Vol 7 Issue 22 November 18 2009

  • Date:18 Nov 2009
  • Type:Boardroom Report

How to advertise board positions

Advertising for board candidates shows that a board is serious about diversity and getting the best calibre candidates possible, says Andrew Banks, managing director of Talent Partners BoardSEARCH, a director of Talent2 and a member of its nominations committee.

“Everybody understands that boards need greater diversity. There are a lot of capable people out there, but they don’t always feel that they are in the network – sometimes called the ‘old boy’s network’ – so advertising makes it a much more level playing field,” he says. “It also creates a better impression that a company is seeking the best director it can find.”

Simple processes to improve strategy execution

Boards should not assume that senior management understands or can articulate an organisation’s strategy, cautions Dr Jack Goodwin, an authority on business strategy who lectures on the Melbourne Business School MBA and Mt Eliza Executive Education programs.

He says: “A majority of my working time is spent teaching senior executives about the implementation of strategy. I discovered I had to establish the fundamentals of strategy before moving into execution. It’s quite astounding how many executives can’t answer the question: ‘What is strategy?’”

Annual budgets lacking in uncertain times

Boards need to look beyond traditional budgets as the cornerstone of business performance management and corporate governance, warns Tony Lucas, managing director of Ineum Consulting.

A recent survey conducted by Ineum found that the world has been changing too fast for most Australian companies to rely on annually based business performance management frameworks with budgets at their core.

Instead, organisations are increasingly using regularly updated forecasts to navigate through uncertain times. Some companies have adopted, and many more are also considering implementing, agile business performance management frameworks including “rolling” forecasts as a key element.

Risk management a wakeup call for directors

Risk management and the effect of economic conditions have shot up the list of top priorities for US directors over the past year, according to the latest Corporate Board Member magazine and PricewaterhouseCoopers What Directors Think Annual Board of Directors Survey.

Apart from profitability and shareholder value, risk management (39 per cent) was most often selected as the responsibility that should receive the most attention from directors.

Creating the Prince Charles effect

The global financial crisis (GFC) will have a lasting influence on the succession management strategies of small to medium-sized enterprises (SMEs) over the next decade.

According to PKF Chartered Accountants & Business Advisers’ second annual Business & Population Monitor, a large number of business owners are delaying their retirements due to underperforming superannuation and weakened retirement income prospects, largely as a result of the GFC.

 

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