Take Me To Your Board

Volkswagen, the German vehicle manufacturer, took a huge risk in 2014 and suffered as a consequence. Following a ruling from the Environmental Protection Agency, there was a whole-of-industry push to sell low emission diesel vehicles in the US. VW's vehicles initially impressed environmental regulators but there was a catch. The cars were fitted with software that could favourably cheat the emissions test. It was known as a 'defeat device' but it didn't fool everyone. Eventually, the ruse was uncovered and the fallout was severe with the company recording its first quarterly loss in 15 years of 2.5 billion euros.

In this episode, Cameron and Bridget look into this scandal from a risk management point of view with the help of special guest Alicia Leis, Partner (Audit, Assurance & Advisory) at WLF Accounting & Advisory. Risk, as per AICD Not-for-profit Governance Principle 5: Risk Management, is defined as the effect of uncertainty on objectives. For many board members, risk management is a rather tedious topic that they'd rather not deal with. But for the savvy board member, it's necessary to know how much risk the organisation is happy to accept. This is a fascinating discussion around one of the worlds most infamous corporate scandals and is a must-listen for any current or prospective board member.

Episode Guide:

• 0:32 — Overview of Principle 5: Risk Management
• 7:01 — Interview with Alicia Leis around the importance of evaluating risk around the board table, both before and after the fact
• 35:12 — Wrap-up

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Could the ongoing Theranos saga have been avoided with a more effective board? For a board to be effective it must take a thoughtful, disciplined and professional approach to its work. It can be quantified through forward planning, efficient operation of meetings and performance assessments.

In this episode, Bridget and Cameron unpack the role AICD Not-for-profit Governance Principle 4: Board Effectiveness played in the case of Theranos, the Silicon Valley start-up that wasn't quite what it seemed. The company touted a breakthrough in health technology through the use of small automated devices and in 2014 was valued at around $10 billion. However, the technology was not what founder Elizabeth Holmes claimed and she was charged with fraud in 2018. Highly experienced board member and Chair of Spirit Super, Naomi Edwards, helps the team assess how a stronger focus on board effectiveness may have exposed the problems overlooked by the Theranos board and helped to mitigate the damage.

Episode Guide:

• 0:32 — Overview of Principle 4: Board Effectiveness
• 5:44 — Interview with Naomi Edwards about what an effective board looks like and how this principle may have helped in the long-running Theranos saga
• 39:29 — Wrap-up

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Every single member of a board needs to have a deep understanding of the responsibilities of their role for the organisation to run effectively. After all, it is the board who have the ultimate responsibility for the organisation.

In this episode, Bridget and Cameron delve into arguably one of the most important (and most beefy) of the AICD's Not-for-profit Governance Principles — Principle 2: Roles and Responsibilities. Looking back at the now infamous Australia Post Cartier watch saga, they highlight what happens when a board fails to properly adhere to good governance principles and instead tries to shift the blame. Enlisting the help of one of the state's most experienced board members and the Director of Environment, Development and Community at Kingborough Council, Dr Katrena Stephenson, they ponder what could have been for Australia Post and cover off on the expectations all new and aspiring board members should be aware of before deciding to take a seat at the table.

Episode Guide:

• 0:36 — Overview of Principle 2: Roles and Responsibilities
• 6:20 — Interview with Dr Katrena Stephenson about the importance of clearly defined roles and responsibilities for a board and its members with reference to the Australia Post fiasco
• 35:55 — Wrap-up

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For an organisation to work towards its purpose, it must have clear goals and timeframes within which to achieve them. Without a sound understanding of your organisation's resources, as evidenced by the Trump Organisation in the 1990s, it is very hard to succeed and the end result can be catastrophic.

In this episode, Bridget and Cameron delve into Principle 6 of the AICD Not-for-profit Governance Principles. They are joined by Chair of the Tasmanian Community Fund and Non-Executive Director of both TasWater and TasPorts, Sally Darke, to examine best practice around measuring and reporting on financial and non-financial outcomes.

