The purpose of this paper is to share the findings of investigations into the competences that an effective director should have. It draws upon the findings of surveys of director…
Abstract
Purpose
The purpose of this paper is to share the findings of investigations into the competences that an effective director should have. It draws upon the findings of surveys of director development undertaken by the author and others and the author's experience of advising over 100 boards on director and board development.
Design/methodology/approach
The surveys examined have mainly involved UK directors and unitary boards. The situation might be different in other countries. It would be helpful if more studies were undertaken of director and board development in other contexts and involving different board structures, e.g. two tier or management and supervisory boards.
Findings
The findings suggest it is possible to identify, categorize and prioritize the competences that directors require to be more effective in their roles. Trainers and developers interested in addressing directorial competence requirements need to understand the distinction between direction and management, and between deficiencies that require individual and collective action, the boardroom context and concerns directors may themselves have about the assessment of their competences. There are certain questions they need to ask to assess the development requirement.
Practical implications
The competences of individual directors and those of the board as a whole should be periodically reviewed, particularly as the membership of a board changes and it faces new challenges. Trainers and developers can address this requirement by sensitively handling any concerns directors may have about the process used.
Originality/value
The paper highlights the nature of the competences required by a competent director and the challenge of assessing, categorizing, prioritizing and addressing competence deficiencies. The paper should be of value to those who support directors and boards and have an interest in improving the competence of directors and the effectiveness of boards.
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This article summarizes findings relating to the conduct of directors and boards from a continuing investigation into why some companies are so much more effective than others at…
Abstract
Purpose
This article summarizes findings relating to the conduct of directors and boards from a continuing investigation into why some companies are so much more effective than others at key activities such as business development, building relationships and creating and exploiting know‐how.
Design/methodology/approach
The research program ranks companies in terms of the outcomes they achieve in the areas examined and compares the most and least effective to isolate critical success factors and distinguish between successful/winning and unsuccessful/losing approaches.
Findings
The findings of the investigation suggest the performance of many companies depends primarily upon what their boards actually do and how their members behave rather than formal governance considerations such as a board's committee structure.
Practical implications
Effective boards adopt particular approaches and can behave very differently from their less successful peers, for example when communicating with various groups of stakeholders. Many boards would make a more significant contribution to the growth and development of their companies if they understood and adopted the approaches of more effective boards. A key element of good corporate governance is to achieve an appropriate balance between a number of critical factors, for example performance today and the capability to compete and win in the future.
Originality/value
In comparison with what could be achieved if more “winning approaches” were adopted many boards are failing to deliver and could do much better. Many appear to be rubber‐stamping rather than shaping things to come, picking over the past rather than creating the future.
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John McCormick, Kerry Barnett, Seyyed Babak Alavi and Geoffrey Newcombe
This paper develops a theoretical framework to guide future inquiry into board governance of independent schools.
Abstract
Purpose
This paper develops a theoretical framework to guide future inquiry into board governance of independent schools.
Design/methodology/approach
The authors' approach is to integrate literatures related to corporate and educational boards, motivation, leadership and group processes that are appropriate for conceptualizing independent school board governance processes.
Findings
Shows that the institutional role of an independent school board is likely to be quite different, and considerably more significant than the role of a board of a systemic school.
Originality/value
This paper develops an original theoretical framework that will provide a sound basis for investigation of an important but neglected aspect of educational administration in Australia.
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Kofi Mintah Oware, Gilbert Kwabena Amoako and Osman Babamu Halidu
This study examines the effect of gender board characteristics on the choice of sustainability report format in India. A sustainability report covers the environmental and social…
Abstract
Purpose
This study examines the effect of gender board characteristics on the choice of sustainability report format in India. A sustainability report covers the environmental and social impacts of firms. It is presented either as an integrated report with the rest of the financial reporting to stakeholders or a separate document (stand-alone) with the advantage of communicating better information.
Design/methodology/approach
The study uses an inclusive sample of 800 firm-year observations between 2010 and 2019. The study applies the binary probit and the instrumental variable probit regressions to analyse the data from the Indian Stock Exchange.
Findings
The authors find that female chief executive officers (CEOs) are more likely to choose stand-alone reports over integrated reporting. The authors also find that female CEOs with a duality role are insignificant in choosing between integrated reporting and stand-alone sustainability reporting. Furthermore, the study shows that gender board diversity (percentage of women over total board size) and females of two or less are insignificant. However, three or more females on the board significantly and positively affect stand-alone sustainability reporting. Similarly, independent female directors are more likely to choose stand-alone reporting over integrated reporting. Policymakers must encourage sensitive environmental firms to employ more female CEOs over male CEOs because female CEOs are more likely to adopt stand-alone sustainability reporting.
Originality/value
The authors’ study adds novelty to research because previous studies have only examined a female CEO and sustainability. However, this study is the first to investigate female CEOs' and female board members' choice of sustainability report format.
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Examines the disturbing facts as revealed by a programme of studiesof directors and boards. Directorial qualities and competences aredistinct from the skills that are sought in…
Abstract
Examines the disturbing facts as revealed by a programme of studies of directors and boards. Directorial qualities and competences are distinct from the skills that are sought in managers. Nine out of ten directors received no formal preparation for their boardroom appointments; there is little consensus concerning the contribution expected from members of boards; only one in eight boards operates any form of periodic and formal appraisal of personal effectiveness in the boardroom; and three‐quarters of chairmen believe the effectiveness of their companies′ boards could be improved. Examines the role of the board, what makes a “good” director, and what should be done to improve the competence of company directors and the effectiveness of boards. Argues that the distinction between direction and management needs to be better understood, and that the chairman should take responsibility for director competence and board effectiveness. All directors should be made aware of their duties and responsibilities, and the boardroom contributions of individual directors should be assessed annually by the chairman. The board should examine its own effectiveness at least once a year.
