The role of boards in today’s business environment is becoming increasingly important — it determines not only a company’s strategic direction, but also the quality of its governance, the transparency of its decisions, and the culture of accountability. An effective board can bring together diverse perspectives, ensure a balance between strategy and operational management, and create an environment where well-considered and sustainable decisions are made.
We discussed these topics in an interview with Andris Vanags, a board member of AS “SAKRET HOLDINGS”, VAS “Latvijas autoceļu uzturētājs”, and the Riga Technical University Council, who shared his insights on the differences between working in the private and public sectors, the role of the board in business development, and the evolution of management culture in Latvia.
How would you describe yourself and AS “SAKRET HOLDINGS” in three words?
Together with my team, we have built and manage a company specializing in the production of dry construction mixes. Our manufacturing facilities are located in several Baltic countries, and we develop our products from the initial idea to a fully finished solution. For more than twenty years, the company’s management and ownership structure has remained unchanged.
We operate throughout the entire development cycle — from concept creation to production — in close cooperation with major factories. We see ourselves as a creative, development-oriented, and goal-driven team. We are constantly looking for ways to improve processes, refine products, and generate new ideas. Challenges and opportunities for growth motivate us, and we embrace new possibilities with enthusiasm.
How would you define what makes a good leader today? Has this definition changed over the past ten years?
The essence of leadership has not changed, but the environment in which it takes place has transformed significantly. In the past, the work setting was largely in person — meetings, discussions, and decision-making all happened face to face. Today, almost everything takes place digitally: decision-making, document circulation, approvals — everything is done electronically.
A modern leader is almost constantly reachable. The phone vibrates, emails come in, and immediate responses are often expected — whether on the move or at home. This requires a high level of focus and discipline. The digital environment has dramatically reshaped a leader’s daily life: the flow of information is immense, and everything moves faster. Previously, there was time to pause and discuss matters with colleagues in person; now, decisions often need to be made instantly — online, sometimes even while driving or between meetings.
A leader must be able to quickly switch from one topic to another, from one issue to the next, while maintaining composure and clarity. At the same time, digitalization brings clear advantages — faster communication, more efficient information exchange, and the ability to make collective decisions even when team members are in different countries. This has greatly improved team efficiency.
However, challenges remain. Face-to-face conversations are often replaced by brief messages or emails, so a leader must communicate clearly and precisely to avoid misunderstandings. The boundaries between work and personal life have become blurred — a leader can be reached almost anytime. You may be at home yet receive a document that needs your approval or an email requiring an immediate decision.
In the past, it was easier to disconnect; today, it’s more difficult. That’s why a leader must consciously learn to pause — to turn off the phone, close the laptop, and dedicate time to oneself or family. Otherwise, the risk of burnout is real. This pace of life teaches discipline — how to plan time, assess priorities, and recognize what can be postponed. A good leader must be able to work intensively, but also to recover.
What motivated you to move toward a leadership role? When did you realize you wanted to take on that responsibility?
The beginning of my career is closely linked to my mentor, who provided significant support and inspiration. I started working at Brocēni, a cement factory, where I had the opportunity to study and deepen my knowledge of chemistry. After completing my studies, I continued developing my own projects and business together with colleagues — at the beginning as a student initiative, which over time evolved into real investment projects. Gradually, this grew into a full-scale business activity.
Working as an engineer at the cement plant, I gained in-depth knowledge of concrete production. During that time, I also developed sales and communication skills — what we now call soft skills, but back then were simply considered personal qualities that later proved invaluable in leadership.
I began my professional journey as a sales manager. At that time, sales were much simpler — the main goal was simply to sell, without complex strategies. Later, around 1998–2000, as competitors from Lithuania, Estonia, and Russia entered the market, I had to delve deeper into the principles of sales — understanding customer needs, offering added value, and building long-term relationships. Step by step, we developed our customer service approach and established a dedicated department, which I was entrusted to lead. Later, I became the Customer Service Director — an important milestone in my journey from engineer and sales specialist to manager.
This path developed gradually, combining technical expertise, engineering experience, and sales skills. It was a natural progression — not a sudden leap, but steady growth, step by step.
How would you describe the main differences between board work in the private and public sectors?
In the private sector, everything happens much more dynamically. Board compositions are usually small — often consisting of a chairperson and a few members. I have been in a situation where I served as the deputy chair of the board and was also the company’s largest shareholder. In such an environment, decisions are made quickly because everyone is closely connected to the business — you are involved, you understand the current situation, and you feel the movement of the market. In the private sector, the management team is compact, and the board works in close cooperation with both the owners and the executive management. The decision-making pace is very high — sometimes decisions are made within a few days or even hours.
In contrast, the public sector operates differently. There are various regulatory restrictions and rules that must be followed. Work is carried out according to statutes, procedures, and documentation. It is necessary to take into account regulations, public interest, and multiple lines of accountability, which naturally create a different rhythm and approach to work.
I serve as the Chair of the Council at Riga Technical University, which was established from the ground up. It was fascinating to experience how a council’s work develops from the very beginning — we had to draft regulations, set the work procedures, and think about effective decision-making mechanisms. It was a truly valuable experience.
The RTU Council consists of eleven members with very diverse backgrounds and personalities. This requires adaptability and the ability to collaborate with people from the academic environment.
What qualities or skills are most essential for board members to work successfully in each sector?
One of the most important foundations of board work is integrity and the ability to respect both written and unwritten rules. This means showing respect for statutes, procedures, and principles of conduct that ensure structured and effective work.
