistently display an intelligence mindset that illustrates lapses in one or more of the three disciplines at any given point in time.

Unlike the government intelligence community, which is carefully trained to adopt an intelligence mindset at all times, board directors are largely left to their own devices.

It’s up to them to learn to perfect their own intelligence mindset, which is little surprise, given the array of capabilities usually displayed by the professionals who normally gather around a board table.

A clear line of reasoning exists, but this only works properly if there is systematic process employed that focuses on evidence and accepting different, or even opposing, truths at the same time. However, reality shows this is not always the case.

Seeing the future in scenarios and embracing uncertainty as a resource to out-compete others goes off the beaten track of many boards. The only real way to benefit from an intelligence mindset is to put the big egos to one side and engage openly with difficult subjects and viewpoints.

It is up to the chair to be both coach and mentor in the adoption of the board’s intelligence mindset. With many chairs and board directors feeling that they already have such a mindset and therefore there is little need for it, the old adage springs to mind: ‘The first step to solving a problem is recognising that one exists.’

Andrew Kakabadse is professor of governance and leadership at Henley Business School and Ionut (Johnnie) Corduneanu is adviser to the CEO of Therme, a global well-being group, and a former military intelligence officer.