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BALANCING S – HOW to to HOW – Introducing Iod Member 7000 Magazine of the Institute of Directors in New Zealand OCTOBER/NOVEMBER 2015 OCTOBER/NOVEMBER boardroom BALANCING ACT Does risk now outweigh reward for directors? SMEs – HOW TO PICK UP THE PACE CRACKING THE BUILDING CODE Liz Coutts – the IoD’s first Introducing IoD Corporate business Opportunities for directors Ten points to ensure woman Vice President Member 7000 practices go rural health and safety BOARDROOM | 3 8 Does risk now outweigh reward for directors? 13 Reading the future 14 A spur for growth 18 Conflict and the boardroom 20 Mover and shaker 23 Māori solution to the health and safety challenge 8 Does risk now outweigh reward? 24 Keeping it in the family Katherine Robinson canvases opinions on whether 26 Ten tips for directors on directors’ fees still measure up. the new health and safety regime 28 Unaffordable housing – why this is a business issue 29 Making it official 30 Pitch perfect 30 Funding for growth 31 Perspectives 32 Strengthening the code 34 Property risks and liabilities 36 A new route to professionalism 41 Astute in governance 18 Conflict and the boardroom INSIDE IoD A good discussion engages different viewpoints – 5 CEO Report but what happens when there is too much divergence? 6 Upfront 31 Governance Leadership Centre (GLC) update 42 Branch Events 44 Branch News Institute of Directors in New Zealand (Inc) Mezzanine Floor, 50 Customhouse Quay PO Box 25253, Wellington 6146 14 A spur for growth New Zealand The difference between tel: 04 499 0076 20 Mover and shaker a lifestyle business fax: 04 499 9488 Meet Michelle Teirney – and a business can email: [email protected] the IoD’s 7000th member. be its governance. www.iod.org.nz HNZ1520 Boardroom Magazine Advert_297x210 FA.indd 1 6/08/15 10:25 AM BOARDROOM | 5 CEO REPORT Changing gears Volkswagen is the talk of the international Leading Directors’ Forum last month. Jan Hamby’s role for most of her 32- governance community at present Other speakers included Derek Handley, year military career was protecting the with good reason. “The governance Dr Robert Kay, Nestlé Australia US Navy cyber networks. Her advice of Volkswagen was a breeding ground Chairman Elizabeth Proust and ex- for organisations looking to defend for scandal,” said Professor Charles US Rear Admiral Jan Hamby. Held in themselves from cyber attack is simple M Elson, of the Center for Corporate Auckland, the forum drew senior and but incisive. She says that you need to Governance at the University of Delaware, distinguished IoD directors to a two- understand what your digital assets are while the New York Times quotes a VW day event aimed at stimulating fresh first because if you don’t understand executive who cited the company’s “… thinking on issues in governance. that then you have no foundation to isolation, its clannish board and a protect your cyber infrastructure. Entrepreneur Derek Handley discussed deep-rooted hostility to environmental socially conscious business and However her message for the forum was regulations among its engineers.” generational differences in the way timeless. She said that the foundation There are other signals things were amiss consumers think and purchase. The for leadership lay in conducting oneself at Volkswagen. Board composition was millennial generation seek a connection with integrity and with a strong ethic. questioned when the former chair’s to corporate values and authenticity, and In a fast-paced world, the essence of wife, Ursula Piech, was appointed to are likely to quickly dump corporates that leadership in governance is unchanged. the supervisory board. As with many do not live up to marketing promises. other corporate crises, the roots of MILESTONES the problem may beat a well-trodden Change is the only constant as we live in Since the last issue of boardroom, the IoD path back to the role of governance. a world where information is generated, has passed two major milestones. The first stored, shared, protected and turned being that we are now into our second year THINKING DIFFERENTLY into products and services. Individuals of the Chartered Membership pathway. High volumes of insect protein could well have unprecedented power to challenge This transformed the IoD from membership feature in your diet very soon. Insects are governments and corporations. The entity to professional body. Much has a key source of nutrition, delivering more internet puts strangers into each other’s already been achieved in establishing high-quality protein, vitamins and amino homes and cars, and the 24-hour news Chartered Membership and we expect acids than beef or lamb. Crickets need cycle rolls on. More people can see great things to grow out of its foundations. six times less feed than cattle and emit you and critique you or your business The second milestone is that IoD fewer greenhouse gases. Insect protein more publicly than at any other time. membership now numbers over 7000. can be reconstituted to look like energy We risk developing a reactive