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    Time to "come out"...

    Conferences Governance Performance Phd Readings Research
    Over the past few months, I have been quietly testing some of my doctoral research ideas with a few esteemed members of the academic community. I've also chatted with some practicing directors as well. The discussions have been incredibly valuable, because they have generated a lot of interest and feedback, all of which has enabled me to refine and adjust the research.

    On the strength of the feedback received, I have decided that it is time to "come out" as it were; to begin share my ideas with a wider community. To this end, I have submitted a paper abstract to ECMLG 2013. The abstract has just been accepted, so now I need to prepare a paper and start saving to get to Austria in November. How exciting!

    And the ideas that have generated the interest? Here's a peek: Much of the governance research to date has involved the statistical analysis of large data sets, resulting in correlations between observable variables and rich descriptions. However, no definitive theories to satisfactorily explain how Boards contribute to performance have been produced. Despite considerable effort, researchers appear to have reached an impasse. A new research agenda in required if progress is to be made—one that moves from the study of isolated variables (structure, composition, behaviours) to the holistic investigation of governance itself. My reading of philosophy has exposed critical realism (CR) as an interesting basis for a new agenda. CR rejects the common view that social phenomena (of which governance is an example) are a mass of separable events or attributes.

    When I re-read the literature through a CR lens, several discrete ideas that I've been pondering for some time started to come together into a cohesive picture. It seems that active engagement; an involvement in the development of strategy; and, the making of strategic decisions are somehow potentially significant causal mechanisms that explain how Boards actually contribute to business performance. Next step is data gathering and analysis. If validated, a new theory of governance which explains how Boards contribute to performance will hopefully emerge. Thankfully, I now have a philosophical framework to build upon. Yahoo!

    So, there you have it—my ideas out in the open. Sorry if this summary was tough to read and understand! If however, you are interested in governance matters, and particularly in governance research, and would like to chew these ideas through, please post a reply, or contact me directly.
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    The difference a fortnight makes...

    Conferences Phd Readings Research
    Three weeks ago I was getting a bit grumpy. I'd been battling the rather bureaucratic ethics process for several months and was starting to get worn down. This mandatory component of my doctoral research has taken far longer, and proved to be far more arduous, than expected. I couldn't understand what the problem was, and nor could my supervisors. The research fitted the low-risk criteria and approval was supposed to take two weeks. My supervisors agreed, however the ethics committee saw it differently. In addition, it seemed the committee had no sense of time, with 14 weeks elapsing since the original submission. Apart from continuing to do background reading while I waited, my doctoral research had stalled and I was left twiddling my thumbs.

    Then, on 4 April, the email I'd been waiting so long for arrived. The brief note said the research had been approved. Finally! This was just the news I needed, because on 6 April my wife and I were leaving for two weeks holiday, and I certainly didn't want to spend the time away moping about a process I had no control over. Safe in the knowledge that the research had been approved, I read three books (The Beekeeper's Lament, and the two mentioned here) and quite a few governance articles, and relaxed with my wife and her siblings.

    Looking back, the holiday came at just the right time. The time away enabled me to get my head back together, knowing that the roadblock I had been powerless to break through had been dealt with. Since getting home, two companies have agreed to participate in my research, with discussions underway with a third. Also, I have written an abstract for the ECMLG 2013 conference in Austria, attended a Board meeting, and moved a house-load of furniture ahead of new carpet being laid this week. It's great to be back on track, having cleared the ethics hurdle. What a difference one brief email—and a fortnight to reflect and recharge—makes!
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    Women on Boards: what is the real goal?

    Governance Management Performance Phd Research Strategy
    Interest in gender diversity in boardrooms and C-suites has been increasing over the last 12-18 months. In that time, many commentators have expounded the virtues of having women alongside men on Boards and in C-suites, in both the academic and practitioner literature. Lobby groups have been established and conferences convened, with good effect.

    While such efforts are laudable, the suggestion that the presence of women (on Boards) leads to increased company performance—as has been asserted in the rhetoric—is a big call. I agree that a relationship appears to exist, however I am yet to see any robust evidence that supports the assertion that the presence of women on boards per se improves company performance.

