Good governance means asking the right questions
Director and community leader Arun Chaudhari MInstD shares how the Company Directors' Course (CDC) has made a difference in his work.
For more than three decades, former army officer Kendall Langston (CMInstD) has had the opportunity to guide others through challenges and change, while being inspired by an array of talented leaders along the way.
Based in Ōtautahi Christchurch, he is chair of a number of boards including Oderings Garden Centres Ltd, Taggart Earthmoving Ltd, Rainer Irrigation Ltd and The Connect Group; deputy chair of Angus New Zealand; and a member of University of Canterbury’s MBA advisory board. By day, he is managing partner and strategic advisor at Pivot & Pace.
This week, Kendall shares an insightful book about the art of negotiation and strategic thinking, and explains why ‘strategic initiatives’ present a challenge for directors.
I read widely but a recent book I recommend is Never Split the Difference by Chris Voss and Tahl Raz.
I like the informal, first-person approach and style of writing. I like reading about people who have led in complex or challenging situations and have succeeded. This is quite a rarity in New Zealand, and not many CEOs and business leaders have led in a prolonged tough market – purely because of generational succession, changing social age groups and a lengthy period of economic growth and stability.
My governance roles and work as an advisor to boards and CEOs requires the art of negotiation, so I have been reading a lot about this topic over the past 12 months or so.
The author worked extensively as an FBI hostage negotiator, and I was fascinated at how simple many of the techniques were to apply. Some ideas weren’t new, but there were some great tips and practical tools that have application in governance work, coaching, commercial negotiations, sales and leadership coaching. It also gave me a few handy tips to help negotiate with my kids!
Having a diverse range of experiences contributes to being a better director, so reading is one way to add to this. I tend to see things through a leadership lens, so reading about people, their leadership journey and how they lead change – and remain resilient in challenging times – adds to the skills needed in the boardroom.
Governance is about connecting with people, leveraging diverse skills, influencing change and making the best decisions possible for the company to succeed. A key part of this is remaining curious and open-minded around business and people dynamics. Reading is a way to sharpen the saw and discover fresh perspectives. Currently, the annual rate of director depreciation is running at approximately 20 per cent, so professionals need to work hard to remain relevant in a business environment of constant change.
I would recommend it for directors at any stage in their governance career. Most directors will have had successful executive careers so will gain a lot from this book around people dynamics and the art of influence.
I tend to read a lot of biographies and history, sometimes philosophy, or the odd novel.
Top of mind issues include preparing companies to be well-placed to grow market share and to take advantage of the inevitable – more positive economic cycle coming in late 2025 and 2026. The succession of boards and executive teams is right up there too, alongside the development of leaders that are needed to enable business growth.
By far the biggest challenge is the execution of strategic initiatives when the norm now is to expect business leaders to navigate constant change while also growing and scaling a profitable business. This is hard to do and, yet, it is now an expectation.
I enjoy the challenge of leadership, change and working alongside diverse and talented leaders. You certainly get this in spades as a member of a board. I am often amazed at how clever people are and the great ideas they seek to explore – people never cease to surprise me in so many ways – good and bad.
I have also discovered that the judgement and decision-making skills I learnt as an army officer are so valuable in the boardroom.
I would like to see more directors go through formal governance training, especially founders and shareholder directors, because it brings a different lens to the table. Ongoing professional development and board succession planning keep a board sharp, and board self-assessments are also valuable. By far the number one thing I would like to see more of is directors keeping an open mind about how things could be done in the future.
If you have a book you would like to share, contact sonia.yee@iod.org.nz.