Speaking at the Conference of Major Superannuation Funds on the Gold Coast yesterday, Mr Gonski (who currently sits on around 40 boards himself) likened the role of a chairman to that of the conductor of an orchestra.
"The job of a chairman is to make sure that everybody is heard – but at the same time ensuring that the orchestra plays in tune,” he said.
A chairman who only listens to themselves and is too “strong” will not necessarily produce the ideal results, said Mr Gonski.
“The chairman's role is more of a coordination and nurturing role rather than one where he or she should be overbearing or see themselves as 'the boss',” he said.
But that is not to say that a chairman should be weak, said Mr Gonski.
“A chairman does need to direct the orchestra with a firm hand,” he said.
Discussions can (and should) take place, but ought not to “go around in circles”.
“Resolutions must be made one way or the other. A board that doesn't come to conclusions is a board that will ultimately be sidestepped by management,” he said.
Boards must also be well diversified (particularly when it comes to gender) in order that the views of the prevailing board be “prodded”, Mr Gonski said.
“Diversity of gender promotes different ways of thinking. It follows that decisions are tested, ideas mulled over and different points of view brought together before a decision is made,” he said.
Geographic diversity is also important in the make-up of a board, Mr Gonski said, adding that most of the boards he sits on are largely composed of people from Sydney or Melbourne.
