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    Reading: On train wrecks and determinism

    Readings Societal Wellbeing
    The recent spate of train, bus and plane crashes in Western Europe, Canada and the US has, understandably, precipitated a series of articles by reporters, journalists and others. Some have reported the facts, while others have sensationalised the events, provided a human view, or speculated the causes of these disasters.

    Amongst the articles I have seen, one stood out because it raised some interesting bigger questions—of jumping to conclusions in some deterministic sense; of shoddy reporting; and, dare I say it, of cultural prejudices. I commend the article to you—perhaps to stimulate your mind as you take time out to enjoy a coffee—because it highlights the power of the written word to influence the way we perceive reality.
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    The value of long service on Boards: redux

    Governance Management Performance Societal Wellbeing
    A couple of weeks ago, I posted some thoughts about long service on Boards. My conclusion then was that ten to twelve years was a reasonable upper limit on service, beyond which the value of one's contribution starts to fall away.

    While the context of that post was corporate boards, the value question also needs to be asked of elected local body officials—Mayors and Councillors—for they hold a governance mandate. I raise this because an article published in the Dominion Post today highlighted the issues of long service and the need for 'fresh blood' in the Wellington City Council. The average length of service is twelve years. One Councillor has spent 27 years on Council. While some of the longer-serving Councillors were quick to defend their long stints, I couldn't help but get the feeling that occupancy in the role and advocacy of single issues (not to mention fees earned), had become more important than performance and public good in a number of cases (click here and here for examples).

    This latest example reinforces the opinion I expressed two weeks ago. Performance and contribution should always prevail over longevity and status. I hope the candidates and voters bear this in mind in the run-up to the local body elections this October.
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    Project management: why can't we get it right?

    Management Performance Research Societal Wellbeing Time Management
    Many years ago, when I was just a few years out of university, I heard an alarming statistic: that most projects (70% or more) were delivered late, cost more and provided less than originally planned. Some were never completed at all. I recall discussing this with my then colleagues and associates, because it seemed like an important problem that needed to be solved. My colleagues said that new systems and processes were being developed, and that this would alleviate the problem. 

    Fast forward a generation... Many systems and processes have been introduced—including MS-Project, PMP, Prince2, PMO and others—but have the expected gains been achieved? Sadly, they have not. As a recently published KPMG report indicates, most projects are still late, cost more, provide less or fail outright. On this evidence, little has changed. Much time and effort has been spent developing and promoting new systems—and millions of dollars are still being wasted.

    So, what's gone wrong, and why haven't things improved? In my view, most project management systems and processes have failed to deliver any material gains, because they do not address the vagaries of the most crucial factor: people. A more holistic approach is required. Rather than spend more effort refining systems and introducing yet more processes, attention needs to turn to the people factors. The research literature is replete with information to guide a new generation of people-focussed effort. However, until someone takes up the challenge—to deal with the motivational, behavioural and other psycho-social factors—I suspect the wastage will continue.
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    What corporate governance can learn from earthquakes

    Governance Management Performance Research Societal Wellbeing Strategy
    New Zealand endured a swarm of earthquakes earlier this week. The largest, at 6.5 on the Richter scale, caused damage and disruptions in Wellington. The CBD was 'shut down' for a day while damage was assessed and the area made safe. Thankfully, no one was seriously hurt. This morning, reports emerged that at least one heritage-listed building was too badly damaged for tenants to return. This highlights an interesting dilemma. We strive to preserve (and in some cases occupy) the past—hoping for the best—yet we need to plan for the future, lest unexpected events cause serious consequences.

    There are striking parallels between heritage buildings and corporate governance. Most directors know they are responsible for maximising company performance, yet most boards spend the majority of their time monitoring historical performance—looking backwards!
    Just as it is very difficult to drive safely if you spend most of your time looking through the rearview mirror, boards cannot hope to govern effectively if they spend the majority of their time reviewing reports and financial results. A glance to check progress should be sufficient. Directors need to take heed of this and change their focus, lest they inadvertently miss danger signs and run off the road as it were. Emerging research (including my current doctoral research, and an earlier project) suggests that time spent considering strategic options, developing strategy and making strategically important decisions—together with the executive—is time well spent.

    The earthquake event this week provided a wakeup call to building owners and occupiers in Wellington. An admiration of the past is not always the best option. Modern structures are needed to support modern society. Perhaps the experience gained through the earthquake can catalyse a change in the boardroom as well—from monitoring the past to planning for the future. Or am I hoping for too much?
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    A failure of corporate governance in local government

    Governance Management Performance Societal Wellbeing
    A tragedy unfolded in Christchurch today. The CEO of the City Council, Mr Tony Marryatt, was stood down by Mayor Bob Parker, due to ongoing problems with the issuing of building consents. The problems, which have been discussed in the public domain for some time, are due in part to the increased number of applications arising from the rebuild of Christchurch buildings post the devastating earthquakes of 2011 and 2012.

    Mayor Parker took action in because, in his own words, crucial information failed to reach the governance team. Gosh, this is serious. On the surface, the statement presents the Mayor as being decisive in response to a significant problem. However, under the surface, the statement exposes a problem relating to information flow and expectation. In the governance contexts that I am familiar with, the Board is responsible for ensuring it has all the information it needs to enable a decision to be made. Yet in this case, it appears that the Mayor (at least) expected information "to be provided".

    If the information the Mayor now describes as being crucial was not provided, then one of two things will have occurred. The CEO may have chosen not to provide it (as implied by the Mayor's comments), or the Council may have failed in its duty to ask the right questions to elicit the information. Either way, the failure of governance is laid bare. Rather than start by blaming the CEO (I'm not suggesting he is blameless), the Mayor and Councillors should reflect on their own conduct, to determine whether they have discharged their civic duty to the full extent expected under their warrants. If they have, then well and good. If not, then perhaps they too should stand down.
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    On making predictions about the future

    Phd Readings Research Societal Wellbeing
    I've been reading some back issues of The American Scholar recently, as part of my personal commitment to read widely and explore topics that I'd not normally think about. Reading widely is the side story of my quest to explain how Boards influence company performance. It provides a bit of balance to the humdrum of reading academic papers. 

    Some of the articles and books that I have read have really captured my attention and thought. One such article, originally published in the Spring 2010 issue of Scholar, summarised British philosopher A.C. Grayling's book Ideas that matter: The concepts that shape the 21st century. Grayling introduced 12 ideas that would, in his opinion, dominate public consciousness and debate during the century ahead. 

    This sounded remarkable, for the making of reliable predictions—especially longer-term predictions—is notoriously difficult. A reliance on empirical evidence can easily lead to erroneous conclusions—the White Swans Thesis is a famous case in point. Notwithstanding this, most, if not all, of Grayling's predictions are coming to pass, just three years after his thesis was published. What does this say about Grayling's ability to predict the future? Did he see something that most of us missed, or is Grayling's "long term view" actually much shorter than what readers might have assumed in reading the title? I suspect the answer lies somewhere in the middle. Call me a sceptic if you will, but I'm yet to see a robust case to suggest that the making of future predictions based on empirical historical evidence is anything more than intelligent guesswork.