Lithuania has made significant progress in building boards within the public sector, yet new mistakes have also emerged. Gerimantas Bakanas, CEO of Gijos, notes that boards are increasingly joined by people with energy and ambition but not enough experience. “A good board member should help a company grow, not merely observe processes,” says BMI Executive Institute EMBA alumnus G. Bakanas.
Over the past decade, Bakanas has worked on several of Lithuania’s strategic projects – from creating the KN Energies LNG terminal and restructuring Lithuanian Railways to leading an industrial company in Latvia, and most recently transforming the capital’s heating and energy holding company, now operating under the name Gijos.
In addition to his extensive executive background, Bakanas has substantial experience in corporate boards – both as a member and as a chair. According to him, while Lithuania has made major strides in this area, too often board seats are filled by people lacking the necessary competencies. In this conversation, he discusses what those competencies are, how real transformation begins, and what courage means in the public sector.
– What mistakes do you see in how board members are appointed in Lithuania’s public sector?
Compared to other Central and Eastern European countries, Lithuania has made impressive progress – we’re a model of how selection processes should work. However, sometimes we overdo it, as we’ve begun to “mass-produce” board members who lack the right experience. In my view, if someone has never led a large company or held a senior executive position, it’s difficult for them to be effective on a board. A board member must have not only knowledge but also lived experience.
I respect young, educated, ambitious people – but when boards include candidates aged 25–30 who haven’t yet faced real crises or strategic decisions, concerns arise. Then boards risk becoming control mechanisms rather than engines of strategic change.
A good board member helps a company grow, not just monitor it. Without experience, responsibility becomes a burden – and people tend to hide behind documents and formalities.
The private sector is much more mature in this regard – experienced members are usually chosen. Of course, there are exceptions, like startups, where youthful energy is a strength. But those are exceptions, not the rule. A board member must understand the sector and its regulatory environment. They shouldn’t just control – they must create value.
– What competencies does a good board member need?
A good board member must combine specific competencies with strong personal qualities rooted in values and a continuous drive to learn. Key competencies include:
- Strategic thinking – the ability to see beyond the present and anticipate where the market is heading.
- Innovation and change leadership – helping the organization adapt and evolve, as modern boards must be part of change, not mere observers.
- Corporate governance and risk management – ensuring sustainable growth through sound decision-making.
Another essential but still underdeveloped skill among the new generation of independent board members in Lithuania is deep sectoral understanding, including the regulatory landscape and ESG principles.
– How are board members usually identified and selected?
Typically, executive search firms are engaged – and they do their job professionally. Yet in the public sector, shareholder involvement is equally important, as the process can otherwise become overly formal.
A shareholder shouldn’t delegate this task to a lower-level specialist or judge candidates by superficial traits like an attractive CV or conference activity. The tone for board formation must come from the shareholder, who clearly understands the company’s strategic direction and objectives.
– So how do you form that “golden board”? What kind of members create real value?
A positive trend in Lithuania – seen in companies like KN Energies, Ignitis, and LTG – is the inclusion of foreign experts on boards. Such members bring international experience, broader perspectives, and genuine enrichment to corporate governance.
Lithuanians are ambitious, energetic, and fast learners, but our market is small, and the scope of experience is still limited. That’s why external expertise is so valuable.
Another best practice is when a board member acts as the company’s ambassador – not only overseeing processes but also representing the organization, maintaining relationships with authorities and the public, monitoring political and financial trends, and sharing insights with management. That’s real added value.
A good example in the public sector is when out of five board members, four are independent and one represents the shareholder. The chair is independent, and several members have deep sectoral expertise. Such a team doesn’t just control – it genuinely helps the company grow.
– Where and how should board members develop their competencies? How do you do it yourself?
The universal answer – lifelong learning. This includes practical and theoretical knowledge, as well as environments that allow you to learn from other professionals.
Institutions like BMI Executive Institute provide such opportunities, standing out through their international network and diverse participant profiles. There, you learn not only from professors but also from peers – executives with different experiences, perspectives, and sector knowledge. Such an environment helps you grow.
But learning can’t be a one-time event. If you sit on several boards, it’s not enough to skim documents before meetings – you must continuously deepen your knowledge, follow industry trends, and consciously develop your competencies. It’s an ongoing process, not a formality.
– In your career, you’ve said there’s no organization that can’t be changed. How did you become a master of transformation?
One of my biggest career projects was the KN Energies LNG terminal. I worked on the team that built this strategic project for Lithuania – its true value became clear during the energy crisis and the war in Ukraine. It was a formative experience that strengthened me as a person and a leader.
Next came the Lithuanian Railways transformation – one of the toughest professional periods of my life. I had to make many difficult decisions, restructure teams, and rebuild systems. For a time, I felt more like a destroyer than a creator. But I learned that every transformation is about people.
Later, while leading a factory in Latvia and now Gijos, I finally experienced what it means to create anew.
– What lessons have you learned as a leader through these transformations?
Every transformation reminds me of the same truth – change happens not because of plans or strategies, but because of people who believe in it. A leader is just one part of the puzzle.
According to management theory, you can either change people or grow the ones you have. The Scandinavians have time for the latter – they transform slowly and steadily. In Lithuania, everything is “measured by terms of office,” so we often need to make tougher, faster decisions. It’s not easy – you become unpopular. But when you later see the company revitalized and energized, you realize it was worth it.
Another crucial lesson – choosing the right people. Don’t rush. Spend more time understanding their values and personality. For instance, when selecting a C-level executive, one of my steps is having the candidate meet the current leadership team. I want to see if there’s chemistry and trust, if the person will naturally integrate and help drive strategic change together.
And one more thing – values. Without them, nothing works. Many organizations declare values, but it’s not about slogans. When values are lived, not written, real transformation becomes much easier.
– What are the core values at Gijos?
We have two main values – “the courage to act” and “we care about the world.” The latter is broad – it means we care about our employees, our customers, our city, and Lithuania itself.“The courage to act” means we stay in motion, move forward, and redefine what it means to be a public-sector joint-stock company. It’s about courage – not fearing mistakes, or when they happen, not giving up but continuing to push boundaries. The “fail fast” culture is only beginning to enter large corporations, but courage for uncomfortable decisions and innovation is essential.