culture We are pleased that so many members bars to overcome market prejudices. where the urgent overwhelms the have committed to being a part of the According to KPMG’s Head of Agribusiness important. But there’s a nascent organisation and clearly value the services, Ian Proudfoot, the answer to the problem sense that people may seek their own resources and sense of being part of the of feeding the planet sustainably equilibrium in response to this. I notice governance community that we provide. could lie in farming ‘mini livestock’. it as some of my contemporaries shape We value our membership and take pride Ian was one of a line-up of presenters their working hours to work for them in your continued support. offering bold and innovative solutions or consciously and deliberately limit to topical issues at the IoD’s inaugural their availability at certain times. HNZ1520 Boardroom Magazine Advert_297x210 FA.indd 1 6/08/15 10:25 AM 6 | BOARDROOM Upfront MOVING ON The IoD – now The IoD congratulates the following members on these board appointments: over 7000! Those of you who follow the IoD by Anita Killeen has been appointed Chartered Fellow Richard Janes has Numbers section (below) will have Deputy Chair of the Auckland been appointed as a director of Ngai spotted that the IoD has passed a Regional Amenities Funding Board. Tahu Seafood. milestone, surpassing 7000 members. We thank you for your continued Chartered Member Graham Shaw has Chartered Fellow Sarah Smith has been support and commitment to sound been named a director of RightWay. appointed chair of Ngai Tahu Tourism. governance, and promise to continue to deliver value to our membership through events, services and resources. Chartered Fellow Sir John Anderson has Associate Member Kereyn Smith has been appointed chair of New Zealand been elected Vice-President of the To read about member 7000, Asset Management (NZAM). Commonwealth Games Federation board. Michelle Teirney, turn to page 20. Chartered Member Sir Ralph Norris Member Dr Alan Jackson was Get Chartered – is the new chair of Contact Energy. appointed to the board of New Zealand Thoroughbred Racing. your goal for 2016 Chartered Membership demonstrates Chartered Member Alison Gerry has been skill, knowledge and commitment to appointed a director of Vero Insurance The board of HoneyLab has appointed your role as a director. If you have been New Zealand Ltd, Vero Liability Member Dr Ian Boddy. thinking about taking this important step Insurance Ltd and Asteron Life Ltd. up, now’s the time to plan ahead. For Spotlight Reporting has appointed inspiration and information from three Member Geoff Annals has been elected Chartered Member Graham Shaw. recently Chartered Members, see p33. chair of the Health Funds Association. Chartered Member Helen Cull QC has In Sympathy Member Mark Rushworth has been been reappointed Chief Commissioner The IoD offers its sympathy to the family appointed a director of Freightways. and Chartered Member Stephen and friends of Distinguished Fellow Rex Davies Howard has been appointed Loach, who died on 24 August. A strong Commissioner of the Transport Chartered Member Emma Hill has been supporter of the IoD, he was well- Accident Investigation Commission appointed chair of Michael Hill Jewellers. respected, particularly by those who knew him through the Nelson Marlborough branch. Rex had a long governance career, Chartered Fellow Adrienne Young- including chairmanship of the Airways Cooper has been appointed chair of Corporation of New Zealand, New Zealand Housing New Zealand Corporation. Motor Bodies/Coachwork Limited, and Trans West Freighters Limited. He was Chartered Fellow Susan Paterson has also a director on the boards of Newmans been appointed to the board of SKY. Ltd, Milburn and the Cawthron Institute. BOARDROOM | 7 Auckland Airport TERTIARY EDUCATION APPOINTMENTS proud to support Chartered Fellow Ian Fitzgerald, Chartered Member Sir Ralph Future Directors Chartered Member Mike Pohio Norris, and Members Michael and Member Simon Graafhuis Daniell and Peter Kiely have The Chair of Auckland International Airport, Sir Henry van have been reappointed to the been reappointed to the der Heyden, said that the airport was proud to appoint University of Waikato Council. University of Auckland Council. Nicola Greer, a director of Heartland Bank, as their latest Future Director. Member Sarah Brown has been Chartered Fellow Helen Anderson, The airport has a history of supporting the programme, reappointed chair of the Southern Chartered Member Michael Ahie appointing New Zealand’s first Future Director, Sheridan Institute of Technology. and Member Ben Vanderkolk Broadbent, to the board in 2013. “Auckland Airport’s have been reappointed to the ongoing participation in the programme helps to promote Massey University Council. diversity of leadership and the development of governance Chartered Member Dianne talent. The board looks forward to Nicola joining our Kidd has been reappointed discussions over the next 12 months,” says Sir Henry.
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