Magazine of the Institute of Directors in New Zealand OCTOBER/NOVEMBER 2014 OCTOBER/NOVEMBER boardroom SOLE SURVIVOR Kathryn Wilson and the building of a brand DIVERSITY: NEW ZEALAND FALLS BEHIND ON THE CHARTERED MEMBERSHIP PATHWAY 27 Wanted – independent 36 Why bonds attract 38 Ageing gracefully – 40 Is raising capital ever just 44 Spreading the net with directors for governance investment coping with the rising another day at the office? board appointments roles cost of healthcare We’d like to get our thinking into your boardroom. Growing your brands in a systematic and disciplined way will drive up margin, improve your bottom line and boost your reputation. As a design-led advertising agency, we turn sound business thinking into rich creative concepts and powerfully designed campaigns. Our work is crafted and effective. If your board is looking for a practical, results focused growth partner, request your copy of strategy thinking™ at strategy.co.nz. INSTITUTE OF DIRECTORS NEW ZEALAND TRADE CLOUDY BAY VICTORIA UNIVERSITY SHARE AN IDEA OFFICE OF THE OMBUDSMAN MY FOOD BAG BOOSTED IN NEW ZEALAND AND ENTERPRISE www.strategy.co.nz AUCKLAND | WELLINGTON | CHRISTCHURCH | SYDNEY We’d like to get our thinking into your boardroom. Growing your brands in a systematic and disciplined way will drive up margin, improve your bottom line and boost your reputation. As a design-led advertising agency, we turn sound business thinking into rich creative concepts and powerfully designed campaigns. Our work is crafted and effective. If your board is looking for a practical, results focused growth partner, request your copy of strategy thinking™ at strategy.co.nz. INSTITUTE OF DIRECTORS NEW ZEALAND TRADE CLOUDY BAY VICTORIA UNIVERSITY SHARE AN IDEA OFFICE OF THE OMBUDSMAN MY FOOD BAG BOOSTED IN NEW ZEALAND AND ENTERPRISE www.strategy.co.nz AUCKLAND | WELLINGTON | CHRISTCHURCH | SYDNEY Purpose-built for boards and leadership Used by organizations in over 50 countries Level 4, Plaza Building, Australia Square, 95 Pitt Street, Sydney NSW 2000, Australia | +61 2 8249 8233 boardvantage.com Ad_BV_Boardroom_NZ_0814_FINAL.indd 1 7/31/14 9:20 AM BOARDROOM | 5 FROM THE EDITOR 12 Heart and sole Seeing opportunity where others saw difficulty allowed Kathryn Wilson to spot a gap in the market and fill it with a fast-growing brand of fashion footwear 10 First steps on the Chartered Membership pathway 12 Heart and sole There’s good news and bad news 15 Diversity: missing the beat in this issue. The good being 18 Inside Mentoring that energetic entrepreneurs for Diversity like Kathryn Wilson seem to 20 Ethnic diversity – business flourish here – even against needs to catch up tough odds. The not-so-good 22 Room to move news is that when it comes 24 In distinguished company to embracing board diversity, 28 Baking and the New Zealand is well behind. corporate food chain 30 Playing the long game This matters – not because 34 Is mass media marketing diversity is important for its really on the way out? own sake – but for fundamental 36 Why corporate bonds economic reasons. Research has are more popular here found that organisations led by than in Australia boards where there is diversity of 38 A golden age? thought, background, gender and 40 Raising capital – just age are more capable. Diverse another day at the office? boards are more open to ideas, more aware of the international INSIDE IoD and domestic market’s demands, 7 CEO Report shareholders’ expectations 8 Update and staff’s concerns. They are 42 Director Development more likely to come up with 44 Board Services original and effective solutions. 46 Branch News Homogeneity masquerades 48 Branch Events as efficiency and cohesion but ultimately it is less effective. Katherine Robinson Editor, boardroom Institute of Directors in New Zealand (Inc) Mezzanine Floor, 50 Customhouse Quay 15 Diversity: missing PO Box 25253, Wellington 6146 30 Playing the long New Zealand the beat tel: 04 499 0076 We were the first country to game fax: 04 499 9488 give women the vote, yet in Should business be worried email: [email protected] board appointments for women, about a National-led www.iod.org.nz it’s been slow progress government in its third term? 6 | BOARDROOM Institute of Directors (IoD) boardroom is published six times SENIOR MANAGEMENT TEAM COUNCIL 2013/2014 a year by the Institute of Directors Chief Executive Officer Stuart McLauchlan, President; in New Zealand (IoD) and is free Dr William Whittaker Michael Stiassny, Vice President; to all members. Subscription for Liz Coutts, Auckland; Warren Dalzell, Manager, Membership, non-members is $155 per year. Auckland; Glenn Snelgrove, Bay of Plenty; Marketing and Communications Margaret Devlin, Waikato; Jim Donovan, boardroom is designed to Nikki Franklin inform and stimulate discussion Wellington; Dr Helen Anderson, Manager, Governance Leadership Centre in the director community Wellington; John McCliskie, Nelson Simon Arcus but opinions expressed in this Marlborough; Ray