Behaviorial dynamics in Asian boardrooms
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Transcript of Behaviorial dynamics in Asian boardrooms
In the beginning Heaven and Earth were
formed. Heaven was represented
as a circle, and earth, as a square. That was the Chinese
tradition. And the symbol of a king was a vertical
line connecting Heaven, Man, and Earth
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THINKING DIFFERENTLY!
Perspective of a Governance Architect
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Forms follow function
Design Human Relationship Project Management Technical Specs
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WHAT IS THE PURPOSE OF A BUSINESS?
Seeing Differently
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“The purpose of a business is to find and keep a customer…” Peter Drucker
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Therefore, it follows that the purpose of
CG is to ensure that the practices of
finding and keeping customers can be
sustained….
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SO, HOW TO BE AN EFFECTIVE DIRECTOR?
AND DOING SO IN A ROOM FILL WITH STRANGE, UNFAMILIAR, AND INTELLIGENT MEN AND
WOMEN? It depends….
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! Fit for Purpose ! Team Work ! Roles of Governance vs Roles of Management
! Competency ! Context
NO BOARD ���IS EVER PERFECT
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AND BEHAVIOR IS CONTEXTUALLY BASED…
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! On Culture ! On Context and Sophistication
of the Industry ! On Competitive Response ! On Competency ! On Complementary Roles in
Control ! On the Power of the Chair
DEFINING EFFECTIVENESS – 7C’s
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Competency Directors and
Chair
Complementary Roles in Control
Board and Management
Culture and Context Maturity and Industry
Competition
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PERSPECTIVE OF CULTURE - ASIAN
• If only John Chan can speak up more. He has so much to add. How can he speak up more?
• Why is Jill Lee always late?
• Why is that he always grabs the Chairman on the side and whispers into the Chairman’s ears?
• How much do you earn? • Can I have a second helping please?
• Dr. Wong always host a 12-‐course dinner, despite having so much food left after the meal. Why?
• Be careful with generalization!
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ONE MAN BAND
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ORGANIZATIONAL CONTEXT AND BEHAVIORS THAT FRAME GOVERNANCE
BOARD (Management Accountability)
GOVERNANCE Internal Accountability
MANAGEMENT (Staff
Accountability)
Source: Accion, 1998 13
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BABY BOARDS, ASIAN BOARDS, AND UNIVERSITY BOARDS
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In Asia, the top guy is much more ‘equal’ than everybody else….
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Operation Supervisory Management Governance
Why?
Roles
Work
What? When? Where? Who?
How to?
WHOSE DECISION IS IT?
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TWO-TIER OR SUPERVISORY BOARD STRUCTURE
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FAMILY BOARDS
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Family Council
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Complementary Roles in Control
-- Board and Management
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FUNCTIONS OF A BOARD
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Strategy Formulation
Policy Making
Accountability
Management Supervision
Future Past
Outward looking
Inward looking
Source: Robert Tricker, 2007
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FUNCTIONS OF A BOARD IN PRACTICE
Sample Area of Responsibility " Sample Board Tasks
Accountability • Identify competent managers • Set clear and measurable goals • Monitor performance • Confront weaknesses
Strategic Planning and Policy-making • Provide input in charting strategic course
• Provide guidance in setting policy • Provide guidance in developing and
mobilizing solutions Others • Maintain continuity
• Renew leadership • Self-evaluate
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So, how to be an effective director?
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Competency -- Directors and
Chair
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WHAT ARE COMPETENCIES?
Sets of behaviors Displayed by those who are effective in their jobs Distinguishing the effective from the less effective
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EXAMPLE 1
Engineering Ph.D student Trying to repair a car
Not yet competent
Knowledge
Skills
Attitude/Motivation
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SO, HOW TO BE AN EFFECTIVE DIRECTOR?
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And doing so in a room filled with strange,
unfamiliar, and intelligent men and women?
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#1: ALIGN FIT FOR PURPOSE OF YOUR BUSINESS MODEL
Architecture
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GOVERNANCE Internal Accountability
Source: Oracle, 1998
# The Roles of the Board – DeSines the business – Approves strategic decisions and working policies
– Allocates resources – Selects and motivate talents
# The Roles of the Executive Directors – DeSine and communicate the strategy
– Deliver the plan – Lead the employees – Align the talent
#2 SEPARATE GOVERNANCE FROM MANAGEMENT
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#3 LEARN TO PLAY DIFFERENT ROLES ON THE TEAM
VERSATILITY IS KEY
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#4: MATCH COMPETENCY TO CONTEXT
LEARN TO ADAPT.
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#5 CONDUCT AN ANNUAL REVIEW
Feedback is the breakfast of champions
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BRIEF SUMMARY
I. All Boards can be more effective! Director’s effectiveness is contextually based.
II. Different governance skill sets at different stage of growth and maturity.
III. Getting there: 1. Align Fit for Purpose with Business Model 2. Separate Governance from Management 3. Learn to Play Different Roles on Your Team 4. Match Competency to Context 5. Conduct an Annual Review
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P.S.…LEARNING TO LISTEN
聽 31
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NOTES
• All rights reserved. No part of this publication may be reproduced, stored in a retrieval systems or transmitted in any form for by any means, electronic, mechanical, photocopying, recording or otherwise without the expressed permission of the copyright owner. Permission will generally be granted for free use of the material within this document on condition that the source is clearly credited.
• Some of the photographs included in this slide pack are copyright protected and should only be used in this slide pack. If you with to use them for any other purposes than discussion of this slide pack you should seek the permission of the copyright owner.
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