    Before you launch volleys in my direction, please read on. Governance is a complex, open system, and many inputs affect the operation of Boards and the outputs they produce. A single-minded focus on one structural variable—as has been the case with gender—is far too simplistic. Rather, attention needs to move away from bidding up the percentage of seats occupied by women (and expecting performance will reliably improve as a result), towards the holistic consideration of governance as a system, and to the causative factors that affect performance. Preliminary research efforts suggest that behavioural factors; high levels of engagement; vigorous debate; an involvement in the development of strategy; and, the making of strategic decisions, are far more likely casual mechanisms than gender or any other structural variable.

    So, to my question. What is the real objective of placing women on Boards? Participation or performance? If it's the latter (and I hope it is), then the focus needs to move beyond counting the number of women around the table, to discovering what Boards actually do as they go about their work, and to how that contributes to performance (or not). 
  • Published on

    Twelve months on: living the dream

    Governance Management Performance Phd Readings Societal Wellbeing Strategy
    Today is an auspicious day (well for me anyway). Musings was created twelve months ago today. At that time, I wanted (needed?) an outlet through which new ideas, thoughts and reflections could be expressed as I began to grapple with the demands of a PhD. 

    When I set out, the goal was entirely personal: Musings was a vehicle to share my thoughts and ideas about governance, strategy and societal wellbeing. I had no idea whether Musings would make it beyond a few months (or a few entries for that matter!), or whether anyone would read the entries. I wasn't really bothered either. To my surprise, my motivation to share ideas remains intact, somewhere between 50 and 200 visitors view the site each day (that number is slowly growing over time), and quite a few people have either posted comments or contacted me directly.

    Looking ahead, I plan to continue writing, because the process helps me refine my (doctoral) thoughts. The focus will probably narrow slightly (to strategy, decision-making and governance), as these topics start to dominate my thinking time (I've discovered doctoral research does that to you). One twist though: I'm going to move from writing for my sake, to trying to provide "value" to readers. To do this, I'd appreciate some feedback. Are there some topics or themes that you'd like to read about in the coming months? If so, please post a comment! In the meantime, postings will continue at the pace of 2-3 postings each fortnight.
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    ICMLG Conference: observations and insights

    Conferences Governance Phd Research Strategy
    Later this week—on Thu 7 and Fri 8 February—I will be speaking at the International Conference on Management, Leadership and Governance in Bangkok, Thailand. I'm looking forward to the challenge of speaking to a learned international audience, and to learning from other speakers and researchers throughout the two days.

    I plan to share session summaries, observations and insights here during the conference, so check back if you'd like to hear about current developments in the fields of management, leadership and governance.
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    Making sense of strategy

    Phd Research Strategy
    I can't remember how many times I've heard company leaders, directors and, to a lesser extent, owners say they don't formulate strategy nor have a strategic plan "because everything is changing so quickly, any plan would be out of date". Statements like this are akin to saying we are too busy running (the company) to look where we are going or plan where we might head. Is this smart or is this dumb? I think the latter.

    The problem with simply responding as the environment around you emerges—with not planning for the future—is that a competitor may do something that catches you completely off guard. To be caught flatfooted like this could spell disaster for your business.

    A reasonable middle ground between a long, highly detailed strategic plan that probably won't get read or actioned, and no plan at all, is a succinct plan. I'll call it a smart strategy. A smart strategy has several defining characteristics:
    • A smart strategy ties directly and explicitly to your company's core purpose. (If you don't have or can't describe your company's core purpose, sort that out first.)
    • A smart strategy is succinct—no more than 3–5 pages in length. It should contain the company's core purpose, the strategies to achieve the purpose, objective measures (so progress can be monitored) and high-level actions required to achieve the strategies.
    • A smart strategy takes a medium-term view. Five years is too long, too much can change (and probably will). Three is better. One year is too short (too tactical and operational).
    • A smart strategy is built with the input of several key groups of stakeholders. The Board and management and selected customers and selected industry experts should work together. No one person or one group has all the answers. However, by working together, robust debate can take place and strategic options can be subjected to vigorous challenge.
    • A smart strategy should not contain pages of SWOT tables, competitor positioning, product detail, organisational structure and names of key staff. This detail should be recorded elsewhere. It is input to the strategy, not the strategy itself.
    • A smart strategy is read and reviewed regularly. The Board and management should sit down, together, and review the strategy every six months—to identify what's changed and what changes are needed. Flexibility is crucial—particularly in fast-paced, high-change environments.

    I've seen this approach work well in many different organisations. If you'd like to explore how it might work for you, please contact me.