Everybody is talking about disruption. We’re in an agile economy. It’s easy to imagine we’re at constant risk of being made redundant by something newer and sexier. I’m here to say: stop. You can’t set out to be a disruptor. You can only look for ways to innovative, to challenge the status quo. I’m a strong believer that the more you focus on ‘disruption’ as your outcome, the more likely you are to be the disrupted.
When monitoring change management or major project delivery, too many NEDs are primarily focused on the budget and timetable. And they are important. But the number one priority MUST always be the benefit – “is there actually change happening ?” “Are we actually going to see the outcomes?”.
Some boards allow management to spread attention too thin and focus on too many little things. The right approach is bigger bets in fewer places.
Corporate governance is rather like hospitality staff: when it’s good, you barely notice it’s there, but when it fails it can completely ruin your night.
Most Australian company directors are very aware of the Centro case. The case has very clear implications for how directors deal with and review the company accounts. But I think the broader implications of this case are too frequently missed. More than just financial accounts, Justice Middleton’s judgment sets down how directors must deal with a range of complex issues that go to the survival of the company.