Archive - Peter Crow | Helping boards govern with impact

Published on: 23 November 2016

GIA conference and more: Serving boards in Sydney

The Governance Institute of Australia's national conference starts on Sunday 27 November at the Hilton Hotel in the Sydney CBD. I'll be at the conference on 28–29 Nov(*) to listen to what looks like a great lineup of speakers, and to serve as a panelist on Tue 29. The panel topic is "The pursuit of productivity".

If you're going to be at the GIA conference and want to say hello, please feel free to phone me or send an SMS. My number is here.

Following the conference, I will remain in Sydney for two more days (Wed 30 Nov and Thu 1 Dec) for private meetings. If you would like to take advantage of my proximity to chat about corporate governance; board effectiveness; corporate strategy; emerging trends and the findings from my recent research; or, any related matter of interest, I'd be delighted to make a time to meet. Please get in touch to set up a meeting. Currently, there are several gaps in my diary including dinner on Wed 30 Now and breakfast on Thu 1 Dec.

(*) Session summaries will be posted here throughout the conference. Please check back if you are interested.

Published on: 23 November 2016

On corporate governance, boardroom ethics and Brexit

One of the joys of working internationally is the opportunities it presents to discuss topics in a range of different contexts. While most of these discussions are either private (with clients) or rather impersonal (conference presentations), some are recorded for the benefit of a wider audience—including this recent conversation with Lavaniya Das of Azeus Convene. We talked about corporate governance, boardroom ethics and how the C-suite is dealing with Brexit:

Listen to the conversation

If you want to explore any of the points discussed in this interview, or challenge them, please feel free to either reply below or get in touch via email.

Published on: 18 November 2016

How can boards exert influence from the boardroom?

A burning question for many directors is encapsulated in the title of this muse. In recent years, the business media has published many stories about boards; questionable board practices; assertive CEOs that 'take over': and, missteps and failures that seem to emanate from the boardroom. Some of these stories are justified, whereas others lack substance. Alongside, the academic community has investigated the question, although typically from the perspective of a desk-based researcher using public data or, at best, interview comments. Reliable knowledge about the board's role in influencing business performance has remained elusive. Sadly, unsubstantiated claims have filled the void.

I have spent several years investigating the question of board influence beyond the boardroom as well, to discover whether boards are simply disempowered groups that meet to rubber stamp decisions, or whether influence (especially over firm performance) is possible. The quest has included longitudinal observations of board meetings; interviews with chairmen, directors and chief executives; and, the analysis of very large piles (mountains, seemingly!) of board papers, minutes, reports and observation notes. Useful insights have been gleaned from informal discussions with directors have provided useful insights as well.

While no definitive answers to the burning question have emerged (in any predictable sense anyway), a pattern is clearly apparent:

Influence is possible. The board's active and sustained involvement in an agreed set of strategic management tasks (especially strategy formulation, strategic decision-making and verifying strategic outcomes are being achieved) is crucial if the board's interventions are to have any effect on the achievement of desired business performance goals. Director capability, board activity and boardroom behaviours matter. Specifically, the harmonious expression of five underlying behaviours are necessary if the board is to have any impact.
However, outcomes are not guaranteed. The board does not operate the company directly (that task is normally assigned to the chief executive), and many other factors both within and outside the company (most of which are outside the board's direct control) can affect actual performance.

Findings have been written up in my doctoral thesis. These findings are summarised in two published papers, with similar sounding titles.

How boards influence business performance: Developing an explanation. This paper was published in Leadership and Organization Development Journal (Volume 37, Issue 8), an academic journal.
Board influence from and beyond the boardroom: A provisional explanation. This paper was warmly received (it received the best paper award) at the European Institute of Advanced Management Studies' 13th Annual Workshop on Corporate Governance in Milan in late October 2016.

Copies of the papers are available here. If you want to know more, please get in touch. I'd be glad to discuss the findings (especially the implications and guidance for practice) with any board or group intent on realising and sustaining high levels of company performance.

Published on: 15 November 2016

About turn, Mrs May?

After initially standing strong, sustained lobbying and public commentary seems to have had an affect on British Prime Minister, Theresa May. News has emerged that the PM has backed down on an earlier pledge to introduce 'employee directors'. This is an interesting development. The Institute of Directors and unions (understandably) were supportive of the proposal. However, many business leaders expressed wonderment.

Corporate governance has entered troubled waters, without question. But to suggest or even believe that structural changes might lead to better outcomes, without considering the function of boards holistically is short-sighted, at best—regardless of what any enquiry might determine. But let us not pre-empt the process now underway. The political process owes as much, to its constituency and, more generally, to the British economy. What do you think?

Published on: 15 November 2016

Improving board effectiveness: Let's meet, in Sydney

If I had a dollar for every time questions of board effectiveness and how to drive performance from the boardroom has been discussed in my hearing, I'd be well off. My role in answering these questions will continue in Sydney at the end of the month.

The organisers of the Governance Institute of Australia annual conference (28–29 November) have invited me to be a panelist alongside Simon Pordage and Amanda Wilson. I am looking forward to serving the Australian board and governance community in this way. The topic that the panel will be wrestling with, "The pursuit of productivity", promises for a lively discussion!
Following the conference, I will remain in Sydney for two days (30 November and 1 December) for private meetings with directors, boards and other leaders. If you would like to meet to explore good corporate governance; how to respond to emerging challenges in your business; or, the results of my latest research and the implications for more effective board practice, I'd be delighted to sit with you. Please get in touch to schedule a meeting.

Published on: 4 November 2016

Best paper award!

The 'best paper' awards from the 13th Annual Corporate Governance Workshop (of the European Institute for Advanced Studies in Management, held in Milan last week) have just been announced. The Award Committee recognised Board influence from and beyond the boardroom: A provisional explanation, my paper. While the paper was warmly received when it was presented and many interesting discussions followed during the conference and since, the award was an unexpected surprise. That the findings from my governance research have been recognised by an international group of scholars is truly gratifying. Thank you, I am honoured.

If you want to learn more about the research and findings (especially the practical implications for boards), please get in touch.

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