Sector and AuSAE News

  • 19 Apr 2015 2:31 PM | Louise Stokes
    This article originally appeared in the Company Director MagazineNew Zealand’s strong growth and bold reform agenda have made it one of the world’s most dynamic economies and a prime destination for companies to hold major events and conferences, writes Domini Stuart. 


    Craig Richardson is chief executive officer (CEO) and managing director of Wynyard Group, a market leader in advanced crime-fighting software used by government agencies and financial organisations. He was born and raised in Australia, and his software grew out of working with the Australian Federal Police. But, 18 months ago, he launched Wynyard Group with a listing on the New Zealand Stock Exchange.


    “New Zealand is a relatively small country, which means most of what you need to start and grow a hi-tech company is easily accessible,” he says. 


    “There’s a concentration of talent here, particularly in the technology area. And New Zealand has a culture of building things for export because the local market is just not big enough to support substantial growth. I think that’s a different mindset from Australia, where you can make your first $10 or 20 million just in Sydney, Melbourne and Brisbane. We always had the view that we needed to make our first 20 million in the UK or the US,” he says.


    New Zealand also has a flexible and generally light-handed approach to regulating the labour market. “There’s still debate as to whether deregulating and removing all of our protections in the eighties and nineties was the right thing to do, but it has left New Zealand with a very open and competitive environment,” says Chris Money, director at PwC New Zealand. “Labour is cheap and plentiful.”


    “Because it’s so cheap and easy to start a business, there’s a culture of ‘having a go’,” adds Robbie Gimblett, leader of the private business market sector of PwC New Zealand. “Kiwis are known for their adaptability and ingenuity – there’s a saying here that all they need to make or fix something is a piece of Number 8 wire – and, generally, they aren’t afraid of failure. They’ll take a product to market quickly and do the fine-tuning as they go.”


    New Zealand has an aggressive regulatory regime for listed companies but the capital market, stock exchange and regulator are all very supportive of small company listings.


    “There’s a growing acceptance that the technology sector in particular is expanding very rapidly with high-quality companies,” says Richardson. “The downside is that the market is very small with a limited number of offshore investors, so growing companies can reach the ceiling very quickly.

    “It’s becoming reasonably common for companies to access capital at an early stage through an initial public offering (IPO) in New Zealand because you can have cut-through here and get close enough to institutional investors for them to understand your business. Then, as you scale up and look to access more capital and a more liquid market, you can move across to the Australian Securities Exchange (ASX).  


    “Xero and Orion Health are good examples, they’re two of the most successful tech companies to have come out of New Zealand in last five years and both are dual listed,” he adds.


    Challenges for the board

    A fast-growing company with an offshore market demands a range of boardroom skills. Richardson is confident that New Zealand has a critical mass of directors and management teams with the experience to do the job. 


    “We have maintained our industry advisory council of former intelligence agency and law enforcement executives who continue to assist with strategy and market expansion,” he says. “We have also attracted a strong, independent board of local and internationally-based directors. Our chairman is a former CEO of ANZ Banking Group in New Zealand and his former legal counsel is one of our directors so we have the “big company” experience. We also have two entrepreneurs who have successfully grown technology companies and other directors with US and UK industry expertise. When I think of the boards I’ve dealt with in Australia, the directors have been very high quality but they haven’t come from a start-up, high-growth technology company background.”

    Governance in private companies is more of a concern. “With the farming sector, private companies drive the New Zealand economy but there’s still nowhere near enough independent directors on the boards of private businesses,” says Gimblett. “We are seeing one positive trend, however, which is a move toward advisory boards. These can work well for start-ups and fast-growing companies because they’re more informal and so more flexible.”


    An economic turnaround

    When Lehman Brothers collapsed in 2008 New Zealand was already in recession. By the middle of 2009 the economy had shrunk by a further 3.6 per cent. 


    “That was quite a painful time, but a lot of Kiwis were spending more than they were earning and that can’t go on forever,” says Gimblett. “They had no choice but to clean up their balance sheets and cut down on expenditure. You could say we hit a speed bump, sorted things out and now seem to be on a more sustainable path.”


    By the end of 2009, demand from the country’s two biggest trading partners, Australia and China, triggered historically-high prices for dairy. The subsequent economic turnaround was so impressive that HSBC economist Paul Bloxham was moved to describe New Zealand as the “rock star economy of 2014”. Growth for the year was 3.2 per cent compared with Australia’s 2.7 per cent, and New Zealand also finished the year with one of the lowest unemployment rates in the Organisation of Economic Co-operation and Development (OECD).


