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    It's not working. But why is nobody talking about it?

    Accountability Societal Wellbeing
    Guest blog: Tim Sillay (Wellington, New Zealand)
    I'm angry. It appears that as a society, we are hell bent on eliminating risk. There doesn't appear to be any sensible discussion on acceptable levels of risk, witness the current implementation of the health and safety legislation. When you see a site board on a building site list 'uneven ground' as a hazard, it is obvious that things have become seriously retarded.
    Now I'm not saying we should stand idly by and watch people bury depleted uranium, or leave boxes of dynamite laying around school playgrounds, but these futile attempts to wrap the world in cotton wool are breeding entire generations with no ability to assess or manage real world risk. What it is breeding is an entire generation of 'non-producers', paper shuffling bureaucrats whose job it is to police this whole mess.
    Let's face it, we've cut down all the trees in the playgrounds and removed all the really fun playground equipment, so little Johnny has no idea that walking on a slender branch will eventually result in hard contact with mother earth. You can't play bull rush or ball tag, so he also has no idea that fast moving people or things really hurt when they hit you... How are you going to figure practical application of geometry if you don't live the dream of 'tangent to the arc' on the witch’s hat? How do you figure out that some kids are better at sport, some are better at math and some are just plain stupid if everyone gets a certificate for participation.
    So by the time Johnny has completed his tertiary education and graduated with real world skills in something like coffee making, subsequently sued his employer for allowing him to come into contact with a hot cuppa and taken a nice safe office job as a health and safety inspector in an egalitarian agency where everyone has an opinion and everyone’s opinion matters, little Johnny, with no ability to judge what is and is not a real world risk, with no concept that someone may be smarter, more experienced or just plain crazy is the man who may eventually rise through the ranks and craft policy.
    With no one to argue the toss, the policy pendulum has swung firmly to the outer limit of 'no risk is acceptable' and 'all people are equals'.
    Which is patently ridiculous. This is just not the way the world works. This is what happens when as a country, you stop producing things. You lose the generational memory and experience of what it means to balance risk and reward. You forget that some people are good at thinking about stuff and some people just like to do stuff. The western world would not exist if it was settled under this legislation. When the thinkers start mandating to the doers, or the doers revolt against the thinkers, when you reach a point in the development of civilisation where no injury, code violation or upset feelings shall go unpunished, you are, quite frankly, fucked.
    But here I find a startling double standard. Let's start with a Saturday evening some three weeks ago when I received the unsettling news that a wonderful lady and long time acquaintance of ours had been murdered by her friend. Shock, disbelief, anger but most of all a sense of a grand imbalance in the fabric of the world. How can such a gentle girl have met such a violent end? What possible sequence of events led to this? How did we as a society so obsessed with the elimination of risk let this happen? 
    And there it was, that of which we shall never speak, our old bed fellow mental health. Over the last 30 years as we moved inexorably towards this sham world of universal acceptance, equality, tolerance and non-productivity we forgot that crazy people are actually crazy.
    Somewhere, in spite of all the signs to the contrary, we forgot all about unacceptable risk. I fail to see the chain of logic symbolised by these responses:
    • "It's not polite to incarcerate."
    • "This simply will not do."
    • "Let's tear down Kimberly, Kingseat and Lake Alice."
    • "You weren’t yourself when you did it."
    • "Be a good boy, take your drugs and hangout downtown shuffling through rubbish bins."
    • "What possible harm can you do."
    Somewhere, the policy wonks ran riot over the doers, those who lived the reality of day-to-day life with the insane.
    I can hear the sharp intake of breath. I can hear the agonised humanitarian wails of "You can't say that". I can even hear the bean counters rationalise it on a cost basis. I bet if you listened carefully, on a quiet day where the wind is blowing in just the right direction, you'll find an actuarial report that rationalises the occasional damaged child or other collateral damage about a crazy person gone off the rails.
    ​But you'd better be whispering. We NEVER discuss this kind of thing in polite society.
    So here's a brief history lesson. Teenage Suicide. It was a bloody epidemic in the 80's. I lost several from the circle and it hurt. It hurt a hell of a lot. Witnessing the grieving parents of a teenage girl will stay with me forever. It was more horrendous than the senseless killing of my friend by a crazy person, in as much as there is a scale for these things.
    It obviously was a problem, it obviously wasn't acceptable. So what did we do as a society? WE STARTED TALKING ABOUT IT.
    So I applaud the news that Coroner Michael Robb is conducting an enquiry into mental health related killings. Long may it make front page news. Maybe, just perhaps, this senseless, vile, unfathomable thing is the point where we all cry ‘enough’.
    Guest blog: Tim Sillay (Wellington, New Zealand)
  • Published on

