1. Emergence of BD in governance Flashcards
(25 cards)
There is a growing acknowledgement that human factors play a huge role in the functioning of governance, such as: (6)
Human capital
Talent management
Culture
Diversity
Resilience
Well-being
What has led to increasing questioning of the existing structural focus of CG practice
Corporate scandals
Define human capital
The sum of knowledge, skills and experience and other relevant workforce attributes that reside in an organisation’s workforce and drive productivity, performance and the achievement of strategic goals
One stakeholder group that has a growing interest in and is pushing for more effective human-capital reporting
Investors - eg. through ESG, employee engagement and satisfaction reporting
The human capital within which group of an organisation is the most important to an investor
The board
Which concept is said to focus on the ‘bench strength’ of an organisation?
Talent management
What is often seen as the most important business issue considered by senior execs?
Attracting and retaining talent = talent management
Define talent management
The systematic attraction, identification, development, engagement, retention and deployment of those individuals with high potential who are of particular value to an organisation
Very simple definition of culture
How things are done around here
What does ‘tone from the top’ mean re. culture?
Board culture must have an impact and influence on organisational culture - but to what extent?
What is a ‘Level 4’ leader per Jim Collins?
A heroic leader that swoops in (often appointed externally) to save an organisation - usually only a short term gain and neglect longer-term sustained value
What is a ‘Level 5’ leader per Jim Collins?
An aspirational leader who guides organisations from being good to sustainably great (often rise from within)
Modern shift in approach towards leadership
Shifting mindset away from heroic leaders.
Leaders should be able to articulate or embody ideas compellingly enough for others to choose to follow
Shift from ‘Me’ to ‘We’
How are CG codes evolving?
Movement in the appreciation of more human aspects of governance with Code revisions, such as more emphasis on and mention of culture and boardroom evaluation
Which other document shows the shift in mentality to more human aspects of governance?
Development and expansion of Guidance on Board Effectiveness
How has board research shifted?
Shifted from primary focus on structural factors to the attitudes and behaviours of directors and the board as a whole (human factors)
What are structural factors of board composition? (3)
Size
Composition
Leadership structure
What is the 11 Cs model of CG? (brief)
A broader, more modern model of CG that takes into account both structural and and behavioural factors
2 axes of 11 Cs model
Vertical = Technical (on paper) & behavioural (in practice)
Horizontal = Individual & board
4 areas of 11 Cs model & where they sit on axes of ‘technical & behavioural’ and ‘individual & board’
Technical & Individual = Board demographics
Technical & Board = Board structures
Behavioural & Individual = Board attributes
Behavioural & Board = Board dynamics
11 Cs model - 3 Cs within board demographics
do directors have CAPACITY, CAPABILITY, and are they well CONNECTED?
11 Cs model - 2 Cs within board structures
does board and committee’s have appropriate CONFIGURATION and are they COMPLIANT?
11 Cs model - 3 Cs within board attributes
do directors display COMPETENCE, COMMITMENT and CHARACTER?
11 Cs model - 3 Cs within board dynamics
does the board model a CULTURE of COHESION and CHALLENGE?
