Cross-industry boards are better equipped for today’s governance challenges
6 min read
Corporate governance is becoming more demanding each year amid increasingly complex regulatory, trade and operating conditions. Boards are expected to make clearer and faster decisions while maintaining credibility and stakeholder trust, even as expectations continue to rise, capital becomes more cautious and reputational risk is less forgiving than ever before.
In uncertain economic environments, one kind of board consistently stands out from the rest: those guided by directors with meaningful cross-industry experience. Boards that draw on a wider base of sectoral insight are better positioned to navigate modern-day challenges than more one-dimensional boards, as they are better equipped to interrogate presumptions and anticipate risk under pressure than those with more uniform backgrounds.
Cross-pollination makes for more fertile ground
In my own time as a board representative, I’ve served in the infrastructure development, viticulture and sports industries as the chair of both the Gap Infrastructure Corporation and Blaauwklippen Wine Estate, and a board member of the Griquas Rugby Union – three sectors with notably different operating realities and governance demands.
During this time, one lesson has consistently become apparent: While industries differ, the principles of effective governance do not. What changes is simply the context in which these principles are applied. Under real-world conditions, experience from one field often provides a fresh perspective in another.
For instance, infrastructure boards oversee long-cycle investments, large capex decisions and delivery risk across multi-year horizons. Financial discipline, long-term thinking and a strong understanding of project sequencing are essential. But these same financial governance skills translate directly to winemaking, where vineyard development, cellar expansion and brand building require patient capital and disciplined reinvestment.
Exposure to different sectors strengthens board members’ ability to recognise familiar risks in unfamiliar settings. Directors who have navigated capital intensity in one industry are often better prepared to stress-test forecasts and ask tougher questions in another.
Governance is ultimately about people and accountability
Critically, however, while financial oversight is crucial, strong governance is never purely technical. The human factor is also incredibly important, no matter the industry. Across sectors, boards are responsible for decisions that impact employees, customers, communities and long-term institutional trust.
In sectors such as wine and sport, the link between governance decisions and human experience is immediate and visible. But that same sensitivity to human experiences is increasingly important in infrastructure.
Directors must carry an awareness of how assets are actually used by people, not just how they’re engineered and financed. They must remember that assets are not simply abstract balance sheet items but facilities and systems that affect how people live, work and move. Those board members who carry this heightened awareness through cross-sector exposure tend to govern with a broader understanding of consequence rather than simply compliance.
Applying King V to the boardroom
To achieve the greatest level of success, boards also need a framework that allows this cross-pollination between industries to translate into real value for businesses.
Applied from January this year, the King V Code on Corporate Governance for South Africa provides that foundation. It supports co-operative governance and gives directors clear guidance on how oversight and accountability should follow them across sectors. In practice, this means directors are expected to carry the same governance discipline and ethical standards into every boardroom they enter, regardless of industry.
Principles covering leadership, ethics and stakeholder responsibility reinforce consistency for directors across every board on which they serve. Directors who lead with accountability in one sector should apply the same discipline, ethical conduct, responsible decision-making and social awareness in another.
Board composition and delegation principles are equally important. King V emphasises the need for boards to balance skills and experience, while maintaining a clear distinction between board monitoring and management execution. Directors with cross-industry exposure strengthen this work by questioning assumptions, identifying risks earlier and applying oversight practices that have proven effective in other sectors.
Principles addressing strategy, reporting and assurance are designed to ensure long-term performance that can withstand market and labour volatility. King V requires boards to link decision-making to sustainable value creation, supported by reliable reporting. Directors who have governed different business models apply a broader frame of reference when evaluating investment decisions, operational performance and control environments, helping maintain governance discipline across sectors.
As South Africa’s corporate governance landscape continues to evolve, boards will face growing regulatory scrutiny and expanding stakeholder expectations. Those that embrace cross-industry experience and maintain disciplined oversight, ethical leadership and a stakeholder-focused approach – especially under a structure like King V – will remain unshaken and credible in this environment.
Olebogeng Manhe
Chairperson