    Downtime is great for relocating your True North

    Accountability Governance Societal Wellbeing
    Busy-ness seems to be a fact of life for many people these days. Whether it is running between commitments, as a business person, as a parent or anything in between, downtime has become a precious commodity—one to be treasured and nurtured. Modern conveniences like unlimited wifi (including on some flights nowadays) mean we are never far away from activity and doing things that, in our own mind at least, add to our personal sense of worth.
    While busy-ness can be a good thing, more often than not sustained periods of busy-ness will lead to reduced effectiveness and possibly even burnout or breakdown. We get so wound up doing stuff that our world closes in around us, until we lose sight of 'why'—our True North. Loosing perspective is not good for us, or those around us.
    As a senior executive or company director with significant responsibilities, you no doubt have a busy schedule. How do you keep things in perspective to ensure that you are actually effective in your work? Do you have an anchor, a True North, and do you referencing back to it? ​​
    For me, downtime is the key to effectiveness—slowing the heart rate; getting away from people; taking time out to explore ideas (that would not normally even register on my everyday radar); and, in so doing, remind myself of what really matters, my True North. I do that by reading. Here's a selection of the books currently on my reading list. If you read as a means of maintaining your perspective, I commend them to you.
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    PS: What you do to keep track of your True North doesn't really matter. Go for a walk, paint, read, sew, draw or whatever else takes your fancy. That you are taking time out from the busy-ness of life is what will make the difference to your effectiveness—as paradoxical as that may seem. 
  • Published on

    On the director–shareholder relationship

    Accountability Decision Making Ethics Governance Performance
    It had to happen. Someone just asked one of 'those' questions. Should boards of directors communicate with shareholders? Great question Lex Suvanto! You can read his blog post here. Amongst his comments, Suvanto makes two quite startling observations: 
    Many directors are passionately against the idea of engaging directly with shareholders.
    Directors also correctly point out that the board should not say anything out of step with management anyway, so they question the value of this effort, especially given limited available time that directors can devote.
    These observations, and others in the article raise important supplementary questions about how boards conceive their role and the mindset of directors—including these:
    Ultimately, appropriate responses to these questions are straightforward if boards understand the statutory framework and directors have a clear understanding of both why boards exist and what boards (should) do (i.e., corporate governance).
    ​Directors are appointed by shareholders to ensure the effective operation of the company, in accordance with shareholder wishes (whatever they might be). If the senior-most decision-maker in the company is the board, is it not reasonable to expect the board to both understand what the shareholders want from their investment and subsequently provide an account to those that put them there? I think so. Suvanto's article contains some helpful suggestions to get started. I'm available if you want to chat further.
  • Published on

    On boards, #Brexit, bravado...and reality

    Accountability Decision Making Ethics Governance Performance
    News emerged today that many FTSE 250 company boards had made no contingency plans for a possible #Brexit decision. As Alice Korngold notes in her article, this highlights serious deficiencies in relation to risk management, board process and board composition. Korngold is right to challenge boards on this exposure. But does Korngold go far enough? Most of the concerns expressed are framed in the context of a traditional understanding of boards and corporate governance: monitoring the executive and managing various risks.
    Directors carry important duties, to the company and shareholders. In addition to acting in the company's best interests, directors have an important responsibility to deliver value to shareholders (in whatever form might be agreed). This means that monitoring the executive and managing risks is insufficient. More is required. Boards also need to make important decisions to set the company on a path towards a desired future state.
    An increasing percentage of directors say they are involved in strategy (read the surveys), suggesting boards do take their responsibilities seriously. However, observations of boards in session (i.e., board meetings) suggests that a gap exists between claimed and actual behaviour. Korngold's commentary adds to those concerns. That some boards are not performing the 'basics' of monitoring performance and managing risk adequately—let alone driving future performance—is problematic. What confidence can shareholders have that boards are considering strategic options and determining an appropriate strategy to achieve the company's purpose? The bluff and bravado that has permeated the discourse needs to be replaced with an authentic commitment to drive business performance. Is this too much to ask?
    Looking to the future, if the result of the British plebiscite does little more than motivate boards to take the future performance of the company more seriously, then it will have been a worthwhile exercise. Until then, Barton and Wiseman's observations are likely to remain—sadly—resoundingly accurate.
  • Published on

