Michael Smith has chaired some of Australia's most recognisable organisations including the West Coast Eagles, iiNet, 7-Eleven, Starbucks, Synergy, the Perth International Arts Festival, and now sits on the board of AusCycling. In 2014 he was awarded a Doctor of Letters from the University of Western Australia for his contribution to business and the arts sectors.
In this episode of The Company We Keep, Michael shares the framework behind decades of boardroom leadership, from his concept of complicated vs. complex organisations, to the three tests that identify a true High Court matter, to why directors need to spend half their time ‘walking the village’ rather than sitting in the ‘castle throne room.’
He also reflects on navigating two of WA's highest-profile corporate crises (the iiNet hostile takeover and the 7-Eleven wage scandal), why he deliberately avoids holding power in his mentor role at Hawaiian, and what the ‘dog-on-a-freeway’ reality of directorship actually means for your wellbeing
Michael Smith: https://www.linkedin.com/in/michael-smith-a4059a57/
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Key Takeaways:
Servant leadership is the foundation & your job is to make the people you lead as effective as possible.
Culture before financials: go sit in the call centre before you open a spreadsheet.
Organisations aren't engines. They're complex adaptive systems. Treat them like machines and crises will sneak up on you.
Being a director is like being a dog on a freeway. You will get hit, it's just a matter of when.
50% of a director's time should be in informal spaces like walking the village, not sitting in the castle’s throne room.
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Website: https://vectoradvisors.au/
Connect with Shaun Duffy:
Shaun Duffy: https://www.linkedin.com/in/shaun-duffy/
Vector Advisors: https://au.linkedin.com/company/vector-advisorsau
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Chapters:
(0:00) Intro & preview
(0:44) Introducing Michael Smith: corporate director royalty
(2:18) Leadership philosophy: servant leadership, wisdom & no single model
(3:16) Evaluating board seats: culture and call centres before financials
(5:28) Why he avoids power -- mentor-in-residence, AICD mentoring & asking better questions
(7:48) Complicated vs. complex: why organisations aren't engines
(11:06) High Court matters: the three tests for decisions that demand the full board
(13:34) The medieval village: why directors must spend 50% of time outside the throne room
(16:50) Crisis in the boardroom: iiNet hostile bid, 7-Eleven scandal & the dog-on-a-freeway reality
(19:26) Sport vs. business: bumblebee thinking, the Eagles, Oz Cycling & mountain biking
(27:08) How 4,000 interviews a month for 20 years shaped an evidence-led strategy philosophy
(32:18) Advice for 40-year-olds, 18-year-olds & the real risk-reward of ASX directorships
Produced by Podwave Studios: https://www.podwavestudios.au
The information provided in this podcast is general in nature and does not constitute financial or investment advice.
