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    The importance of catching one's breath: time-out is not time wasted

    Decision Making Governance Phd Teaching
    Picture
    When I was in London most recently, in June, I fortunate to visit Greenwich. A friend had told me that Greenwich Village is 'different' and that a visit was in order. And it was! In contrast to the hustle and bustle of the City, Canary Wharf and the West End, the people of Greenwich are more laid back. They smile, they say 'hello' and they walk more slowly than their neighbours across the Thames. Many, like the twelve in the picture, happily sit and peer into the distance, taking it all in. Who knows what they were thinking or even looking at. It probably doesn't matter, I guess.
    Why am I relating this story? My short visit occurred three-quarters of the way through a hectic three-week multi-country trip. It reminded me of the importance of downtime. With hindsight, the interlude—to gather my thoughts—probably made the difference between just making it through the final week of the trip, and finishing the trip well.
    Today, as I was working on a presentation to be delivered on my next trip (1–11 September), thoughts of that Greenwich interlude entered my consciousness. The upcoming trip is packed with seventeen significant commitments including two master classes, three presentations, two important dinners and several planning and roundtable meetings; in London, Canterbury, Leeds, Wolverhampton, Dublin and Belfast. It'll be a busy trip. To top it off, our elder son, who is working in Germany at present, has just asked if we can meet up in London while I'm there. Of course, but when? Then the penny dropped. Rather than pursue two remaining 'pencilled in' meetings, why not spend an afternoon with Tim? Two carefully crafted emails later, some 'Greenwich Time' was locked in. I'm looking forward to it already.
    As you move through Friday, my hope is that you too will have the opportunity—better still, take the opportunity—to run on Greenwich Time this weekend. If we are to perform well when it counts, we need to set time aside to relax, recharge and to prepare—mentally, physically and spiritually—for that which lies ahead.
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    Want to learn about emerging corporate governance and board practice themes?

    Conferences Governance Leadership Performance Speaking Engagements
    Is effective corporate governance and board practice, in pursuit of high business performance, an important priority for you and your colleagues? If so, please read on. 
    From 1 September, I will be meeting with directors, executives and researchers in several UK cities (London, Wolverhampton, Leeds, Dublin, Belfast and Canterbury) to discuss the role of the board in influencing business performance. While the schedule for my eleven-day visit is fairly full, some gaps remain for additional meetings. Please get in touch if you wish to meet or have a private chat. Alternatively, you may wish to introduce yourself at one of these public events:
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    Internships: a vehicle for getting aspiring directors up to speed?

    Accountability Governance Performance
    The ‘profession’ of company direction seems to be beset with an interesting challenge: how can or should aspiring directors be introduced to boardrooms without compromising the quality of oversight and effectiveness of the board? A range of responses have been tried, with varying degrees of success. Might internships be a viable option? Thanks to the folk at Ethical Boardroom, I've had the honour of contributing to the debate. Click here to read to commentary, published in the Summer issue of Ethical Boardroom magazine.
    If you'd like to know more, or to engage a hearty debate, please get in touch.
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    Health sector seminar: Board governance, a reality check

    Decision Making Ethics Governance Leadership Societal Wellbeing Strategy
    Every day, around the world, leaders in the health sector face a formidable challenge. On one hand, insatiable demands press in as people expect physical and mental health (foundational to our well-being). On the other, resources are limited—providers simply can't do everything. Consequently, tough choices need to be made, to ensure the appropriate services are delivered, efficiently and effectively. The complexity of the problem means 'best practice' answers are few and far between. However, progress should be possible if a clear sense of purpose, appropriate strategy and effective monitoring systems are all in place.
    The England Centre for Practice Development is hosting an interactive seminar on 11 September, to help health and social care sector leaders explore these key issues and challenges. I have been asked to facilitate the seminar, and to share insights from research and experience in boardrooms. Topics to be discussed include:
    • Lessons from the coalface ‘School of hard knocks’
    • Emerging international research
    • Keeping strategy on the agenda
    • Driving (the need for) efficiency and effectiveness
    • Ensuring accountability and performance
    • A pathway forward: An integrated strategy framework for boards
    If you are a board director or an executive of a clinical commissioning group or health provider; a policy maker; a researcher; or, an interested party, I encourage you to join the debate. 
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    On the sources (and a possible remedy) of so-called "governance failure"

    Accountability Ethics Governance Leadership Performance Research Strategy
    The much-storied scandals at FIFA, HSBC and Toshiba have highlighted a plethora of weaknesses in the way large companies are led and run. Fingers have been pointed and blame apportioned. Management has copped a fair bit of flak, but the board has not been immune either. While the media has had a field day, finger pointing and broad statements provide little comfort to those in pursuit of long-term performance. Remedies are required.
    Reputability has studied a number of failures recently(*), in pursuit of remedies. The analysis identified nine prominent categories of weakness, the first six of which were influential in the majority of failures:
    • Board skill and NED control
    • Board risk blindness
    • Defective information to or from board
    • Leadership on ethos and culture
    • Risk from incentives
    • Risk from complexity
    • Risk glass ceiling
    • Charismatic leader
    • Poor crisis management
    When these factors are considered holistically, the stark implication is that failure appears to be associated with board weakness in at least three areas (engagement, strategy and risk). If boards are to make effective contributions, these weaknesses need to be resolved. And therein lies a challenge: a return to first principles, and a different conception of corporate governance is likely to be necessary. Will boards embrace such a change in pursuit of better business performance? Let's hope so.
    (*) The full Reputability Report, entitled Deconstructing failure—Insights for boards, is available here.
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    The Toshiba case: Is it time to re-think our understanding of corporate governance?

    Accountability Decision Making Ethics Governance Leadership Performance
    These seemingly innocuous statements are telling: Fix the compliance and the problem will be fixed. Yet history (Olympus, HSBC, FIFA, amongst many others) shows otherwise. Neither the 'monitor and comply' conception of corporate governance, nor the 'advise and monitor' variant espoused by many corporate governance codes and directors' institutes have achieved the desired outcomes. Yet, many boards dogmatically pursue such conceptions. 
    The problem seems to be more fundamental. The contemporary conception of corporate governance seems to be flawed. Consider these statements, which highlight the problem:
    How many more failures will it take to realise that additional layers of regulation and compliance-oriented boards that operate as policemen don't actually add value? How many more failures will it take to acknowledge that a new understanding of corporate governance and appropriate board practice might be appropriate? Emerging research seems to suggest that when boards adopt a strategic orientation, and corporate governance is re-conceived as a value-creating mechanism, increased performance is not only possible—it is potentially sustainable. Please get in touch if you'd like to know more.
    The now very public overstatement of profits at Toshiba (approximately US$1.22bn over six years) has led to the downfall of the chief executive, Mr Hisao Tanaka (below), and seven other senior managers, all of whom were also board directors. The share price has taken a 25 per cent hit and the company's reputation is in tatters. What a mess. At least there is a modicum of accountability and remorse, something sadly lacking in many other cases including HSBC and Lombard Finance. 
    Thankfully, people have begun thinking about what needs to change. So far, the response has followed a predictable course: The possibility of appointing independent directors to replace the disgraced directors has been mooted. Will this structural response be enough to fix the problem? Maybe, but I'm not convinced. Compliance responses rarely lead to sustainable change. (The compelling case is Sarbanes–Oxley: created post-Enron, it did little to prevent the GFC.)