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    Research update: closing in on the prize

    "So, how's the research going?"
    "Pretty well, thank you for asking."

    I've been party to this brief exchange, or a close variant of it, most weeks this year. It's usually originated by someone who knows me; or someone who has an interest in what I'm doing; or, someone who finds it odd that I stopped working a couple of years ago to investigate how boards influence performance. My response has typically been quite private—as above—without wanting to appear to be rude. That someone might actually be interested enough to listen to me wax on for a few minutes is an assumption I have wished to avoid, However, with the project now in its final couple of months and the write-up well underway, and seemingly increasing levels of interest in the findings starting to come from business people and academics, I've decided to write a weekly update from here on in. Please let me know if they are helpful or not. If you have a specific question, please post a comment below or send a note, and I will do my best to provide an answer. My goal, of submitting the completed thesis by Christmas Day, remains intact. It'll be tight—because work has an innate capacity to expand to fill the time available—but doable. 

    The thesis will be six chapters long. Two of the three longest chapters (Literature Review and Research Methodology) have been out for review for a couple of weeks now. Last night, I finished the third of the 'big three' chapters (Data and Initial Analysis, the chapter that contains a summary of all of the data that has been collected and starts to makes sense of it). The first drafts of the Introduction and Conclusion chapters are completed as well. The satisfaction of having broken the back of the thesis writeup was palpable. The remaining chapter is entitled Discussion and Theory Development. It will be somewhat shorter than the big three and, as the title implies, it will hopefully answer the question that I set out to address. So, it needs careful thought. Thankfully, I have a fairly good sense of what needs to be written, although the proof of whether I'm on track will come as the week progresses and the mixed bag of notes and sentence fragments congeal (or not!).

    However, there is hardly a cloud in the sky or a breath of wind in the air this morning. The sun is streaming in the window and a tui is happily calling from a nearby tree. So, I have decided to take the day off. My wife and I are going to visit a famous rhododendron and azalea garden, in our old car, with a picnic. The joys of Spring! No doubt we will chat about the real sense I have, of now closing in on the prize and of handing over the final draft so it can be examined. But one must not get ahead of themselves, for there is much to be written yet. 

    I'll keep you informed.
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    CEO pay: one in four think that time is more important the money

    The rather sensitive matter of CEO pay has raised its head (again) today. Stories of ever-larger packages have appeared in the news columns with metronomic regularity in recent years. However, change may be on the horizon. According to the findings of a new survey conducted by Strategic Pay, one in four CEOs would take a pay cut if offered other benefits, including more time with family.

    Clearly, some CEOs think that time is more important than money; that there is more to life than work.

    These findings suggest that the runaway train that is CEO pay may not be boundless after all, although some CEOs will dispute them, no doubt. However, knowledge of these results creates an opportunity for boards to initiate a much needed conversation—for the health of the CEO and the good of the company.
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    Learning to enjoy the eye of the storm

    In seven days time, I expect to be at least 35,000ft above the north-west reaches of the UK, nearing the end of a journey from Auckland, New Zealand to London, England. The reason for my trip? I'm booked to speak at the British Academy of Management conference in Belfast. While in the UK, I'll also attend some meetings, and take a few days off with my wife who is travelling with me. The trip involves 40,000km of air travel; 24 hours of timezone change; and, a season change (from late winter to late summer and back).

    On the surface, it'll be a demanding trip. However, the trip may actually be a blessing in disguise: a time of relative calm sandwiched between two even busier periods. Here's what I've been up to in recent weeks:
    • Commenced a formal board evaluation (18-member board with many challenges and tensions)
    • Written a manuscript for a highly regarded journal (now being peer-reviewed)
    • Written an article for an online magazine
    • Delivered a couple of professional development courses
    • Facilitated three strategy development workshops
    • Reviewed the Company Directors Course material for the Institute of Directors 
    • Attended two board meetings
    • Added about 7500 words to my doctoral thesis

    A new list of actions to be completed before Christmas awaits my attention when I get home:
    • Complete the data analysis and thesis write-up (my stated goal is to submit the doctoral thesis for examination before Christmas)
    • Present the board evaluation report (the 18-member board)
    • Deliver three professional development courses
    • Attend a professional development course
    • Facilitate three strategy development workshops
    • Attend four board meetings

    Measured against these lists, the seemingly hectic trip, to fulfil a speaking engagement and attend meetings on the other side of the planet, might not be so demanding after all. In fact, the trip may be analogous to the eye of storm. My point? The here-and-now can seem pretty hectic. Long-distance travel can be pretty demanding. However, if one steps back and looks at the big picture, periods of relative calm become visible amongst the busyness. Seek them out and enjoy them, for the next period of busyness lies in wait. 
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    We all get stale. How do you freshen up?