Another crucial aspect is establishing the right working rhythm within the board. A board should not become a place where meetings drag on without a clear purpose. There must be a well-defined structure — a thoughtfully prepared agenda, a disciplined decision-making process, and efficient use of time. It is important to ensure that all board members are actively engaged, while also maintaining clear boundaries — discussions should move toward concrete decisions rather than endless exchanges of opinions.
And, of course, communication. It is one of the most vital skills in board work. It’s not only about making decisions, but also about the ability to communicate clearly, respectfully, and thoughtfully — to discuss, to present arguments, and to reach consensus.
What are the main challenges in working within the private sector and in state-owned enterprises?
In the private sector, it is crucial to understand that a board should not become a “smarter” institution than the executive management or the CEO. The board’s role is not to micromanage — its purpose is strategic. A board member must be able to clearly distinguish between operational management and strategic oversight. Day-to-day decisions are made by the executives, while the board provides support, supervision, and long-term direction for the company’s development.
One of the biggest challenges in the private sector is trust — trusting the management team that makes daily decisions. At the same time, the board must be able to critically assess the reasoning behind those decisions. It’s a delicate balance between control and trust.
In the public sector, the main challenge often lies in organizing the work of the board. Frequently, everything must be built from scratch — procedures developed, responsibilities defined, and clear structures established. It’s important to ensure that the board operates effectively, transparently, and with a clear understanding of its role. Many who join the boards of public institutions for the first time lack prior experience in this type of governance. They need to learn what a board is, what its duties are, how its functions differ from those of the executive management, and how to avoid micromanagement.
From my own experience, the greatest challenge was learning to clearly define the boundary — where the administration’s responsibility ends and where the board’s competence begins. This understanding is essential to ensure professional and effective board work.
Can you share an example of when your experience in the private sector helped you solve a problem in a state-owned enterprise? Or vice versa — when experience from the public sector proved useful in the private sector?
In my view, one of the most valuable skills I have gained in the private sector is the ability to argue and communicate effectively. In that environment, you learn to speak with facts and well-grounded arguments rather than emotions. This approach is especially important in board work, where decisions are often complex or debatable. It’s essential to be able to clearly justify your position, persuade colleagues, and explain why a particular decision is necessary.
In large boards such as those of universities, where people come from very different backgrounds and perspectives diversity of opinion is inevitable. To avoid conflicts or unnecessary tensions, we introduced a principle that decisions should be made by consensus. If someone objects to a proposal, we discuss why, and if needed, the vote is postponed to allow time for the administration to provide additional information. This approach helps ensure the quality of decisions and builds trust within the team.
This practice comes from the private sector, where decision-making is focused on efficiency but also on accountability. It helps create a professional, transparent, and results-oriented board culture in the public environment as well.
How would you assess the overall leadership culture in Latvia? Do you think we have enough people who are ready to take responsibility and become leaders or entrepreneurs?
I would say that the situation in Latvia is gradually improving, but there is still quite a lot of fear and lack of trust. Many people choose to stay within their comfort zone rather than take responsibility and risks. However, in the role of a leader or entrepreneur, that’s not possible — if you are afraid of risk, you will never create anything new.
Another important aspect is the culture of collaboration, which we sometimes lack. Many leaders try to control everything themselves instead of trusting their teams. But in reality, a leader’s true strength lies within the team. In my own company, I see how essential it is to speak openly, discuss, even argue — and eventually reach agreement to move forward. That is a great value.
Our education system should strengthen these very skills — trust, cooperation, decision-making, and accountability. Technical knowledge is important, but it’s the leadership and people skills that ultimately determine success.
I believe we are on the right path. The younger generation is more courageous, open-minded, and adaptable. If we give them the opportunity, they will take us far.
How do you maintain balance between professional responsibility and personal life?
Of course, it’s not easy. Often in the evening, when I’d like to relax, read a book, or watch a movie, messages or emails come in that require attention. Many of our partners are based in other countries and time zones, so communication often continues late into the evening.
Sometimes I consciously try to disconnect — turn off the screen, leave my phone in another room, and avoid checking messages. But it doesn’t always work, because the professional pace is intense, and it’s challenging to fully switch off.
That’s why it’s important for me to keep other activities that help balance my workload — meeting friends, exercising, or spending time in nature. I enjoy cycling, fishing, or simply being with my family while avoiding work conversations. These things help me maintain emotional balance and energy.
If a person doesn’t find a way to disconnect, burnout becomes a real risk. I’ve seen it happen to friends — especially those deeply immersed in their work and business. That’s why I consciously try to prevent it.
What advice would you give yourself if you were just starting your career today?
That’s not an easy question. I believe that at the beginning of a career, everything moves very fast — you do a lot, you make mistakes, and you learn from them. That’s how growth happens.
I remember one vivid example: we invested more than ten million euros in a new factory. When everything was ready and production began, serious problems appeared on the very first day — leaks, technical failures, the production line stopped. At that moment, it felt like everything had collapsed.
But we didn’t give up. We analyzed the mistakes, fixed them, and started again. A few months later, the factory was operating at 90% capacity. It was a very valuable lesson — don’t be afraid of mistakes. They teach you more than success ever could. If you make a mistake but draw the right conclusions, it makes you stronger and wiser.
If I could give advice to my younger self today, I would say: “Pause and think.” Sometimes it’s worth stopping for a moment to reflect and assess the situation, rather than just rushing forward.
But overall — I don’t regret anything. Everything I’ve done has shaped who I am.