Polson, Canterbury; Geoff Thomas, Otago Southland magazine do not reflect IoD Corporate Services Manager policy unless explicitly stated. Chris Fox COMMERCIAL BOARD For all editorial enquiries: General Manager Commercial Ray Polson, Chairman, Stuart McLauchlan, Editor, Katherine Robinson Tim Allen Dr Alison Harrison, Rangimarie Hunia 027 5639 686 or email [email protected] Registrar Dr Lisa Docherty For all advertising enquiries: Fran Page: 04 801 0450 The Institute of Directors has staff based at the National Office in Wellington, and eight branch managers operating from their localities. For National Office, telephone boardroom is designed by 04 499 0076. For branch managers’ contact details see Branch Events, page 49 Strategy Design & Advertising, www.strategy.co.nz boardroom is pleased to acknowledge the support of sponsors Institute of Directors in Marsh, Chapman Tripp and KPMG. New Zealand (Inc) Mezzanine Floor, 50 Customhouse Quay, PO Box 25253, Wellington 6146, chapmantripp.com, 04 499 5999 marsh.co.nz, 0800 627 744 New Zealand Tel: 04 499 0076, Fax: 04 499 9488 Email: [email protected] www.iod.org.nz kpmg.co.nz, 09 367 5800 BOARDROOM | 7 CEO REPORT Why we really are better together Writing from Canada after attending the latest meeting of the Global Network of Director Institutes (GNDI), IoD CEO Dr William Whittaker examines the power of diversity in harmony I write this before election day in New It helps small nations in a globalised world The purpose of GNDI, of which New Zealand Zealand. While New Zealanders’ focus to be formally part of a wider political or is a founder and an Executive Committee has naturally been on the election, the economic entity, although Switzerland and member, is collaboration and mutual western world’s attention has been Norway with their populations of around enhancement. It is in its infancy but the caught by the Scottish referendum on 5 million (about the same as Scotland) potential is huge, with the group developing independence with the pre-referendum would suggest there are exceptions. the concept of a global passport, entitling debate and post-referendum tasks all Scotland voted against independence members of one nationally pre-eminent focusing on the applied principles of on Thursday, but it was not a vote for the director association to access benefits from collaboration, partnership and cooperation. status quo. The debate over regional and others within the group, a sort of frequent flyer programme for directors’ institutes. Collaboration is the ability to work with national autonomy has just begun, and others and turn ideas into reality. This it promises a constitutional shake-up In a globalised world companies need quality is especially important when in the United Kingdom. David Cameron to be sharper. The director’s skillset in obstacles emerge. These difficulties now faces a broader debate over the international companies is broader. There are hard to overcome in a team setting centralisation of power in London, are therefore learnings to be gained from without a collaborative spirit. That Britain’s place in Europe, intense budget our colleagues’ experience, be it ‘say pressures, and dissent within his own party translates into shared vision and values. on pay” in Australia, hostile takeovers as he heads toward a general election in Canada or creating equality through In any secession, the following questions campaign next year. Commonsense diversity in South Africa and Sweden. IoD should be asked: can people not speak prevailed but victory will be at a price. their language or practise their religious New Zealand, with one of the highest faiths? Are they discriminated against? Are I attended a concert by the Orchestre member to total national population ratios their human rights abused? Is the economic Symphonique de Montreal. A Russian in the world, is considered a lead violin deck stacked against them, such that their artist of prodigious skill and size – one in the ensemble with our best practice standard of living has declined or not kept reviewer described him as “a large pianist” materials, commitment to diversity pace with progress elsewhere? Is there performed Profoviev’s 2nd Concerto, one through Future Directors, Mentoring such disrespect directed toward them by of the most technically formidable piano for Diversity and upcoming but yet to people elsewhere that collective relations concertos in the standard repertoire. Those be announced diversity initiatives and are uncomfortable, even intolerable? of you who have read Richard leBlanc’s professionalisation programme. Inside the Boardroom will be familiar with The answer to these fundamental questions his analogy of the orchestra. A group of What we are collaboratively working for – the ones on which a breakup should talented musicians could play a passable is a strong currency, encapsulated in the be focused – were all resolutely ‘no’ in version of any scored piece of music. concept of the truly professional director, Scotland’s case.