Filter the Noise to Find Your Pathway

In November 2016, I received the grades for my final MBA subject, a Master’s Degree research paper into Corporate Governance entitled: A review of Directors liability for Australian based company officers: a novice Directors induction. The paper examined what the learning institute described as;

   ” This project has identified an interesting gap in the corporate governance literature. The collection and triangulation of interview, survey and secondary data could add in-depth, critical and reflective knowledge through analysis and discussion to the corporate governance literature”.

I’ve spent the last four months scrutinising the landscape in which I was entrenched for the past 3 years. My directorial journey was a solo one into a dark and unknown abyss. Researching the paper, I discovered significant knowledge and application gaps in Governance within Corporate Australia. It was graded a High Distinction.

This led to my decision to continue my learning and share the insights with novice and aspiring directors; to save them from wandering down the dark path I had been facing and make sure the fork they choose is to enlightenment. Ethical Leadership and Compliance Australia Pty Ltd was incorporated. There is a modest pathway to gaining approval as a Registered Training Organisation, but as President Roosevelt observed, anything truly worthwhile requires effort, pain and difficulty.

There are many in my personal and professional network that helped me along the way. My wife and family were extremely supportive.

For those who have helped a guy from country NSW, who left school at 14 to work as an engraver, served an apprenticeship and ended up with a MBA … Thank you!

‘A Change Is Gonna Come’​ And Other Lessons From History

The lyrics from Sam Cookes’ 1964 hit seem more poignantly relevant than ever.

First, we faced Brexit, where Britons voted to be rid of a system where back room deals and political favours were prioritised over sound policy and foresight. Next, a TV realty ‘star’ who’s qualifications include an endless stream of bankruptcies, bullying, sexist and racists rants, climate change denial and having paper wealth in the billions – yet paying no tax, gets elected as President of the USA … because apparently, he represents the working class American.

‘One day, the house of cards will collapse’ says Euro creator and now vocal opponent, Otmar Issing. Italy has voted overwhelmingly against the European establishment, which could determine its fate in the EU. In 2017 both France and Germany head to the polls. ‘The only constant is change’ Heraclitus mused and 600 years later his neighbour from across the Aegean, Pliny the elder stated ‘The only certainty is uncertainty’. So, the one thing we know for sure is that ‘change is gonna come’.

GREAT!

Oxfam stated in 2016 that the richest 1% now has as much wealth as the rest of the world combined. Most of this wealth is attained and maintained unethically. Maintained in that within Australia alone, tax loopholes allow 30% of big business to pay no corporate tax. (ATO 2016)

Qantas, Virgin Australia, Lend Lease, Glencorp and many other brands we see and support daily pay zero tax, yet, you and I are charged upward to 45 cents in the dollar. If we ran our personal finances the way these businesses are allowed to operate, we would have our debts reigned in and made bankrupt within a heartbeat. So, change must come.

The 1% are out of control and are in an ethical and moral race to the bottom. We look at global automobile giants whose only goal is to become number one and will lie, cheat and deceive to attain that goal. FIFA squandered millions, maybe billions so that a ‘gentlemen’s’ club of elite remained in control of ‘the people’s game’. Toshiba, a once proud Japanese icon, falsified earnings income by 4 Billion dollars and a spoiled presumptuous ‘entrepreneur’ named Martin Shkreli thought it was good business to buy a company and raise the price of its life saving drug by 5000%. That was just 2015/2016. So, change must come.

People make change. Not products. A product may change your life, but it is people who dreamed it, prototyped it, developed it, marketed it and sold it. It’s your choice to buy into it or to leave it alone. If we really want change, we must start to act and behave differently.

I ran a multi million dollar company and grew it beyond all expectations over a 6-year period … nearly losing my soul in the process. When a leader asks you to do something that ‘doesn’t feel right’ or questions systems put in place to protect employee’s rights … you know something is not right. But, only you can make a change if you want to. Sure, it will be tough, but as Roosevelt observed, anything truly worthwhile requires effort, pain and difficulty.

Choose and act wisely. Think about what you support, who you work for and what your purpose in life is. Mine is to teach and create awareness; to save someone from wandering down the dark path I was facing and making sure the fork they choose is to enlightenment. One final, favourite, quote – ‘Man cannot discover new oceans unless he has the courage to lose sight of the shore’ – Andre Gide.

So, You Want to Join a Board?

In the past 3-5 years, I have seen huge growth in the interest of people wanting to join boards, both as non-executive and executive directors. There is only one relevant question. WHY?

To discover the ‘Why’ each aspiring director should exercise the simple ‘5 whys’ of root cause analysis. Start by asking yourself ‘Why do I want to be a director of a company I (now) know very little of?’ Then, ask why? to that answer and so on…5 times. This is basic due diligence and yet I regularly see people with questionable skills, experience and motivation pursuing a career that could be costly…

Is your hunger for risk so ravenous that you would consider losing your reputation, house or everything you have worked for to gain another title or notch on your CV? What is your risk tolerance? Are you one who lies awake at night worried about cashflow, reputation, your next source of business?

Let me put you out of your misery. A directorship is not for you.

If your motivation is to provide change, well good luck with that too. You are not the decision maker. You are one of many who will provide a view to an issue, challenge or opportunity.

Have you ever been in a meeting where you have heard a manager or colleague speak and thought to yourself; “what are they on?” or, ‘you must be kidding?’… welcome to a board.

I’m more than qualified to comment having answered directly to boards and having been a MD of a multinational company. Most of my colleagues and peers ‘suffer’interacting with their boards. So, I ask again…why?

It is well documented that the risk versus the reward for a board role is disproportionately high. Would I choose to be a director as ‘part’ of the board of a large private or NFP company again? Quite simply, NO! Not without conducting thorough due diligence and THEN appeasing my own risk appetite. Start by asking employees, former directors and customers of the company you are interested in joining.

It is not a title. It is complete and unforgiving accountability.

Your duty as a director is two-fold. A director is entrusted to undertake their duties legally and ethically to ensure the best outcome for the company and its shareholders.

Think about that and then reference the daily news; Ardent Leisure and the Dreamworld tragedy, the A$6 M Reckitt Benckiser Nurofen deception fine, the conflict of interest that the big 4 banks acting as custodians for superannuation and let’s not mention VW…

All of these decisions were agreed upon and brought forward by members of a board.

I have 30 years’ experience in seeing companies putting profits before people. Please don’t think that the Not for Profit sector is your salvation either. I’ve been dismissed by a NFP board for ‘non-performance’– just 60 days after receiving a salary increase for ‘commitment and productivity’…approved by that same board. (The only time I have ever been dismissed.)

It’s ALL about politics and as the saying goes: ‘If you don’t do Politics, Politics will do you.

If you can clearly and confidently state that your contribution will bring about positive change, you must understand that you will, at times, (most times) be a puppet. You must be comfortable with that. You also must be able to look someone in the eye, make a statement whilst withholding the underlying motivation for that statement. If that sits well, then Welcome to directorship! You can now sleep easy.

 

Far from being a corporate puppet, I lead from the front and not the top. I have transformed businesses to exceed sales and profit expectations through constantly challenging entrenched and redundant corporate thinking.

My Master’s Degree research paper into Corporate Governance, examined the existing support and induction methodology for company directors. It was afforded the grade of High Distinction.

I work with novice and aspiring directors to provide a pathway to compliance.