The power of good governance

To inspire future generations to step up to governance roles, we need to create inspiration and shared understanding for what good governance can achieve.

Brand is a tricky word, misunderstood, regarded as fluffy sometimes. But a strong brand has the power to create connection, change, and capture people’s affection and trust.

For a business and its stakeholders, a brand is an experience that is far more important than a transaction.

Entrepreneur and blogger Seth Godin, when talking about brand, says that people do not buy goods and services they buy “relations, stories and magic”. Without that sense of “stories and magic”, people can quickly become disengaged with a brand, and lost as customers.

Brands also touch an organisation’s business partners, its shareholders and, in the modern world of concern about social licence to operate, a disparate collection of stakeholders that may include the general public, regulators or governments.

Authenticity, trust and affection

Apple tops the Forbes list of the world’s most valuable brands. Apple is an example of a brand that is more than a consumer choice, it is a lifestyle choice. It connects with people on an emotional level and on an aesthetic level. Its customers trust that its products will look good, feel good and work well. Apple is regarded as authentic.

Trust is an emotional connection that we build through experience and relationships over time. It brings people to you, but also allows them to forgive you when things go wrong.

This emotional aspect of brand (nobody claims that all Apple products are better, or certainly not cheaper, than those of their rivals) is important for understanding what Godin’s “stories and magic” means in practice. Apple’s authenticity and trust are a means of beating the (less expensive) competition through connection and a sense of love.

When Mercury Energy won the TVNZNZ Marketing Awards Supreme Award in 2017, its “energy made wonderful” rebrand was credited with stabilising Mercury’s customer churn and establishing it as a key player in the electricity market.

Joan Withers CFInstD was the chair of Mercury at the time. In the foreword to Why aren’t we doing this? a book on brand, she writes: “A strong brand makes every business challenge, and every conversation, easier.”

She says Mercury’s rebrand lifted staff both engagement and stakeholder confidence. “It can be argued that a strong brand is more useful than it’s ever been.”

What is the brand of governance? As the IoD celebrates its 30th anniversary, we have been doing a lot of thinking about how to ensure that governance as a profession remains, or indeed is understood, as a trusted and vital part of the business landscape. In a volatile world, governance will become more important and more challenging than ever before. While we may need to think about what the future of governance looks like – it will undoubtedly remain essential.

From September, you will see the gradual rollout of a new look for the IoD – and we will start to really focus on how to position the importance of governance to our nation for the future. There are many stories to share about the power and outcomes that good governance unleashes. Showing how it contributes to fair, just and sustainable organisations, communities and countries is essential.

“We believe that good governance has the power to transform the future,” says Kirsten (KP) Patterson, IoD chief executive.

“The IoD will continue to have its eye on local and global issues, and to champion best-practice governance, but our brand will take a big step forward in claiming more of our New Zealand spirit.”

An example of what this means visually is the cover image on this issue of Boardroom - a striking aerial shot of Waiwera, North Auckland that allows us to celebrate not just the beauty of our country but also shows how the big picture or perspective can help us see things differently.

“While looking more contemporary feels right, it was important to take a moment to think about why we are here for our members and the governance community and what we are helping them to achieve,” Patterson says.

“Our members are at the heart of what we do. The IoD is culturally rich because of our heritage and strong because of the strength of our members. What gets us up every day is supporting directors who are making decisions that can positively change and transform the future of New Zealand. Today, more than ever, New Zealand needs directors who go beyond compliance and aspire to meet the highest standards. Our goal is to show the powerful results – big and small.”

As we go forward, we want to involve our members and the governance community in telling stories – to inspire future generations and to create a better understanding of why people take on governance roles and what they hope to achieve.

Our new website will be completed later this year and will showcase many faces of directors, real people, getting real results for organisations and communities. Some of our members (pictured) have kindly agreed to be our first “brand ambassadors.” We will share many more stories and faces of good governance.