The Institute of Directors in New Zealand is embarking on a metamorphosis, to transform itself from a membership organisation into a professional body. This is great news. While the Companies Act 1993 and various other statutes provide legal remedies for fraudulent behaviour, there is no mandatory framework to ensure high standards are maintained across the cohort of directors. In contrast, other professions—including doctors, lawyers and accountants (for example)—have had compulsory competency standards, continuing professional development and discipline measures in place for many years. The proposal, to introduce a Chartered Director framework, seeks to address this gap.
The Institute has invited me to join an External Review Group, which is being formed to provide an informed, independent and sensible external perspective. To be asked to contribute to the professionalisation of one's vocational group in this way is both exciting and humbling. I'm looking forward to it though, because this initiative is likely to have a significant impact on the practice of governance and, hopefully, business performance.
Thoughts on corporate governance, strategy and effective board practice; our place in the world; and, other things that catch my attention.