WORLD CLASS CHAIRMEN

1

• WORLD CLASS CHAIRMEN
• Andrew Kakabadse
• Professor of International Management Development
• Cranfield School of Management

2
Leadership

• EXECUTIVE DYNAMICS
• 17 countries, 12,000 organisations
• The greater the problem, the greater the pain
• The greater the pain, the greater the insight
• The greater the insight, the greater the
  paralysis
• 35 of top teams no shared vision
• 66 of top teams inhibited dialogue
• Continuous interfacing tensions

3
Board Dynamics UK/Ireland

• Selection criteria for NEDs unclear (UK)
• Clear Criteria (Ireland)
• Few penetrating insights concerning company
  (NEDs)
• Considerable insights (Ireland)
• NEDs viewed as irrelevant (UK)
• Contributing (Ireland)
• Approach to governance/corporate reputation
  varies
• Fear of legal exposure

4
Board Dynamics (USA)

• Inhibition/defensiveness/poor dialogue, even for
  outstanding companies
• Defensiveness
• Limited influence unless known/respected
• Discouraged from talking to staff/management
• Limited use of NED/External Director
  capabilities, except for outstanding companies

5
Board Dynamics (USA)

• Strategy/Board dynamics/role driven by
  idiosyncratic logic of CEO/President/Chairman
• Dismissive of CSR greater risk exposure, except
  for outstanding companies
• Fear of legal culpability
• Sarbanes Oxley
• Gone too far
• May induce more corruption
• Governance becomes box ticking

6
Board/Governance Best Practice

• CHAIRMAN
• Determine boundaries
• Chairman/CEO (UK / Ireland / Australia)
• Board/Management
• CEO/Chair roles (USA)
• Shared sense making
• Penetrative analysis
• Influence
• Live role model
• Promote development
• Consider what is a World Class Board
• Rise and Rise of Chairman