The National Association of Corporate Directors (NACD) has announced the establishment of a Blue Ribbon Commission to investigate the board's role in driving long-term value creation. You can read the full announcement here. Twenty-six "distinguished corporate leaders and governance experts" have been appointed as commissioners. Surprisingly, no corporate governance academics have been appointed. This begs the question of how the BRC intends to go about its work, and to conduct empirical research in particular. I hope the opportunity to investigate what value creation is—and how it is created—is not lost. I'm in two minds about this investigation. On one hand, it confirms the profession has a serious problem: that we simply don't know how boards add value or influence performance begs the question of what directors and boards actually do. On the other hand, congratulations are due to the NACD taking the bold step of commissioning the investigation. The subject is topical (in the last six months alone, I have been party to well over 100 conversations and debates on the topic of strategy in the boardroom), to the point of being somewhat personal (the subject is at the heart of my doctoral research). Consequently, I intend to watch developments closely especially as the commission seems to be very similar to a study undertaken last year. If asked, I will make my research findings available to the BRC.
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Just over three years after first setting out, I arrived at a small but significant milestone on my doctoral research today. The candidate final draft of the thesis (a 'mere' 336 pages) was sent to my supervisors for their detailed review. I'm hoping that, subject to relatively minor edits and changes, this draft will be submitted for examination. The personal satisfaction of arriving at this point is palpable: Some of the numbers: read over 1000 articles; listened to over 6GB of audio recordings of board meetings and interviews; read and analysed over 900 printed pages of documentation; untold hours spent wrestling with candidate theories; and, written over 83,000 words (this is what remains, I've probably written and scrapped at least 20,000 more than this). The going has been tough lately, because writing up a thesis, in an academic style is not my forte. A couple of months ago, I expressed some frustration. Today, the sun shone again, and it was good. Tomorrow will be my second day off in 2015. After a steady diet of 14 hour days, my wife is not sure what I'll do with myself. I've got a fair idea: it'll probably involve a Colnago, and I doubt there will be a word processor in sight! Thank you to everyone who has provided support to this point. The journey is not over yet, but I'm hopeful that the end is not too far away now.
Nine business days after arriving in England for meetings and speaking engagements in several English and Swiss cities, I am once more seated at Heathrow: this time to enjoy Air Zealand's service on the long flight home—and to sleep! Reflecting on fifteen meetings, eight hotels and many conversations, the main thought to emerge from this trip is "demand". Simply, the level of interest in boards, board practice and how to get boards doing the 'right' things in order to achieve the business performance outcomes expected by shareholders has been almost overwhelming. For example:
That so many people are actively seeking help to improve business performance through effective contributions in the boardroom has caught me on the hop. After all, the public persona presented by boards and chief executives is that they have everything under control. However, when the conversation moves beyond platitudes, its seems most are worried. I have put myself at the service of all who are interested. If you would like to know more, or to schedule some assistance, please contact me.
I've spent the last six weeks working hard (seven days a week), towards my goal of completing the doctoral research thesis, in readiness for a final check by my supervisors before it is submitted for examination. That process has involved long hours of focussed concentration and a fair dose of pedantry. Those of you who have completed doctoral research will know exactly what I mean, no doubt. Progress has been steady, but the pointy end of the process is taking longer than expected; more so following the arrival yesterday of some feedback from one of my supervisors. The feedback received over the past few weeks has been positive and encouraging. However, the latest feedback has introduced some unexpected obstacles to be dealt with. It's frustrating to say the least. While it would have been nice for my supervisor to have signalled the issues to be dealt with earlier than this, the bigger picture—of providing an explanation of how boards can influence business performance—remains my guiding motivation. If the unsolicited feedback received from people around the world is any indication, many boards and business leaders are eagerly waiting to read and understand the recommendations. That's a huge responsibility. Consequently, I choose to remain focussed, even though the goal is now a little further away than previously thought. I'll keep you informed.
Christmas is nigh. In four days time, the hurly-burly that typically precedes Christmas—decorating houses, selecting gifts, preparing food and organising travel and accommodation—will be over. The decorations will be taken down and packed away, and most of us will take some time off work. As we relax, many of us recall major events from the year and ponder what the future might hold. I'm no exception, although I have some unfinished business to deal with first: to say thank you.
The goal I set twelve months ago, of completing the doctoral thesis for submission by Christmas, has slipped my grasp. However, good progress was made throughout the year. My new goal, of submitting the thesis by Waitangi Day, is quite achievable. Despite this hiccup, the level of support and encouragement that has flowed throughout the year has been amazing. Thank you. I have met people—some of whom have become friends—at conferences; in business meetings; at workshops; and, on LinkedIn, Twitter and email. Some of the conversations have blown me away. That such a broad church of people from all around the world might be interested in learning how boards can influence business performance has given me great hope; that the research may have some real value in practice. I will 'sign off' from the thesis write-up on 23 December, and not return to it until 2 January. I'm tired and need a break to recharge for the final push to submit the thesis and then to prepare for the oral examination. Looking to 2015, I have three main priorities:
If you think you might want some assistance in 2015; or, if have a board vacancy; or, if want to hear about my research or have me speak; or, if you simply want stay in touch, please let me know. I'd love to hear from you. To follow my work, please check this page periodically—the musings will continue to be published for as long as people read them and say they are helpful. Merry Christmas.
