Archive - Peter Crow | Helping boards govern with impact

Published on: 15 November 2013

ECMLG'13: Reflections from Day 1

The first day of the 9th European Conference on Management Leadership and Governance is over. During the course of the day, some 29 peer-reviewed research papers were presented, in addition to Sloan's keynote at the beginning of the day. Some of the highlights and reflections from day 1 are listed below:

We have much to learn from each other. For example, I sat with a Professor from Neapolis University (Pafos, Cyprus) over dinner. We had a great, wide-ranging conversation, which included the sharing of some stories about the demands of tertiary education, and especially the challenges of securing a place in undergraduate programmes in highly-regarded universities around the world. I concluded that New Zealand students have it easy, especially when compared to the demands of entry at places like Imperial College in London (mind you, it is one of the top five rated engineering schools in the world).
We have much to learn from each other #2. In a side conversation between sessions, I was told that an Australian-based doctoral candidate had recently completed a multi-year case study of leadership in several organisations, using direct observation as a key data collection method. This is the first time I have heard of any study (anywhere) that has attempted the same sort of design as I am using. Hopefully, when more details are available in the next week or two, I'll be able to assess the correspondence between their study and mine, with a view to securing a meeting to learn more—especially to discover what learning might be applicable to my own work.
Many of the papers from Eastern European contributors followed a predictable pattern, of the statistical analysis of a set of quantitative data gathered from publicly available records. Some of the conclusions presented were a little tenuous, which is not surprising given the difficulties reporting generalisations about social phenomena from statistical data. Notwithstanding this, it was great to hear from enthusiastic researchers from a part of the world that I know little about, apart from what I have been exposed to in books and television programmes.
My own paper seemed to be well-received, despite a small audience. I appreciated the opportunity to summarise my work; to field questions from the floor; and, defend the philosophical and methodological approach that underpins my work. I am looking forward to more conversations on day 2 and beyond.
The conference dinner was held at Schloss Maria Loretto, on the shores of Wothersee. This beautiful castle that dates back to 1700s. The schloss is a short 8-minute walk from the conference hotel, so many of the delegates took a "walking bus" to get there. The food and service was outstanding. It was raining when we left, so many of us "enjoyed" the stroll back to the hotel in the gentle rain. My day ended damp but happy.

Published on: 15 November 2013

ECMLG'13: IT governance and technology topics

The ECMLG programme this year includes several papers on IT governance and related technology topics, which indicates an increasing level of interest amongst management, leadership and governance researchers. Some of the papers I attended and/or read include:

IT governance, decision-making and IT capabilities
Information technology leadership on electronic records management: The Malaysian experience
A framework for business–IT fusion
Business–IT fusion: developing a shared world view

Amongst these, an encouraging theme—of linking IT priorities with corporate business objectives—became apparent. This is heartening because, in my experience, many IT aficionados have been more interested in the evangelism of capability and particular methods and processes.

Published on: 15 November 2013

ECMLG'13: Moving boards from agency to performance

James Lockhart (Massey University, New Zealand) presented a paper which challenged the underlying foundation that has supported the majority of the governance research and practice over the last four decades. Lockhart opened by contending that the focus that many boards have on compliance has produced a generation of defensive, reputation-protecting boards, as opposed to boards that focus on business performance. Lockhart asserted that governance attention needs to change, away from compliance and towards factors that effect performance:

Division of labour: A clear division of labour, between boards and managers (cf. the often ambiguous roles of governance and management) is crucial to deciding who does what (efficiency and effectiveness)
Power: Hubris in the boardroom tends to determine what gets discussed, and therefore, what gets implemented. In contrast, humility and a commitment to cooperation should be conducive to refocussing attention on collegial efforts to discover, agree and work together towards the corporate objective.
The role of the owner: In many governance situations, the role of the owner has been forgotten or ignored. This should not be a surprise, because the governance legislation in many countries requires the board to act in the best interest of the company (cf. the owner). If the role of the owner is reasserted, boards' attention should move to the making of decisions that affect the goals and strategies of the owners/shareholders.

These points provide a useful basis for future governance research, and for practice. However, they assume that directors and boards have the competence and inclination to change their behaviours and embrace them—an assumption which, unfortunately, cannot be taken for granted.

Published on: 15 November 2013

ECMLG'13: Culture and conflict in MNCs

Selected views on the organisational culture of multinational corporiations

Alena Safrova Drasilova (Masaryk University, Czech Republic) presented her research on conflict and culture in multinational corporations (MNCs). Drasilova surveyed people from 2509 branches of 335 MNCs, in an effort to understand the influence of headquarters culture on the culture of branches located in the Czech Republic. The preliminary results indicated that MNCs headquartered in Europe displayed less conflict at the branch level than companies headquartered elsewhere.

The discussion that followed the paper was extensive—clearly the paper stimulated the interest of the audience. One aspect of the discussion explored the notion of cultural alignment in a category Drasilova described as global (companies that identified themselves as not having a national head office—Bosch being German, or IKEA being Swedish, for example—but rather a pervasive culture in which the characteristics of the brand itself prevails over the location of the country—McDonalds, for example)

It would be very interesting to understand if any linkages between culture/conflict and performance exist, particularly whether the presence or absence of conflict makes any difference. Drasilova said that no work had been undertaken yet, but that this is the next step in the research. I look forward to reading this next phase of work, because I suspect the approach she plans to take may well have parallels to my own work.

Published on: 14 November 2013

ECMLG'13: Opening keynote address

The 9th European Conference on Management Leadership and Governance was held at Alpin-Adria University, Klagenfurt, Austria.

The opening address, by Julia Sloan of the USA, explored the topic of learning to think strategically, and the importance of such thinking to sustainable business performance. Sloan drew a clear demarcation between strategic thinking, strategic planning and strategic implementation. She asserted that most organisational leaders have reasonably well-developed planning and implementation skills, but poorly developed thinking skills.

Whereas strategic planning tends to be linear, tidy, convergent, clean and aims to solve problems, strategic thinking tends to be non-linear, iterative, messy and aims to suspend problem solving while the nature of the problem is more clearly understood. Sloan suggested that leaders need to become skilled in strategic thinking and strategic planning. Otherwise, if leaders can only but plan in detail—without asking questions of context—and, as a result, expose their organisations to the very real chance of getting it wrong.

Sloan's thesis is as compelling as it is self-evident—which begs the question: Why do so many leaders ignore the strategic thinking element? Is it too hard, too complex, or is it simply a case of leaders not knowing what they don't know? Perhaps more importantly, how can this gap be bridged? Our business schools probably have an important responsibility in addressing these questions. They need to take stock of Sloan's thesis, with a view to adjusting their curricula, to emphasise the cognitive skills that are so obviously missing from the graduates emerging from their programmes.

Readers wanting to more should read Sloan's book "Learning to think strategically", the second edition of which has just been published.

Published on: 10 November 2013

ECMLG'13: Observations and insights

Later this week—on Thu 14 and Fri 15 November—I will be speaking at the 9th European Conference on Management, Leadership and Governance in Klagenfurt, Austria. I'm looking forward to renewing acquaintances and making some new connections; to presenting a paper to an international audience which will include some of the world's leading governance scholars; to testing some emergent ideas; and, to learning from others throughout the two days.

I plan to post reflections here during the conference, so check back if you'd like to hear about the latest developments in management, leadership and governance research and practice.

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