Natalie Elms and Jackie Bettington – What Does a Customer-centric Board Look Like?

Transcript

1. Customer Orientated Boards Sensemaking for strategy Natalie Elms Jackie Bettington Queensland University of Technology QUT Business School
2. Mann Gulch, Montana August 5th 1949
3. 6pm 5.55pm 5.30pm Mann Gulch, Montana August 5th 1949
4. The crew expected a 10:00 fire … They rationalized this image until it was too late, and because they did, less and less of what they saw made sense Karl Weick, 1993
5. Sensemaking and Strategy
6. Enablers of Sensemaking ACCESS TO INFORMATION FLEXIBILITY TRUST
7. Sensemaking is a Core Component of Strategizing Organisation Performance Sense- making Strategic response
8. Strategizing by Boards Strategic Focus Board as management Rubber Stamp Outcome Focus High High Low Low Source: Hendry & Kiel, 2004 Strategic control Financial control
9. Sensemaking and Strategizing on not-for-pro4it Boards
10. Data: Developing Your Board Survey Over 3500 Directors serving more than 620 organizations Age distribution Gender Education
11. Data: Developing Your Board Survey Over 3500 Directors serving more than 620 organizations Board experience 0 2 4 6 8 10 12 Current board Total 9 directors Meet for 3 hours 9 mee7ngs per year Average board Paid FTE’s 0 1 - 5 6 - 10 11 - 20 21 - 50 51 - 100 101 - 250
12. Finding – sensemaking enablers for all ACCESS TO INFORMATION FLEXIBILITY TRUST 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Trust Information Flexibility Enablers of sensemaking boards
13. Finding – board orientation Strategic control Financial control Strategic board Board as management Rubber stamp board Outcome board 3500+ directors views on the board they primarily serve High High Low Low
14. Finding – board orientation Strategic board Board as management Rubber stamp Outcome board Strategic control Financial control High High Low Low
15. Finding – trends Organisation Performance Sense- making Strategic response 0 1 2 3 4 5 6 Information Trust Outcome Rubber stamp Bd as Mgt Strategic
16. Finding – trends for boards Organisation Performance Sense- making Strategic response 0 1 2 3 4 5 6 Board stability Board role clarity Board skills Relations with management Board performance feedback Board size is right Outcome Rubber Stamp Bd as Mgt Strategic
17. Finding – trends for directors Organisation Performance Sense- making Strategic response 0 1 2 3 4 5 6 Director satisfaction Director intention to leave Outcome Rubber Stamp Bd as Mgt Strategic
18. Finding – implications Organisation Performance Sense- making Strategic response 0 1 2 3 4 5 6 7 8 9 10 Strategic Bd as Mgt Rubber Stamp Outcome Organisation's performance
19. Finding – implications Organisation Performance Sense- making Strategic response 0 1 2 3 4 5 6 7 8 9 10 Board Management Quality of the board-management relations Other performance indicators Finance Rubber Stamp Bd as Mgt Strategic
20. To work with the idea of sensemaking is to appreciate that smallness does not equate with insignificance. Small structures and short moments can have large consequences. (Weick, Sutcliffe and Obstfeld 2005, 410)
21. Checklist Boards q  Create the space for sensemaking Foster an environment of trust, challenge, exploration of options q  Make a conscious and collective choice on the board’s strategic stance Match strategizing to contextual conditions Balance conformance and performance q  Broaden sources and forms of information Encourage regular interactions Engage external specialists Directors q  Maintain an open mind Sensemaking is driven by plausibility rather than accuracy Be inquisitive q  Be present and informed Keep up to date with the environment and the mission of the organisation Understand the board’s purpose, roles and boundaries ACCESS TO INFORMATION FLEXIBILITY TRUST
22. “It’s only when the tide goes out….” •  Warren Buffett