    Experts, yet we have much to learn

    Decision Making Ethics Governance Leadership Societal Wellbeing
    One of the biggest shake-ups to confront the Western World (since the collapse of communism and the fall of the Berlin Wall anyway) occurred in the United Kingdom last week. The result of a much anticipated plebiscite was a decision by the British people to leave the EU. In the weeks leading up to the referendum, the flow of information became a cacophony as politicians, scaremongers and other 'experts' promoted various positions, in an effort to influence to voting public. 
    Finally, the day arrived and the people voted. Soon, the results were published. The people had spoken. Some cheered while others mourned. Curiously, some reacted by rueing their decision, wondering whether they had voted wisely. Really? With a straightforward question to answer and a plethora of information to hand, how could anyone make the 'wrong' choice (unless they didn't vote, of course)? Is this reaction an outpouring of buyer's remorse on a national scale, or is something else going on—an indication that some did not take the decision seriously or that a dose of hubris clouded the better judgement of some voters perhaps?
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    The British plebiscite highlights a behavioural weakness that besets many people. From an early age, we spend our lives learning as much as we can, aspiring to become experts in whatever field interests us. Most of us want to excel; to realise our potential. In our haste to make decisions and get ahead, we tend to embrace new ideas and disregard 'old' ones. If we can secure an advantage, we'll take it—thank you very much. But when it comes to big decisions, we may not be as smart as we think we are. Decisions that are based on politically-motivated or emotion-filled pleas, or knee-jerk responses seldom deliver the 'best' outcome.
    Often, the best decisions are those made after we have paused and looked back, for guidance about how best to move forward. Whether we are cast as leaders or followers, we could do far worse than to seek out people like Bill and Augusto, sit with them and, having asked them a question, listen intently to what they have to say. Our challenge, having sat and listened, is to act on the wisdom passed to us.
  • Published on

    Teamwork, to enhance the learning experience

    Decision Making Family Business Governance Teaching
    The sharing of knowledge with clients and conference attendees is an activity that I find very fulfilling, mainly because it is a two-way activity. Be it facilitating a professional development course, speaking at a conference or dinner event, or facilitating a private learning workshop, the opportunity to both share knowledge with and learn from attendees is one to be taken seriously.
    On several occasions recently, I have had the privilege of seeing this operate at yet another level: a team-based delivery model whereby two presenters work together to share insights, answer to questions and learn from the assembled group. The positive response from attendees to a team-based model was a sight to behold. The levels of engagement; esprit de corps; and, quality of learning amongst the assembled group (not to mention the banter between the presenters) really lifted the learning experience. The following examples provide windows into two of my recent experiences, and then the learnings to emerge follow.
    Rural Governance Development Programme
    Earlier this year, Peter Allen of Business Torque Systems invited me to join a team to refine the five-day Governance Development Programme (a popular course previously run by DairyNZ for dairy businesses) to suit all of rural businesses. In updating the course, a decision was made to use a team-based delivery model, with two presenters working together with attendees. The hope was that this would provide better coverage of the material, as well as enabling attendees (directors, shareholders and chief executives of rural businesses) to a hear different perspectives as the course progressed. And so we jumped in...
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    We resolved to work from the front of the room together, sharing the speaking and listening roles...
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    We stepped aside, to check in and make adjustments... This ​picture, taken on the third day (of five—the course days are spread over a ten-month period so delegates can apply their learning in practice and bring questions and experiences back to the next session), captured us discussing a couple of 'in-flight' adjustments while participants worked on an exercise to improve their strategic decision-making skills in a boardroom setting.
    Health sector board member development workshop
    The second example relates to the delivery of a professional development session for the board members and executives of three primary health organisations (PHOs). They wanted a refresher on board effectiveness and strategy in the boardroom—topics dear to me. The organiser was keen on a two-person delivery model as well, which created another opportunity to explore and experience the effectiveness of the team-based model.
    I organised to work with a trusted colleague, Murray. We know each other well and share a commitment to excellence but have slightly different styles. After introductions and scene-setting, we asked the group to tell us what they wanted to get from the session and to mention specific areas of interest. Then it fell on me to lead the first session (board effectiveness) with Murray chipping in regularly to help answer questions and share examples from his experience. The roles were reversed for the second (strategy) session later in the afternoon. Finally, we jointly ran an free-flowing plenary session to check all of the areas of interest had been addressed and answer any remaining questions.
    Learnings
    Feedback from the attendees (informal plus evaluation sheets) from both the rural course and the health sector learning session indicated that the double-teaming model works. Attendees said they got more from the session than they thought they might have gained had there been one presenter. They could listen to and tell stories to connect ideas with practice; ask similar questions and get a different (!) responses; and, they said they benefitted from tapping into a broader pool of knowledge and experience than what would otherwise have been possible.
    One board member went as far as saying that the session was "the best learning session ever organised by <PHO-name omitted>", gratifying feedback indeed. The levels of trust and interaction in the room in both the rural course and the health sector session were also noticeably high. (Whether this is a reflection of what is being modelled from the front of the room or it is simply an expression of the delegates' innate character and desire to learn is open for debate!)
    Where to from here? Though not without its challenges (working so closely together requires considerable planning and trust, for example), the early experiences have been positive. There is also a 'cost' of putting two people in the room. However, the benefits in terms of enhanced learning outcomes tip the balance in favour of the team-based model—especially for advanced topics and multi-day courses. The learning theorists are probably all across this, so I'll need to play catch-up.
    If you have any experiences to share—positive or negative—I'd be keen to hear from you. Please respond by posting a reply or send me an email.