    One of the big challenges of tackling a major project relates to vitality. When we set out to tackle something new, be it a hobby, a job, a long walk, a marriage or something other 'project'; we generally start with much hope and anticipation. However, over time, we can get a little stale, as the rigours and routines of the daily grind take precedence in our mind over the goal that we set out to achieve. Sound familiar?

    Regular readers will know that I've been working on a major research project in early 2012. The good news is that the end is now in sight. However, there is still much to do and the risk of getting stale is never far away. One of the techniques that I have used to keep fresh is to change the focus temporarily—by helping others solve gnarly real-world problems. Today for example, I had the privilege of working with a group of directors and a manager—helping them wrestle with their business, to try to get some clarity around core purpose and strategic priorities. The Chair's closing comment, "the morning was incredibly worthwhile", suggested that progress had been made. Next week, I have an independent review of another board to do. That board has some interesting challenges around focus; role; and, interaction with the Chief Executive.

    Small 'side' projects keep me mentally fresh. They get me out of the office and away from the routine of the research. Sitting with real people, and helping them wrestle with real problems, is so invigorating. Crucially, when I return to the research, I feel sharper and seem to work more effectively. How do you freshen up?
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    Learning to say 'no'

    Image description
    I have just been asked to consider a nomination to become deputy chair of the New Zealand Vintage Car Club (Wellington Branch). I've been interested in old cars for as long as I can remember—particularly Lancia, Alfa Romeo and Triumph cars from the 1950s and 1960s. (In case you are wondering, the car in the picture is our current indulgence.) We joined the VCC a few years ago, to meet others with similar interests beyond the marques we are most interested in. Now this unexpected approach has come.

    While it's an honour to be asked to contribute to the leadership of an organisation, a most important consideration is whether one has the expertise and the time to do the job well. Sometimes the best response is to decline the invitation, despite the confidence others have in you, and the organisation and role being in one's sweet spot.

    The challenge for us all is to ensure that we make excellent contributions in whatever we take on. The VCC role includes two meetings a month (committee meeting plus monthly branch meeting) and attendance at various events. It would be fun, but it would also be a diversion. In my case, the priority for the year is to complete the doctorate. Other important contributory tasks include writing and presenting papers at international conferences, facilitating professional development courses for the IoD, a tiny amount of consulting and keeping (somewhat) fit. Something would have to go if I took on the VCC role, but it can't be anything on my priority list, thus my decision. Do you face similar dilemmas?
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    How much time do you spend in your board role?

    The National Association of Corporate Directors (NACD) has just published its 2013–2014 Public Company Governance Survey. The news release and several top-line findings are available here. A copy of the full survey report is available from the NACD bookstore.

    The report makes for interesting reading. One metric that caught my attention was the average amount of time that board members commit to their work. Respondents claimed their annual time commitment was 235 hours per board. Using an 8-hour day as the basis, this means that directors of public companies in America commit, on average, 2.5 days per month to each board of which they are a director. Does this sound like a lot of time, or not much? By way of comparison, most boards of public companies in New Zealand meet ten or eleven times per year, and board meetings typically last between four and seven hours. Even taking the generous end of these ranges, and doubling the figure to account for committee work and pre-reading, the figure for a New Zealand director is about 154 hours, or roughly two-thirds of the American figure.

    What amount of time is reasonable? Clearly, boards and companies are complex, socially dynamic, and subject to the vagaries of markets and many internal and external factors, so every situation is different. However, I would have thought that a figure closer to 400–450 hours per year would be necessary, if a director is to understand the business of the business well (this being a prerequisite to making an effective contribution to the development of strategy and the making of informed strategic decisions), and monitor performance well. Could the lower levels of commitment that seem to be typical be material to the various failures of governance that have come to light in recent years?