Trust is the licence to govern

Governing for growth begins and ends with shareholders, says Traci Houpapa MNZM, CFInstD. In a challenging environment, she believes trust and confidence from shareholders are the foundation of effective governance – and without them, boards lose their licence to operate. 

“2025 was a hard year,” says Houpapa. “It is tough out there and the predominant focus has to be on good governance and strong leadership.” 

She is clear that growth, sustainability and resilience are not abstract ambitions. They are earned through disciplined governance that retains shareholder confidence and aligns expectations with reality. 

“As a chair and director, it is essential to have the confidence of shareholders to operate,” she says. “If I lost that on any level, that would make it very difficult to continue. 

“It means I can operate proficiently and productively at the board table, as a colleague and a chair, deliver on the strategy, and support management with implementation.”  

Trust is built through relationships 

Relationships are key to achieving trust and confidence, she says.  

“There are a lot of hurdles which, on a good day, we leap over, and when under pressure boards can get into ‘doing’, rather than taking a breath and thinking about the importance of relationships. 

“Being able to establish and maintain relationships with board colleagues who are going through the same thing, understanding the expectations of shareholders and being able to synthesise that as a board and put it to work on strategy, is important.  

“Also, having really strong relationships with shareholders and balancing their expectations with your knowledge of the market and business, to come to an agreement about where you need to be in the next 12 to 36 months.” 

Houpapa sees ‘Governing for Growth’ as the most important of Institute of Directors’ Top 5 issues for directors in 2026. 

“That’s a substantial priority. Getting the settings right for governance is critical to the success of the organisations we lead.  

“That means objectively and constructively testing thinking on existing strategy, business models and planning, including risk appetite, delivery on audit and risk, communication, and diversity and inclusion. 

“Deeply understanding the role and function of good governance and exceptional leadership in these challenging times is essential to how we must lead as directors and boards.” 

The challenge of shareholder expectations 

Houpapa believes managing shareholder expectations will be the biggest challenge for boards.  

“Directors need to be right-fitting the business plan and approach accordingly because it is not always going to be simple. Shareholders still expect strong performance. They want increased productivity and for boards to deliver.  

“Boards also expect executives and management to implement and achieve those desired outcomes on behalf of shareholders. And sometimes that just cannot be done. Getting expectations set for shareholders for the financial planning period is one of the keystones of our collective success.” 

She says Māori boards are facing all these challenges, and more.  

“We’re in a period for Aotearoa New Zealand where the very nature of who we are as New Zealanders is being actively questioned and challenged. That’s leaving people uncertain and relationships stretched.  

“The Māori boards I serve on are committed to delivering for shareholders; they are our communities and whānau. Boards are doubling down to deliver the same, if not better outcomes and ensure we have that trust and confidence that we are acting in their interests.  

“We have our role as tāngata whenua, as mana whenua, and to deliver on our commitment as a Treaty partner, and that can be difficult. There’s a requirement for additional reporting and accountability. Shareholders need to know that if we hit speed bumps, we will notify them early.” 

A broad governance portfolio 

Houpapa’s governance roles have spanned agriculture, forestry, finance, Māori entities, Ministerial appointments and sport.  

She has been named one of the BBC’s ‘100 Most Influential Women in the World’, one of the top 10 most influential women in New Zealand agribusiness and one of The Listener’s top 10 influencers.  

In 2012, she was appointed a Member of the New Zealand Order of Merit for services to business and to Māori. She serves on the boards of Chartered Accountants Australia and New Zealand, OTPP New Zealand Forest Investments and the Chiefs Rugby Club. 

She is chair of Te Arawa Group Holdings, Hineuru Holdings, the Federation of Māori Authorities (FOMA), the National Advisory Council for the Employment of Women, co-chair of the Australia New Zealand Leaders Forum Indigenous Business Group, and formerly a co-chair of IPETCA, the Indigenous Peoples Economic Trade and Cooperation Arrangement, and a member of the World Economic Forum Global Council on Trade.   

“Serving on a board is an opportunity to really make things happen,” she says. “Good directors see every day as a ‘school day’, maintain pace with market change, and have that understanding and commitment to deliver on shareholders’ expectations. 

“I am also comfortable with the idea of coming to the end of my term and stepping off a board.” 

She feels privileged to serve organisations “very dear to my heart”.  

“My wider whānau, including my father, were involved in establishing FOMA, which has played a major role in the growth of the Māori economy as we know it today, and the National Advisory Council for the Employment of Women is a 60-year-old Ministerial Advisory Group currently focused on pay equity, parental leave and childcare arrangements.  

“It could be said every policy and piece of legislation that goes through the House should have a gender lens on it. Getting that right for wāhine is critically important to the strength and sustainability of our economy.” 

Despite the challenges, Houpapa is positive about the future.  

“I love governance and leadership, and the ability of people like us to deliver on the ambitions and aspirations of communities, shareholders and business owners.  

“It’s been good, after a big year, to take a pause and a breath, and to think about the valuable contribution we as directors can make to an organisation. That is what interests and excites me.”