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    CEO quits: But what of the board?

    Governance Leadership Management Performance Societal Wellbeing
    News emerged today that Peter Campbell, CEO of Brackenridge, an intellectual disability facility, has resigned after five months of investigations and media scrutiny. Tragically, three residents died at the facility last year. There have been a series of complaints relating to safety as well.

    Clearly, there have been operational problems at Brackenridge—the review concluded that management had been distant and unresponsive. Notwithstanding this, I suspect there has been a failure of governance as well. Some important questions that need to be asked are:
    • What has the board been doing in the period leading to the review and since?
    • Did the board know about the "series of complaints" that precipitated the review? If so, why did it not investigate and act? And if not, why not?
    • Why has the chair chosen to defend the CEO, when clearly something was amiss?

    Superficially, the board appears to have been quite passive, to the extent it may have failed to discharge its legal and moral duties effectively. Notwithstanding the remedial plan now in place, the performance of the board needs to be reviewed. Weaknesses need to be identified and changes made, to improve the process of governance and quality of oversight at Brackenridge. The residents and their families deserve as much.
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    Straight talking trumps politically correct platitudes

    Readings Societal Wellbeing
    I read two straight talking articles this week that provided welcome relief from the rather superficial and politically correct reporting that seems to dominate newspapers like the Dominion Post these days:

    Thank you for Messrs Morgan, Guthrie and du Fresne for your forthright articles which, I suspect, reflect the views of the majority of New Zealanders. The time for the silent majority to push back on those self-indulgent folk who make an art-form of political correctness and living off the state is upon us.
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    A better world through a better Internet...really?

    Societal Wellbeing
    InternetNZ's new vision was published today (posted here). It left me totally flabbergasted and completely cold, to the point that I wondered whether the people responsible for it actually understand their own business. The "vision" is about as inspirational as "a better world through better roads", or better telecommunications or better power distribution for that matter.
    1. Providers of Internet networks need to realise that their role is the same as other utility provider. The man in the street wants a reliable "dial tone", that's all. He wants to be able to connect and do stuff, without worrying about the network that supports it all.
    2. A better Internet (roads, power, telecommunications) doesn't make for a better world. A better utility simply makes for a more connected world. A better world emerges from  morals, culture, ethics and other social phenomena. 

    Or have I missed something?
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    Are you an Advisor or a Consultant?

    Governance Leadership Management Performance Societal Wellbeing Teaching
    Periodically, I'm asked whether I'm an advisor or a consultant. For many years now, the answer I've provided has been 'advisor', often in an effort to avoid the stigma commonly associated with 'consultant'. (Consultants are the guys that borrow your watch to tell you the time, right?) However, as I've studied the English language more closely in the last couple of years, I've become much more comfortable with the term 'consultant', because it most accurately describes who I am and what I do. Let me explain.

    Generally speaking (although perhaps somewhat simplistically):
    • A consultant is a problem-solver, a simplifier. They are someone you call on to find a way forward, when you have a problem in need of a solution. At their best, consultants provide answers, or at least recommendations. They may or may not actually do the work to implement any solution you choose to pursue.
    • An advisor is a problem-definer. They are someone you call on as an impartial sounding board, to stimulate your thinking and to test ideas. At their best, advisors help survey the horizon and bring the future into focus. They may well recommend the names of others (consultants!) to help solve a problem once it is more clearly defined.

    While my priority as a pracademic is to think broadly about corporate governance and strategy in order to discover possibilities and pursue options, my clients are most interested in solutions to problems they face today – recommendations and answers – which fits nicely with my instinct to understand and solve problems.

    Now your turn: Are you an advisor or a consultant?
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    Gosh, is this a good governance practice?

    Governance Performance Societal Wellbeing
    Several months ago, Tony Marryatt left his job as CEO of Christchurch City Council, following a falling out with Mayor Bob Parker (now Sir Bob) and others. As part his severance deal, it appears that Marryatt agreed to resign also from the board of Civic Assurance (more correctly, of the parent, Local Government Insurance Corporation Limited), the Council's insurer (yes, that sounds like a conflict of interest to me as well). 

    Marryatt did fufill his commitment to resign from the LGIC board as required. However, he was reappointed immediately. Wow, this sounds like a highly unusual decision process, to say the least. Some serious questions need to be asked. Two that spring to mind are:
    • Why did Marryatt allow his name to be considered for reappointment, when many questions hung over his reputation and recent performance? (Marryatt's unhappy departure from the CEO role was not his first.)
    • Why did the LGIC appointment panel even consider Marryatt as a candidate, let alone immediately re-appoint him?

    The matter raises many more questions as well, mostly about the quality of governance practice and decision-making at LGIC. LGIC is owned by several local councils, a sector that has endured a few failures of governance in recent times. Transparency and accountability are crucial if the confidence of the public is to be maintained. Hopefully the LGIC board will put its collective ego (and political motivations?) to one side and commission an independent evaluation, of its appointment process and its overall performance. 
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    Signing off for 2013...

    Phd Research Societal Wellbeing
    Unless something compelling occurs in the next few days, this blog entry is likely to be my last for 2013. Christmas is upon us, so it is time to pause.

    Christmas can mean different things to different people. For some, the deep spiritual significance of remembering the birth of Jesus is almost palpable. For others, Christmas is an opportunity to buy and give gifts, to eat and to catch up with family and friends. Yet others enjoy Christmas because it is "time off"—a holiday. However you spend Christmas this year, may it be a joyful time for you.

    Overall, I've had a good year. The opportunity to travel (to speak in Australia, Asia and Europe), to meet some wonderful people, and to spend time pondering some pretty tough questions to do with my research, has been amazing. While there have been several times during the year when I've felt becalmed, it's not until I've stopped in the last few days and looked back that I've realised just how far I've travelled. I hope it's the same for you as you take stock this Christmas season. Thank you for your support and encouragement throughout the year, I appreciate it.