Upload
eepa
View
62
Download
4
Tags:
Embed Size (px)
Citation preview
DYNAMIC GOVERNANCE Public Institutions & SME
Alain Deniau & Alexa Bailey October 2014
1 1
With over 50 locations and more than 1,400 employees
around the world, we have the resources and contacts
necessary to conduct a global, multinational, national, or
local market search.
Heidrick & Struggles
► We are keen to add value to world class businesses
► We are an international, premier provider of
leadership advisory services, including executive
search, talent management, board composition,
executive on-boarding and M&A effectiveness
► 60 years of industry experience and brand equity,
with a Global team of over 350 consultants working
from more than 50 locations in principal cities of the
world and emerging markets
► Our clients include FTSE 350, Fortune 1000 and other
marquee global organizations. We successfully
completed over 550 CEO and Board engagements in
2013
Heidrick & Struggles Overview Heidrick & Struggles Office Locations
2 2
We Partner across the Talent Cycle – Leadership Advisory
Business Strategy
Identifying, Recruiting
and Hiring
Succession Planning
Promotion and
Rotation
Engaging and Retaining Continuous Learning
and Development
Onboarding and
Integration
Leadership Consulting
Leadership Search
Talent Strategy
Talent Cycle
Leadership Consulting
3 3
How we foster and help to lead Board debate and development
4 4
The Next Horizon for High Performing Companies
The European Corporate Governance Report 2014 sets out a new charter for the boardroom based on: - Detailed analysis of 400 of Europe’s largest listed companies conducted biennially since 1999 - A board effectiveness survey completed by 236 European board members - Heidrick’s 60-year track record of working with high performing boards The research identifies six key characteristics that define a new spirit of agile and responsive governance rooted in board leadership: 1) Deep Business Knowledge 2) Diversity of Thought 3) Engaged Leadership 4) Strategic Alignment & Execution 5) Capacity to Adapt 6) Leadership Talent When combined these lead to Dynamic Governance
“The best companies do not wait to
be governed, they shape the debate
and set best practice with agile and
responsive leadership that adapts
quickly to the changing circumstances
of business.”
Can Public Administrations
use our findings to increase
their efficiency?
DEEP BUSINESS KNOWLEDGE Curiosity is a prerequisite – inspect don’t expect
Any debate is only as good as the quality of the information and knowledge at work.
Chairmen and boards must possess deep insights into the business.
DIVERSITY OF THOUGHT Diversity must be rooted in meritocracy and the attainment of
business goals. The needs of the business drive diversity.
“The selection of the right people for the
board is increasingly critical. Diversity of
thought is the key.”
ENGAGED LEADERSHIP The modern chairman requires an “all-court game”
The job of the chairman is to manage the balance of
skills, knowledge and experience on the board, and
to constructively challenge management and the
non-executive directors to drive outstanding
performance.
“If the CEO is the heart of the
company pumping vibrancy
through its very core, the
chairman is the soul of the
corporation, its conscience, its
moral keeper.”
STRATEGIC ALIGNMENT & EXECUTION Organizational nirvana occurs when everyone knows where they are
going, the strategy for getting there and then makes that happen.
The theory is alluringly easy; practice, devilishly difficult.
“In the short, they (board
members) cannot be uncritical
lovers but have to be loving critics
to the institutions which they are
paid to serve.”
CAPACITY TO ADAPT World class boards try
to anticipate the next
development – to future
proof the company
One of the greatest challenges facing
corporate governance is that it is seen
and often interpreted and implemented
inflexibly. This is out of kilter with
organisational reality. In the face of
continuous change and relentless
competition the capacity to adapt is a
key competency. Organisations - and
boards - must be able and willing to
change direction if and when required.
Governance, at its best, is forward
looking but fully aware of the lessons of
past performance.
LEADERSHIP TALENT People execute strategy
Identifying and developing leadership talent and planning succession issues among a
company’s leaders is often on the to-do list of boards. There it can remain.
“In the long run, the systematic
development of stars is the most
effective strategy to create a sustainable
competitive advantage.”
DYNAMIC GOVERNANCE Public Administration and SME
Good Governance can help the public administration to make SMEs grow
through good legislation
Legislation may inhibit innovation
Compliance may not help business to develop
In the SME context, Capacity to adapt – Deep business knowledge –
Diversity of thought are key factors for the Public Administration
DYNAMIC GOVERNANCE Applied to SME
Governance is the same for all entities and does not depend upon the
size of the revenues or upon the fact that it is listed or not or family
owned
The difference is in the way governance is implemented
The specific case of Family Businesses
14 14
The family business dilemma in CEO succession
In all family business around the world,
whatever the country or the culture, a
major concern and critical challenge is
CEO succession. Most family
businesses, whatever their size, have
grown thanks to the exceptional
contribution of an emblematic founder.
This historical figure puts a constant
pressure on any one that follows in the
leader (CEO) role, especially as they
will have to accept, sometime
unfavorable, comparisons.
The four dimensions of a CEO role
CALL TO ACTION Actions that should generate high-quality Public Administration
which would lead to business competitiveness and economic
growth
Define what is “good governance” for the Public Administration
How can the Public administration embrace all of our 6 key characteristic from the report?
What organisational innovation is required to ensure good governance?
Copyright © 2014 Heidrick & Struggles. All rights reserved. Reproduction without permission is prohibited
Thank you