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The article is intended to share findings from an ongoing investigation undertaken by questionnaire survey, interview and in‐company observation into the leadership of performance…
Abstract
Purpose
The article is intended to share findings from an ongoing investigation undertaken by questionnaire survey, interview and in‐company observation into the leadership of performance improvement and corporate transformation.
Design/methodology/approach
The article examines and compares the approaches and behaviours of winning and losing boards.
Findings
Directors and boards of companies that succeed at managing change, competing and winning exhibit very different approaches
Practical implications
Trainers and developers need to understand the differing approaches of the boards of successful and struggling companies and encourage and help directors, both individually and collectively, to learn from, emulate and develop the approaches and behaviours of those boards that are successful in managing change, competing and winning.
Originality/value
The article highlights behaviours and approaches that trainers and developers need to encourage if directors and boards are to become more effective at managing change, competing and winning.
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Dale L. Flesher, William D. Samson and Gary John Previts
Evidence of audit committee activity in the formative years of the Baltimore & Ohio (B&O) Railroad indicates that control and reporting activity developed long before the…
Abstract
Evidence of audit committee activity in the formative years of the Baltimore & Ohio (B&O) Railroad indicates that control and reporting activity developed long before the existence of regulatory mandate or the external auditing function. This is the earliest example of such an organized and continuing activity in American business history. With no previous business experience to model this enterprise, the organizers of the corporation put in place an audit committee of directors as a control device to safeguard assets and ensure proper handling of cash receipts and disbursements. Research into primary materials establishes that the committee not only performed regular routine audits of the “treasurer’s report,” but also identified and addressed critical problems of control and payment weaknesses. The discovery of the function of value‐for‐money (VFM) auditing by a committee of directors establishes historical context for today’s audit process and audit committee. Because the B&O was such an important entity, it influenced other railroads; and the railroad industry, in turn, greatly influenced the development of modern American businesses during the Industrial Revolution.
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When Condor and Neckermann (C&N) acquired Thomas Cook in early 2001, it saw an exciting opportunity to expand its international business and roll out the Thomas Cook brand across…
Abstract
When Condor and Neckermann (C&N) acquired Thomas Cook in early 2001, it saw an exciting opportunity to expand its international business and roll out the Thomas Cook brand across the company globally. Thomas Cook’s successful past spans 160 years and has given rise to a rich pioneering heritage, so any rebranding could not be only a paint job, it had to be meaningful.
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In some respects traditional leadership is not working. The two‐part paper summarises key findings of a five‐year investigation into quicker and more affordable routes to creating…
Abstract
Purpose
In some respects traditional leadership is not working. The two‐part paper summarises key findings of a five‐year investigation into quicker and more affordable routes to creating high performance organisations. The purpose of this paper is to identify some aspects of the “new leadership” that is required and how the strategic adoption of performance support can facilitate the changes required and deliver multiple objectives. This second part aims to consider implementation requirements.
Design/methodology/approach
A programme of critical success factor, “issue” and other surveys was complemented with a five year evaluation of more recent case studies to understand early adoptions of performance support and to assess their results and implications. The applications examined were discussed with the relevant technical architect and the results obtained corroborated with commissioner/user performance data and/or documented assessments/reactions.
Findings
“New leadership” is less about “top‐down” leading and more about providing “bottom‐up” support, particularly of those who contribute to key corporate objectives. It requires a different balance and focus in a number of areas and can be facilitated by the strategic adoption of performance support, which can deliver multiple benefits and offers a quicker and more affordable route to the high performance organisation.
Research limitations/implications
Further investigation is required of the implications of the findings for people and organisations.
Practical implications
A cheaper and more cost‐effective alternative to expensive, lengthy and disruptive change and transformation programmes has been demonstrated which can deliver essential elements of “new leadership”, boost performance, cut costs, reduce risks and stress, ensure compliance and generate high returns on investment. Despite its advantages the more widespread adoption of “new leadership” and performance support might require a re‐energising of corporate boards.
Social implications
There is potential for making difficult jobs easier and less stressful for many people.
Originality/value
The paper summarises the main findings of an investigation that has identified a requirement for “new leadership” and an approach, which, if strategically adopted, can facilitate its introduction. Important aspects of the shift of emphasis and focus required by “new leadership” are identified, along with the central contribution that performance support can make to its beneficial adoption.
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‘Countrymindedness’ is a resonant but perhaps manufactured term, given wide currency in a 1985 article by political scientist and historian Don Aitkin in the Annual, Australian…
Abstract
‘Countrymindedness’ is a resonant but perhaps manufactured term, given wide currency in a 1985 article by political scientist and historian Don Aitkin in the Annual, Australian Cultural History. Political ideology was his focus, as he charted the rise and fall ‐ from the late nineteenth century to around the 1970s ‐ of some ideological preconceptions of the Australian Country Party. These were physiocratic, populist, and decentralist ‐ physiocratic meaning, broadly, the rural way is best. Aitkin claimed the word was used in Country Party circles in the 1920s and 1930s, but gave no examples. Since the word is in no dictionary of Australian usage, or the Oxford Dictionary, coinage may be more recent. No matter. Countrymindedness is a richly evocative word, useful in analysing rural populism during the last Australian century. I suggest it can usefully be extended to analyzing aspects of the inner history of Euro‐settlement in recent centuries.