For those already serving and those who aspire to become part of the banking Boardroom as Non-Executive Directors (NEDs)

In my previous article, I outlined the areas of expertise and core topics of understanding that need to form part of the collective know-how of a banking Board if it is to steer and supervise the business toward sustainable profitability and growth. Banking has, quite simply, evolved dramatically in its complexity. Unlike some traditional client service–focused industries, technological development has shaken banking to its foundations. This is especially apparent when compared with sectors such as insurance or healthcare, the sectors where labor costs represent comparable proportions of total operating expenses as in banking and where securing recurring client trust remains a central determinant of business perception.

However, brainpower and expertise alone are not sufficient to successfully oversee and guide a bank; they are merely the foundation. How effectively that foundation is used depends on the mindset of the decision-makers, starting at the very top. In this article, I will therefore focus on how such a mindset can be shaped, viewed through the lens of a Non-Executive Director (NED) serving on a banking Supervisory Board or Board of Directors. Mindset is not pre-set; it develops over time, sometimes over long periods, as a result of behaviors, rituals, habits, and external influences.

Let us explore which of these may be particularly useful.

The Board Mindset Which Is Needed to Create a Truly Good Bank

A good friend of mine, mentioned in Part I of this article series, describes bank culture as the system through which decisions are made, risks are interpreted, and incentives are transmitted - ultimately shaping the speed of service, simplicity, and security that modern clients expect from their bank. Connecting this perspective with recently published research by the board search specialist firm Nurole[1] and drawing on my own real-life experience, I would like to share several insights from the daily practice of those responsible for bank performance, strategy shaping, and, ultimately, their institutions’ future. These include top executives, board members, and those who closely surround them.

Below observations align closely with my own beliefs. While I have not personally experienced every single one of them, around 90% resonate strongly with me, reinforcing my conviction that certain ways of thinking and specific techniques can meaningfully shape bank culture and mindset.

A. Great Boards run on questions, not answers

In Board sessions, one theme consistently stands out: the power of asking the right question. The most transformative questions are often deceptively simple - questions that stop the room, reset assumptions, and force clarity. I am referring to moments when a single question changes the direction of a discussion, reframes a complex issue, or unlocks a deeper level of strategic thinking.

Sometimes, asking such questions requires deep expertise; at other times, it requires precisely the opposite. A curated selection of these questions might look like this:

• “Why are we doing this?”: A blunt, clarifying question that is impossible to dodge and brings the discussion back to purpose.
• “How soon will we know if this isn’t going to work?”: Boards often ask how to succeed. Few ask how to recognize failure early.
• “What happens if we don’t do this?”: A reframing of the often-overlooked risk of inaction.
• “Show me the clause in the regulation where it says that.” A sharp way to challenge complacency and over-interpretation of risk.
• “If we hire this person, what will we wish we’d known sooner?” A question that should precede every major appointment.
• “What do we want to get out of this meeting?” A discipline-setting question that sharpens collective intent.

Great Board members are not answer-givers; they are clarity-makers. The strongest questions strip away complexity and reveal what truly matters. Increasingly, humility is becoming a core governance skill. Modern Boards must look beyond content and challenge assumptions by probing the thinking behind the thinking. This means moving beyond purely performance-driven contributions toward curiosity-led challenge.

B. Great Boards run on intentional, repeatable rituals

Behind the best-functioning Boards lies a shared set of rituals that elevate discussion quality, strengthen relationships, and sharpen decision-making.

• End-of-meeting evaluation;
• Questions such as “How did we do today?” and “What could we do better next time?” can be surprisingly transformational. Over time, this practice turns the Board into a learning organism that compounds insight and effectiveness.
• Private NED sessions before and after the meeting, without executives present;
• These are not about forming political groups, but about alignment, reflection, and clarity of challenge. They provide space to reflect freely, identify cultural or behavioral signals, agree on follow-up actions, and surface emerging concerns.
• Informal dinners and relationship-building time;
• Trust is built outside the boardroom, not inside it. Informal dinners foster deeper understanding, more open conversation, greater empathy, and more honest challenge when it matters most. My own experience strongly confirms this.
• Walking the corridors;
• Practiced thoughtfully, this pays dividends. In two-tier governance systems, common in continental Europe, this must be done transparently and with full executive support and agreement. That permission is earned over time, through trust and the complete absence of hidden agendas, hierarchy hopping or ego building. The purpose is simple: reconnecting non-executives with frontline work, customer experience, operational reality, and cultural truth. The best insights rarely come from paper; they come from proximity.
• Pre-meeting briefings to ensure members arrive prepared;
• Pre-briefings ensure Board members arrive prepared, understand context, clarify technical points, and focus on things which truly matter. The overall quality of contribution rises immediately.
• Starting each important topic by asking yourself: “What’s the end outcome we want from this?”
• This forces alignment on purpose, clarifies expectations, and keeps focus on outcomes rather than process. Research shows that Boards using such discipline report more intentional and less performative meetings.