A question posed at a faculty seminar held at Massey University recently has set me thinking. My supervisor was the primary presenter, and I was there as one of his protégés that had been asked to make a contribution. My task was explore the importance of access (to make first-hand observations of what actually happens in boardrooms) and, given access, to discuss the implications for both research and knowledge. The seminar was a low-key affair. However, one of the questions gripped me. In asking, the person demonstrated that their understanding of business was quite different from mine. The question was valid and needed to be answered (and it was), despite my judgement that is was rather inconsequential given my worldview. This brief exchange highlighted one of the main challenges of doctoral research: communication. How does one summarise their ideas and findings into a cohesive story that will be read and accepted by three learned people (examiners!) with a critical mindset? I have a fair idea of what I want to say, but what is the best way to get the message across? The answer seems to lie in one word: pedantry. And therein lies the challenge, for me anyway. While I know my topic pretty well—having lived and breathed it for nearly three years now—an examiner will arrive at the cover page of the thesis document 'cold'. Researchers need to take readers on a journey, starting with a descriptive title and ending with a solid conclusion. The question taught me that the journey is probably as important as the destination. The introduction should simply state the problem and position the research. The historical view of the research literature, the approach taken by me and the findings all need to be revealed in the pages that follow. The summary of findings should be reserved for the final chapter. Positioning the research is also important. The question reminded me that every term that is subject to multiple interpretations needs to be defined, to avoid misinterpretation. I've had to go back to the literature many times in recent weeks, to check things and to make adjustments. Finally, the spelling, grammar and referencing needs to be 'perfect'. While the going has been tough of late, the good news is that I am stepping closer to the goal with every passing day, even though my arrival is now more likely to be in January. But I'm relaxed about that.
The 10th European Conference on Management, Leadership and Governance is over. The conference organiser, Academic Conferences International, and the host, VERN' University, did a great job hosting the event in Zagreb, Croatia. I now have returned to London, ahead of some meetings with researchers and business people before flying home later in the week. Some reflections on the conference:
Sharp-eyed readers will notice that I have not reflected on my own paper, or on the session that I chaired. The reason for this is straightforward. It's pretty hard to offer anything approaching an objective critique of one's own paper, and the prospect of making comprehensive notes (to inform the blog summary) when also chairing the session is 'too hard'. If you would like a report on the session or my paper, or would like any other information about the conference, please contact me. Next year, the conference is being hosted by the Military Academy in Lisbon, Portugal. I met Luis and Carlos when they announced the location and the date (12–13 November 2015). They are great guys and, if the professionalism and commitment they demonstrated in Zagreb is any indication, the 11th edition of the conference promises to be a fantastic event.
The 10th European Conference on Management Leadership and Governance starts tonight with a welcome function for delegates. This year the conference is being hosted by VERN' University, in Zagreb, Croatia. I am rested after the long flight from New Zealand via London, and am looking forward to hearing about the latest developments in management, leadership and corporate governance research over the next two days. Please check back regularly if you are interested in the discussion. I will post session summaries here during the conference, and use the #ECMLG2014 hashtag on Twitter to announce new postings. The full conference programme is available here. If you are interested in a particular session, please let me know and I will do my best to attend and report on it for you.
I've been deep in thought in recent days, lost in the depths of my research; trying to get to the bottom of something that has been troubling me—to the extent that I neglected to post a research update last week. Sorry! Thankfully, some clarity started to emerge in the last two or three days. The concept that has been troubling me has been behaviour, or more specifically, the necessary behaviour of directors as they seek to make meaningful contributions to effective board practice and business performance. Several researchers—including, notably, Larcker and Tayan—have suggested that the behaviour of directors in the boardroom is crucial to the achievement of performance outcomes. Various attributes have been described. However, that is where the research seems to stop: at description. I'm still working through the literature, but am yet to find anything approaching a robust, explanatory argument. The question that I've been pondering builds on this: Does a link exist between the social mechanisms that my research seems to suggest are important, and certain fundamental (personality level) behaviours of directors? Further, might the link be such that these crucial behaviours are yet another layer in the stratified view of reality that is emerging from my research? The tentative answers seem to be yes and yes. This is exciting because it could mean that a couple of disparate threads of corporate governance research can be brought together. However, I am not confident enough about this new dimension yet, to know whether it is credible or not. Notwithstanding this, if you have any experience, or can point to any research to guide me, I'm all ears.
The 10th European Conference on Management Leadership and Governance (hashtag #ECMLG2014) is almost upon us. This year, the conference is being held in Zagreb, Croatia on 13–14 November. I have a session to chair and a paper to deliver. Also, I hope to renew some acquaintances and get some feedback on my latest research while there. A copy of the full conference programme is available here. As with other conferences I have attended, I will post updates and reflections throughout the conference, right here on this blog. Please contact me if there is a paper that you are particularly interested in, so that I can attend and provide a report. My journey from New Zealand to Croatia is via London, to attend some meetings (although I still have a few gaps, so please contact me if you wish to meet) and, hopefully, sneak another peak at the poppies at the Tower of London.
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