Peter Crow
  • Home
  • About
  • Musings
  • Research
  • Contact

Governance, by looking backward

18/1/2014

3 Comments

 
The NACD's annual missive, of the burning issues likely to light up the corporate governance firmament in 2014, has just been published. The article, which claims to provide a comprehensive assessment of what's on the board director's horizon, makes interesting reading—as much for its omissions as its inclusions. Sadly, the reportedly burning issues, which were "gleaned from interviews with directors and corporate governance leaders", are historical, defensive or operational in nature.

I have no doubt the reported issues are the ones that were on the top of director's minds when they were interviewed. They are important, and need to be dealt with. However, the omission of issues that can make a difference to company performance is very revealing. Boards are responsible for optimising company performance in accordance with the shareholder's wishes. If the published list is any indicator, few boards will spend much time actually looking ahead in 2014 to issues that matter, like strategy, boardroom performance and accountability.

The question that drops out of this discussion is a tough one: Why do shareholders continue to appoint directors and accept boards that spend the bulk of their time looking backward?
3 Comments
Shaun Coffey
19/1/2014 17:56:17

Peter, thus is an excellent piece. Boards do need to get on the front foot, especially with strategy and edition. Annual strategy discussions are a thing of the past. They also need to be far more aware of trends and challenging management to respond in a more timely manner. Your challenge is a good one.

Reply
Peter Crow link
19/1/2014 23:45:32

Thank you Shaun. From boardroom observations I have done over th last twelve months (data collection for my PhD), I am of the view that strategy needs to feature on the agenda every meeting (through the consideration and on-going assessment of strategic options, leading to decisions). A couple of "strategy only" days per year, where the only agenda item is to consider the trends, the market and the company's response is also helpful. Such days should include the board, management, and selected customer and market experts (to inform the discussion).

This will mean a greater level of engagement by directors though, such that that may only have sufficient time to sit one two or three boards at any given time.

Reply
Shaun Coffey
20/1/2014 02:23:33

Peter. I totally concur with your comment on strategy. I frustration too, as a CEO experienced in the NZ scene, is the penchant to have monthly meetings, especially for Crown Entities. This tends to focus attention on the monthly accounts, becomes operational, and discourages attention to future strategy and trends.

Reply



Leave a Reply.

    Search

    Musings

    Thoughts on corporate governance, strategy and boardcraft; our place in the world; and other topics that catch my attention.

    View my profile on LinkedIn

    Categories

    All
    Accountability
    Artificial Intelligence
    Conferences
    Corporate Governance
    Decision Making
    Director Development
    Diversity
    Effectiveness
    Entrepreneur
    Ethics
    Family Business
    Governance
    Guest Post
    Language
    Leadership
    Management
    Monday Muse
    Performance
    Phd
    Readings
    Research
    Research Update
    Societal Wellbeing
    Speaking Engagements
    Strategy
    Sustainability
    Teaching
    Time Management
    Tough Questions
    Value Creation

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    July 2021
    June 2021
    March 2021
    February 2021
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    November 2019
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012

Dr. ​Peter Crow, CMInstD
© Copyright 2001-2025 | Terms of use & privacy
Photo from Colby Stopa
  • Home
  • About
  • Musings
  • Research
  • Contact