adding value through good governance
DESCRIPTION
A 5 minute talk on how company directors add value to their boards and companies. A presentation given by Dave Moskovitz at the inaugural meeting of Springboard Wellington in November 2009.TRANSCRIPT
Adding Value through
Good Governance
Dave MoskovitzChairman, WebFund Limited
[email protected] 027 220 2202
Blog: nzangels.com
Agenda
How boards create value
Organisational lifecycle
The attributes of good boards and their directors
How boards create value
Setting and monitoring strategy
Big picture thinking – working “on” rather than “in” the business
Setting realistic, measurable targets that answer the question: “Has our strategy been successful?”
Supporting the CEO to execute, and holding the CEO accountable for implementing the strategy
◦ Setting and monitoring strategy
How boards create value
Stakeholder management
THE BOARD IS ULTIMATELY ACCOUNTABLE
The CEO is responsible and accountable for running the company and managing its employees
Shareholders need love, but don't run the company
Potential investors can help enable the company to execute its strategy
◦ Setting and monitoring strategy
How boards create value
Financial oversight Understand how the company's finances relate to
its operations Ensure company's finances are accurately reported Avoid “reckless trading”
Compliance Ensure the company is meeting its legal obligations
◦ Setting and monitoring strategy
Organisational Lifecycle
Horses for courses Infant – Seed Toddler - Startup Adolescent - Expansion Adult – Stable Old age – Redefinition / Wind down
◦ Setting and monitoring strategy
Good Boards Offer
Mentoring / coaching Diverse experience Insight into areas of opportunity and risk Access to networks Pitfall avoidance Challenging assumptions
Good directors offer
Cool head: Fearlessness, unflappability, analytical & critical thinking
Hard nose: Ability to confront when necessary, dogged determination, strong negotiating skills
Warm heart: Empathy, creativity, generosity Leadership Broad experience
Good directors
Always act:
In the best interests of the company
With proper purpose
Avoiding reckless trading
Some ideas for future sessions
How do I find / become an independent director?
Basic board finances
The anatomy of a shareholder agreement
Chairing a high-growth board
Managing your CEO
Conflicts of interest
Strategy development and monitoring – when is it time to change?
Managing your risk as a director
Cultivating diversity on your board
Working with other groups eg shareholder assn
Running AGMs
NFP issues