“It is important to be inquisitive. Trust but verify.” 
Mr. John Ngumi chairs the boards of Kenya Pipeline, CarePay and SME Alternative Circle. He is also a non–executive director on the board of Athi River Mining Ltd. In a whistle stop interview, John reflects on the different challenges he has faced being the chairperson of a parastatal and of a private company. 

What was the first board you sat on?  

The first board I sat on was whoa… long ago in 1984. I represented my then employer, Grindlays Bank, on a board.   

What was your experience?  

Well I had just come back to Kenya and I did not know about the operations of a parastatal. My role was to listen and report back. I was not an active board member.  

One of the questions I was excited to ask John related to the different experiences he has had being a chairperson of a private company and a parastatal. He explained there are distinguishing characteristics between a parastatal and a private company board. Due to the power dynamics derived from diverse appointing powers, differences may arise. “The frustration for a chair is that the law and the public regard the chair at the apex of the organization when really that power can be very limited.” On the other hand, in a typical private sector company, there is strong interaction and operations run clearer. You would not procure a service without the input of the board. You will not hire many people down the chain without the board having a say.  

How has your experience in the financial sector shaped you as a chair?  

Being an investment banker has been excellent training. You don’t bring emotion to the business and your trained to draw out people to make them ask you for advice. I was dealing with a variety of customers in varied industries, having to interact with people at the top level. That high level of exposure, plus the variety of people moving from different industries, was an invaluable experience.  Managing egos of bankers is good training for managing different perspectives on a board.   

You chair the board of Alternative Circle which is an SME. Do you think SMEs should create boards early on?  

Yes. For a simple reason, SMEs underestimate at their peril (sic). Being a CEO is a very lonely job. Whether you a CEO whether of Safaricom or an SME, you need a sounding board, a shoulder to cry on and ask for advice. If not a board, all CEOs should have a mentor.  

What are the key lessons you have learnt as chair?  

It is important to be inquisitive. Trust but verify. Have a wide variety of sources of information. Maintain distance from management to maintain perspective and not get involved in battles that take place. It is for the chair to make chemistry work. You need to be very quick in learning people, their characteristics, strengths, weaknesses, what drives them and so on.  

What advice would you give to people striving to chair a board?  

Chairpersons don’t fall out of the sky. You grow into the role. You cease being a specialist and start being a team manager. A CEO is a captain and the chairman is a team manager. So, you can advise but once the team is on the field, you are on the sidelines and you hope that the team can work.  

 We interviewed John Ngumi a week during the FIFA 2018 World Cup games. As I reflected on his thoughts of the Chairman being the team manager, I couldn’t help but think about the football coaches. Before and after every football goal, the camera zoomed in to the faces of the team coaches to record their emotional reaction of joy or despair. As one watched them anxiously pacing, clapping and shouting, it was clear that they were deeply invested in their team. Through our interactions with various boards, we have observed that a board‘s success is contingent on the chairperson’s investment in the board as a team. A great board is about a great chairperson.  

The Inquisitor