None of these rituals are accidental, they should be deliberate. Each reflects an understanding that governance effectiveness stems from behavior, not paperwork. Whether it’s an evaluation, a walk through the business or a conversation over dinner, the best rituals make room for insight that paper alone cannot produce. The strongest Boards operate as learning teams, they learn even faster than the organization itself. And most of all, mental connection to bank’s mission and reality becomes a competitive advantage.

C. Great Board members remember the lessons that changed them

Crisis is the best teacher. Anyone who has overseen restructurings, navigated organizational crises, made painful decisions, managed succession processes, or sat in roles where the stakes were highest will recognize this. I can personally confirm its truth. These lessons always converge around the same pillars: humility, judgment, self-awareness, timing, and the discipline to learn continuously. Just glance through these short thoughts[2], and you’ll know what I mean.

• “Nobody is nobody.” Respect is non-negotiable at Board level; truth can come from anywhere.
• “The most difficult thing to say is: ‘I don’t know.’” Humility consistently proves to be a core competence.
• “Impact starts with I.” Boards only function well when individuals understand their own influence on the group.
• “Almost everybody gets timing wrong.” A recurring truth across industries: Change takes longer than you think; success arrives later than you expect.
• “The CEO’s job changes completely every time the company scales.” Boards that fail to grasp this perception destabilize both the CEO and the business. Scaling is a sequence of new jobs, the role of a top guy changes with size.
• “Never be afraid to knock on the most important doors in life. They often open.” Courage and initiative shape outcomes as much as capability.
• “Strategy is not a process. It’s a state of mind.” The strongest Boards treat strategy as something alive, adaptive and continually evolving.
• “Show, don’t tell.” Evidence matters more than assertion.
• “What you know is who you know.” Networks play a real role in Board effectiveness, and in the transfer of best-practice.
• “Turning the mirror to yourself - look at your own behavior first.” Self-awareness improves listening, challenge, and decision-making.

Across these reflections, self-awareness, humility, curiosity, and timing dominate. Trust and interpersonal dynamics shape outcomes far more than formal structures. Learning agility has become a core criterion for Board effectiveness.

D. Great Boards recognize their mistakes

It doesn’t matter whether we are talking about failed hires, acquisitions they should have questioned more closely, instincts which were ignored, risks which were underestimated, assumptions trusted too readily, or conversations which didn’t happen soon enough. These moments rarely damage careers. In fact, the opposite is often true. They should sharpen judgment, clarify values and strengthen the discipline members now bring to the boardroom.

The biggest failures come from hesitation, not action and learning from failure is a character trait of the modern chair or NED. Mistakes shouldn’t break a good Board member. They should sharpen her/him.

Finally- and critically - diversity only delivers value when it is actively used. Inclusiveness, not diversity alone, should be the destination. Representation without participation is meaningless. Boards must actively draw out quieter voices, challenge assumptions, and ensure all perspectives shape decisions. The hardest problems in the boardroom are people problems, and most Board mistakes are people mistakes.

Final Word

To be a great Board member is to practice humility, self-awareness, curiosity, patience, listening, influence without ego, and the ability to hold space for diverse thinking. Technical expertise remains essential, but so does the ability to navigate ambiguity, manage dynamics, and stay grounded amid complexity.

Be involved, but not intrusive; be challenging, but not combative; be supportive, not passive.

And above all, keep learning - from best-in-class peers, from reading, from listening, and from real-world practice across diverse markets and situations. That is where experience truly comes from.

[1] Nurole.com: The 2025 Enter the Boardroom Report | Built from 4 million minutes of listening – quotes/questions used from their practice-based research

[2] Nurole report

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