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    ANZAM'13: CEO replacement decisions

    Conferences Governance Management Performance Phd Research Strategy
    The replacement of a poor performing CEO is an important but challenging task of boards. Young Kim's (University of New South Wales) summarised recent research into factors which contribute to the speed with which boards make CEO dismissal decisions. Her quantitative study, using data from 348 publicly-listed US firms, explored the relationship between external signals of declining performance (analyst downgrades), the board's interpretation of any signalled decline, and the time to any subsequent dismissal of the CEO. The results revealed that three factors seem to be significant to the speed with which the board makes any CEO dismissal decision. According to Kim, boards made dismissal decisions more quickly when:
    • The magnitude of performance drops were high/strong (gross failure to achieve performance targets)
    • The performance drop represented a large variation from a previously consistent pattern of performance
    • The performance drop was more extreme than prevailing industry patterns

    These results were encouraging. They confirmed my intuition that most boards tend to react only when large changes or variations from forecast occur, and that the response they turn to first is to dismiss the CEO. In so doing, the larger problem—of boards operating as the "ambulance at the base of the cliff"—is brought into stark relief. The continuing failure of boards to understand the operational context within which the company operates, and to monitor performance against strategy adequately, amazes me. Kim's study provides a useful launch pad for further research, perhaps using qualitative methodology, to understand the motivations of boards, and the changes needed to move boards into the role of the top of the cliff. I intend to chat with Kim about this, because I suspect there are synergies between her work and mine.
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    ANZAM'13: Streams of knowledge and learning

    Conferences Governance Management Performance Research Strategy
    The 27th Australian and New Zealand Academy of Management conference starts this morning, in Hobart, Australia. If the registration process and pack is any indication, the three day conference will be a well-run, high quality affair. This year, papers have been categorised into 15 subject streams:
    • Managing on the Edge
    • Critical Management Studies
    • Entrepreneurship, Small Business and Family Enterprise
    • Gender, Diversity and Indigeneity
    • Human Resource Management
    • International Management
    • Leadership and Governance
    • Management Education and Development
    • Marketing and Communication
    • Organisational Behaviour
    • Organisational Change and Development
    • Health, Public Sector and Not-for-profit
    • Strategic Management
    • Sustainability and Social Issues in Management
    • Technology, Innovation and Supply Chain Management

    With about 340 papers on the programme, and several plenary keynotes, the logistics exercise of paper and stream selection has not been without challenge. Today, I'll be concentrating my attention on two streams: Leadership and Governance, and Strategic Management. I will post reflections and comments as time and wi-fi access permits. 
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    ANZAM Conference: Observations and insights

    Conferences Governance Management Performance Research Strategy
    I will be attending the 27th Australian and New Zealand Academy of Management (ANZAM) Conference, in Hobart, Australia, next week. The three-day gathering, from Wed 4 to Fri 6 December, is the premier conference for management scholars and practitioners in this part of the world, with over 340 research papers and several keynote presentations on the programme! Papers have been grouped into 15 topic areas, with up to eight streams of papers being presented at any one time. Consequently, delegates have the challenging task of deciding what papers they want to hear—a not insignificant logistics exercise for sure.

    While I will not be presenting a paper this year, I will be sharing observations and insights during the conference, as I have done with other conferences. Please check back here later next week if you like to hear about the latest developments in the management field.
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    US trip: March 2014

    Conferences Governance Management Performance Strategy
    I will be visiting the USA in March, to present a paper at the International Conference on Management Leadership and Governance, at Babson College, Mass., on 20–21 March. Currently, I have up to three days available (Fri 14, Mon 17, Tue 18) for meetings in or near San Francisco or Boston (my travel route) to provide assistance with, or speak into, any corporate strategy or governance matter that may be of interest to you or your organisation.

    If you would like to take advantage of this, to have me speak, consult or provide some other contribution, please contact me to let me know how I can help.
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    Angel investments: Philanthropy, guile or gambling?

    Management Performance Strategy
    Angel investors are an interesting lot. They typically invest in start-up or early-stage companies, but such investments can be risky. Folklore suggests that, for every ten investments that an Angel makes, four will fail to provide any return, three will return the original investment, two will do reasonably well (2–5 times return), and one will do very well (5–10 times return). Sometimes this approach works (in terms of providing a positive overall return over a five to ten year period), and sometimes it doesn't.

    Without wishing to sound cynical in any way, what motivates an angel? Generally speaking, they are wealthy individuals who have worked hard to build a capital base. Why would they risk eroding their base by making risky investments? I suspect many Angels are adrenalin junkies—gamblers even—where the possibility (and thrill) of high returns are simply too great to ignore. However this is not the case for all Angels. Some see their investments as philanthropic donations, to assist the next generation of entrepreneurs. Others are well-informed, astute and shrewd. Regardless of their motivation, Angels provide a much-needed source of capital for entrepreneurs—to test their ideas and try to get them off the ground. Bill Gates, Rod Drury and Sam Morgan are all beneficiaries, and look at them now!
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    ECMLG'13: reflections from day 2

    Conferences Governance Management Performance Research Strategy
    The ECMLG conference is over again for another year. The second day saw another twenty papers (approximately) delivered, by some very capable scholars. As happened on the first day, most of the presentations on day 2 were well received, with some very good questions and discussions during question time.

    The following bullet points are my summary reflections, having just returned to my hotel room after an end-of-conference dinner with six other delegates:
    • The ACPI people ran a good conference. They do 18–20 conferences per year, so it would be relatively easy to just go through the motions. Not ACPI. They seem to genuinely care about delivering a great conference package.
    • The highlight of the whole conference—for me at least—was Vlado Dimovski's keynote on the second morning. 
    • Some presenters (including some who had written simply outstanding papers) suffered the indignity of addressing very small audiences. It would appear that a group of the delegates chose to bypass sessions in favour of tourist activities. While one can't compel delegates to attend, the organisers may want to look at ways to stimulate "fringe" delegates to remain engaged throughout.
    • The majority of the papers were delivered by European scholars, which is perhaps not surprising given the regional orientation of the conference. However, the topics of management leadership and governance have global reach and import, so it would have been nice to see more papers from North American and Asian scholars. I think it would have enriched the discussion.
    • As with other similar conferences, I met some amazing people, and was welcomed into the community of leadership and governance scholars with open arms. This included opportunities to test ideas and get some feedback to inform the next stages of my own research, which I deeply appreciated.

    Looking ahead to next year, the 10th European Conference on Management Leadership and Governance will be held in Zagreb, Croatia, in October 2014. I have already pencilled the conference in my diary, with a view to presenting my final thesis findings to the world.