Economic optimism rises, but long-term challenges remain
Directors see signs of recovery, but productivity challenges and capital constraints continue to demand strategic focus.
The real test for boards: productivity
Dame Rosanne Meo DistFInstD says New Zealand is facing its toughest governance context in decades, with productivity the most urgent issue.
For Dame Rosanne Meo OBE, DistFInstD, the test of a high-performing chair begins with strong awareness of your operating context. And today’s context, she says, is among the most challenging she has seen in her governance career.
“It is as tough an economic time as we have had since the crash in the late 80s. Globally, we have rarely seen political uncertainty quite like this and, in New Zealand, our three-year political cycle and the small size of our economy makes it even harder for companies to plan with confidence. However, we just don’t seem to be tackling the issues as hard as we should, or with enough urgency,” she says.
“Australia is certainly facing its economic challenges, too, in the short to medium term, but in spite of this I feel their leading companies are demonstrating a greater sense of confidence and we should learn from that.”
Against this backdrop, she believes one issue looms largest for us as an economy – productivity – and it continues to be insufficiently addressed in New Zealand.
“It’s not just front-line workers holding up stop-go signs . . . look around you. Productivity should be the most critical topic for boards.”
Productivity, she insists, is not just about labour costs or efficiency metrics. It is about enabling every person in the organisation to contribute their best. For a chair, that means ensuring boards focus as much on culture, leadership and organisational design as they do on capital allocation.
Drawing on her current governance roles – as Chair of Briscoes, Chair of two AMP NZ Staff Superannuation schemes and patron of the Auckland Philharmonia – Dame Rosanne emphasises that people remain at the heart of performance.
She welcomes the opportunities that artificial intelligence and robotics bring, but cautions against viewing them as a silver bullet. “AI and robotics are exciting tools, but their value lies in enabling people to focus on higher-value work, not in doing less.”
This perspective reflects her conviction that governance is always as much about people as it is about strategy. A high-performing chair, she says, builds cultures that encourage effort, commitment and a sense of belonging.
She recalls a phrase she heard recently: ‘Happy employee, happy customer’. For her, it reinforces the idea that culture and recognition will lead to improved results.
Asked what sets exceptional chairs apart, she points to their ability to create the conditions for both their boards and organisations to thrive. That begins with teamwork in the boardroom itself.
“The chair’s role is about fostering team spirit and collective responsibility. You cannot have directors sitting back and automatically deferring to another director’s expertise. Everyone needs to stay engaged, curious and accountable.”
She also emphasises the importance of accountability. High-performing boards, she argues, don’t just review management performance – they scrutinise their own. “Board performance reviews – at least annually and including how each director performs – are essential.”
For Dame Rosanne, a high-performing chair cannot afford to be insulated. “It’s never been more important to get out there, listen, observe and hear other people’s ideas. Insulation in the boardroom won’t help you make the right decisions.”
That means spending time with employees, customers and communities, not just reading board papers or relying on executive summaries. Direct connection provides context and insight that sharpens board judgement.
Her advice to current and aspiring chairs is clear: keep productivity at the heart of board conversations, embrace new tools without losing sight of culture, build team spirit around the board table and stay outward-looking. These are the hallmarks of a high-performing chair – and the conditions for boards to thrive in turbulent times.
Dame Rosanne Meo OBE, DistFInstD will appear in an open and interactive breakfast session – ‘The high-performing chair’ – at the 2025 Leadership Conference, with George Adams CFInstD and Marama Royal MNZM, MInstD.
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