Standard Cabinet Business Unit
Getting Good Advice
David Irving
August 2013
What Would You Do Confronted With These
Situations?
• You don’t know whether you want to keep owning and managing the business
• You have a long standing major disagreement with fellow shareholders which is bleeding you and the business
• Your key staff are telling you your remuneration practices are out of date
• The business is overwhelmed with growth opportunities
• You cannot think you way through a major customer / competitor strategic issue
• You cannot get your top team working effectively
Wisdom
“The quality of being wise; knowledge, and the capacity to make use of it; knowledge of the best ends and the best means, discernment and judgment; discretion; sagacity; skill; dexterity.” Webster 1913.
“Knowledge is proud that he has learned so much”
“Wisdom is humble that he knows no more”
The Dynamic Board Framework
Board Capability
Right Mindset
Right Role
Right Agenda
Right People
What is required, are we resourced, continuous evolution.
Passive board, certifying board, engaging board, intervening board or operating board?
Differentiated yet aligned with owner and managers.
Competent, for tomorrow, their own team.
Right Chairperson Deep understanding of business, productive CEO and stakeholder relationships, enabling leadership.
Right Information Distilled, relevant, enabling knowledge.
Right Culture Knows its place in high performance company.
Interface between Board and Management
Governance
Interface
• Boards responsible for strategy, resourcing strategy, and monitoring performance
• Board meeting frequency
• Board information content
• Business planning
• Organisation design and senior management remuneration
• Chairman / CEO relationship
• Execution of strategy
• Senior Management Team
• Management meeting type and frequency
Management
Appendix II
Eight Behaviours Of An Exceptional Chairman
1. Understanding the business
2. Preparing for the future
3. Building and getting the best from the board
4. Working with the CEO
5. Providing air cover
6. Taking tough decisions
7. Inspiring and energising leadership
8. Communicating with stakeholders
Source: What Makes An Exceptional Chairman? Required Qualities For Challenging Times
A Research Report by Alvarez & Marsal
Succession Model
From Transition
Owner Manager Founder
CEO
To
Governance
Founder
CEO
Senior Team
In Conclusion
1. Don’t ever under resource a key job. GP’s don’t do surgery.
2. Match the remuneration to the task.
3. Good partners are better than frequent experts.
4. Don’t hesitate to ask busy people.
5. Don’t start off by asking them to be a director.
6. Remember directors are legally liable.
7. Recognise you don’t know what you don’t know.
8. Wisdom is the single word that expresses what you need.
