A seasoned organisational leadership advisor, facilitator, and governance strategist, Roger Hitchcock equips boards and executive teams to move beyond compliance – to implement agile, stakeholder-inclusive practices that drive innovation, sustainable growth, and meaningful transformation in dynamic business environments.
In today’s organisational leadership discussions, the term ‘flourishing’ is no longer confined to personal or ecological well-being – it has become central to a vision of business as a force for building thriving, resilient communities. Simply put, when business moves beyond pursuing profit through extractive practices, it becomes an indispensable means of fostering collective prosperity.
Flourishing can be defined as ‘growing or developing robustly, especially as a result of a particularly congenial environment.’ This definition holds an important reminder that the environment within and around an organisation does not merely provide a backdrop to operations – it actively shapes outcomes. This encompasses both internal resources, such as assets and human capital, as well as external forces like market dynamics, customer expectations, and competitive pressures.
For any leader, recognising and navigating these multifaceted influences is key. While external factors may fall beyond our sphere of influence, it is possible to design and refine the internal environment. By doing so, we not only create and protect value, but also ensure that the business remains viable and dynamic over time.
No matter the goal, we all begin with the circumstances at hand. And many organisations are currently grappling with sources of friction – that overtly or subtly divert attention, sap energy and thwart progress. This section describes four primary sources of leadership friction that, when unaddressed, can become hidden obstacles to the flourishing of a business.
Friction 1: Neglecting the legal duties of leadership
In every business, leaders must operate from the dual responsibilities of strategic vision coupled with clear legal obligations. To exist as a separate legal entity, every registered company requires a director. This is not merely a position. The role of a director is grounded in a fiduciary duty – the director must act in the best interests of the company, balancing authority with accountability.
Too often, the legal responsibilities associated with this role are overshadowed by strategic pursuits. However, overlooking the legal dimension can lead to tangled conflicts of interest and a blurred sense of purpose. As directors, we bear the responsibility of crafting value and sustainable viability. To do so, we must consciously dedicate time and intellectual energy to the distinct demands of our legal role, ensuring that our commitment to organisational welfare is never compromised by other competing agendas.
Friction 2: Insufficient focus on working ‘on’ the business
An effective leader recognises that growth stems not only from constantly managing the day-to-day but also from dedicating time to work ‘on’ the business. This is the art of creating an environment that is self-sustaining and geared for future opportunities – a space where the business can continually evolve and flourish.
Numerous ‘firsts’ mark the lifecycle of any organisation – whether it be launching a product, expanding the workforce beyond 50 individuals, entering new markets, or restructuring ownership. These milestones demand that leaders deliberately carve out moments for strategic reflection and the work of organisational design and re-design. When the pressures of daily operations eclipse this focus, there is a risk that the business can become stuck in the present, viewing structure as an end rather than a means to enable flourishing in the future.
Friction 3: Unclear roles and responsibilities
In every business, the smooth interplay of various functions is crucial to achieving clarity and effectiveness. However, confusion often arises when individuals wear multiple hats – as shareholders, directors, and operators. While these roles are inherently distinct, they are frequently conflated, leading to friction and misaligned priorities.
The operational role is centred on delivering the fundamental functions of the business and is governed by employment legislation. In contrast, the shareholding role is inherently self-interested, driven by investment returns. The directorship role, however, is bound by fiduciary duty, dedicated to the long-term health of the business.
Recognising and maintaining these distinctions is vital. When leaders understand that these roles relate foremost to the business itself rather than to one another, the result is clearer, more consistent decision-making – a cornerstone of good governance.
Friction 4: Inadequate governance
At the heart of every successful business lies sound decision-making. Governance frameworks (through their policies, processes, and procedures) orchestrate which decisions are made, by whom, and how they are implemented. When these frameworks are poorly designed, the resulting missteps can wreak havoc across the organisation.
Effective decision-making involves several interlocking elements – understanding the nature of the decision and its purpose, identifying the correct level of authority and competence, and ensuring the decision is well-documented and transparently executed. Leaders must consistently evaluate their governance systems, ensuring that these mechanisms evolve in tandem with the business’s stage, maturity, and operational demands. When friction is introduced through governance failures, the entire path to flourishing is compromised.
There are five fundamental questions that every business must answer with clarity:
When these questions remain unasked or unanswered, friction becomes the by-product of oversight. Innovation and efficiency suffer, leading to stunted growth and unsustainable practices. The symptoms of friction, therefore, are not merely operational hiccups but signifiers of deeper misalignments – a failure to anchor every decision in the core purpose of the business.
In the quest for business flourishing, answering these fundamental questions is not optional – they are essential. A business that does the right thing, for the right reasons, with the right people, in the right way, and to the right end, is one that transcends mere survival and embarks on a journey of true collective prosperity.
The next article will explore a comprehensive framework that empowers leaders and their teams to address these questions directly – thereby overcoming the hidden obstacles that frustrate growth. In the meantime, step back and reflect on your business’s environment. Diagnose where friction is impeding progress in your business and allow this insight to guide your journey forward.