Episode Guide:

• 0:37 — Overview of Principle 6: Performance
• 7:16 — Interview with Sally Darke about the importance of measuring if an organisation is meeting its purpose
• 21:52 — Wrap-up

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What is an organisation without people who are interested, concerned or invested in it? In many ways, it is the stakeholders who make an organisation what it is and as leaders of the organisation it is our responsibility to keep them engaged. In 1999, the UK Passport Authority failed to manage stakeholders effectively as it attempted to upgrade its passport issuing software. Staff were underprepared for the change and customers were left in the dark as media pressure intensified.

In this episode, Bridget and Cameron focus on Principle 8 of the AICD Not-for-profit Governance Principles and are joined by Chief Executive Officer of Diabetes Tasmania and experienced board member, Caroline Wells, to unpack the UK Passport Authority debacle.

Episode Guide:

• 0:37 — Overview of Principle 8: Stakeholder Engagement
• 7:04 — Interview with Caroline Wells about how stakeholder engagement should be applied throughout an organisation
• 28:46 — Wrap-up

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What can the long, drawn-out case of Edward Snowden and the National Security Agency (NSA) teach us about governance? In this episode, Bridget and Cameron explore how conduct and compliance, as outlined in Principle 9 of the AICD Not-for-profit Governance Principles, could have helped the NSA to create a culture of reporting and discussing issues. They are joined by the Chief Executive Officer of Hobart based disability service Nexus Inc and seasoned board member, Mark Jessop, to interrogate conduct and compliance through a not-for-profit lens.

Episode Guide:

• 0:42 — Overview of Principle 9: Conduct and Compliance
• 6:01 — Interview with Mark Jessop about what boards need to consider around conduct and compliance
• 26:46 — Wrap-up

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Did you know Kodak invented the digital camera but it was the digital camera itself that would put the giant company out of business? The likely reason behind Kodak's downfall can be found by taking a closer look at its purpose and strategy. As outlined in Principle 1 of the AICD Not-for-profit Governance Principles, an organisation's purpose must be clear and there must be a strategy that sets out how that purpose will be achieved. In this episode, Bridget and Cameron are joined by the General Manager of Tasmanian Leaders and experienced board member, Angela Driver, to unpack what went wrong with Kodak and discuss how purpose and strategy could have saved the photography behemoth.

Episode Guide:

• 0:40 — Overview of Principle 1: Purpose and Strategy
• 5:38 — Interview with Angela Driver about how vital purpose and strategy are for the survival of an organisation in a rapidly changing world
• 19:12 — Wrap-up

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Good culture, as outlined in Principle 10 of the AICD Not-for-profit Governance Principles, can get an organisation a very long way. In this episode, Bridget and Cameron look at the American multinational ride-hailing company Uber and what can go wrong when a board fails to value it's culture with the help of Heather Chong. Heather is currently the Deputy Mayor of Clarence City Council, the incoming District Governor Elect for Rotary Tasmania and has served on a number of ASX listed boards.

Episode Guide:

• 0:41 — Overview of Principle 10: Culture
• 5:37 — Interview with Heather Chong about the importance of culture and how a board is responsible for driving it
• 21:39 — Wrap-up

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One of the most fundamental principles of governance is the composition of your board. In this episode, Bridget and Cameron dig into Principle 3 of the AICD Not-for-profit Governance Principles with the help of Rick Marton. Rick is the founder of digital first brand agency Effective Naturally and serves as chair of the Relationships Australia Tasmania Board. Using Tesla as an example they explore the importance of a effective, skills-based board.

Episode Guide:

• 0:44 — Overview of Principle 3: Board Composition
• 5:30 — Interview with Rick Marton about the importance of diversity and ethical selection in compiling a board
• 30:05 — Wrap-up

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Bridget and Cameron delve into arguably one of the most important of the AICD Not-for-profit Governance Principles — Principle 7: Transparency and Accountability. Looking at the demise of internet giant Yahoo!, they highlight what happens when this principle isn’t applied well. With the help of TasCOSS Board President and Senior Associate at McLean McKenzie & Topfer, Alex McKenzie, they ponder what could have been if Yahoo! had better transparency and accountability practices in place.

Episode Guide:

• 0:44 — Overview of Principle 7: Transparency and Accountability
• 5:14 — Interview with Alex McKenzie about the importance of strong transparency and accountability practices
• 30:24 — Wrap-up

See omnystudio.com/listener for privacy information.