    “Growth is being driven largely by construction associated with the Christchurch rebuild,” says Money. “Obviously a lot of money is going into the city to fund major capital projects and also to rehouse people who lost their homes in the earthquake. We’ve also got strong net migration into New Zealand and a significant undersupply of housing in Auckland, so construction, infrastructure and housing are being driven out of Auckland as well. Meat and log prices are pretty good and stable, and tourism is also performing strongly, so we’re expecting to maintain an average of about 3 per cent growth over the next few years.”


    An attractive destination

    Tourism is one of the brightest stars in New Zealand’s economic firmament, currently generating $9 billion a year and with strong growth predicted to at least 2020.


    “The government has invested $600 million in tourism and tourism promotion since 2008 and that really seems to be paying off,” says Franck Hesse, area director of sales and marketing at IHG New Zealand, the parent company of Crowne Plaza, InterContinental and Holiday Inn hotels. “Close to three million people visited New Zealand during the last year and they spent over $7 billion.”


    The film director Peter Jackson has also done much for the New Zealand economy by filming both the Lord of the Rings and The Hobbit trilogies in his native land.


    “The 100 per cent Pure New Zealand advertising campaign had already created a strong brand when it was relaunched in 2012 as ‘100 per cent Middle-earth, 100 per cent Pure New Zealand’,” says Bjoern Spreitzer, international business events manager at Tourism New Zealand. “A lot of people are now motivated to come here because they feel as though they’re actually visiting Middle-earth.”


    A significant income-earner in its own right, the business events sector also drives the broader tourism industry. “We know that many delegates bring their partners or families and stay on after their conference or event,” says Sue Sullivan, CEO of Conventions & Incentives New Zealand. “They spend significantly more than leisure visitors, go home as ambassadors for New Zealand and very often come back for a holiday.”


    Four new conference venues should be operating by 2018, including one in Auckland that will accommodate up to 3,000 visitors. “This will open new markets by enabling us to host much larger conferences,” Sullivan continues.


    New Zealand is an attractive option for conference organisers as well as the delegates themselves.


    “We’re remote enough to be one of the safest countries in the world, which is increasingly important, yet we’re an easy 10-12 hour flight from the west coast of the US as well as much of Asia,” says Spreitzer. 


    “The city centres are relatively small so the hotels are usually within walking distance of each other, and it’s very easy to travel out of the cities to see dramatically different scenery and many other attractions.”


    New Zealand has non-visa arrangements for business visitors from 50 countries and, recently, the government made favourable changes to the rules around the Goods & Services Tax (GST).

    “A new refund scheme means that non-resident businesses can save 15 per cent on the cost of events held in New Zealand,” says Hesse.


    Emirates and most Asian carriers fly into New Zealand and the national airline, Air New Zealand, has significantly increased capacity on most of its routes. “Air New Zealand is another of the country’s major success stories, posting record profits this year as Qantas and Virgin were reporting losses,” says Spreitzer.


    Fluctuating dairy prices

    The biggest cloud on New Zealand’s economic horizon is the plummeting price of dairy products, the country’s biggest export commodity. In December 2014, prices fell in auction to the lowest level in more than five years, and agribusiness banking specialist Rabobank is predicting that dairy farmers will continue to face acute challenges in the next 18 months. 


    “Over the past seven years, dairy prices have shown enormous volatility, with extreme highs, followed by sharp retractions in pricing,” says Ben Russell, CEO of Rabobank New Zealand. “Clearly the rollercoaster ride continues.”


    The medium to longer-term outlook remains sound but persistently low prices will inevitably have an impact on the economy as a whole. 


    “Like Australia, New Zealand is vulnerable to a fall in commodity prices, though New Zealand’s economy has traditionally been more patchy,” says Gimblett. “Fluctuations in commodity prices have been the reality for New Zealand for the last 25 years,” adds Money. “I think that, as a result of that, our firms have learned to be a bit more agile and resilient, as well as a bit more conservative than their Australian counterparts.”


    New Zealand is also very committed to finding new ways of creating export income.


    “There’s a sense of urgency in their diversification into more modern industries,” says Richardson. “For example, the universities, governments, industry and even the retail investor market are all lined up behind high technology so it’s almost starting to feed itself. I haven’t seen quite the same sense of urgency in Australia. I get the feeling that many people are still thinking ‘after the resource sector what do we do next?’”


    Money would like to see more Australian companies forging links with New Zealand. “My question for any company in Australia that’s looking to expand is why not consider New Zealand?” he says.  


    “I’m sure many Australian organisations could benefit from our good, competitive and reasonably non-regulated market and lower labour costs,” he says.

  • 17 Apr 2015 11:00 AM | Deleted user

    The AuSAE Lecture Series commences in April with the topic, Emerging Trends in Not-for-profit Board Governance. These events are a great opportunity to hear from a panel of experts  and sector leaders about topics and advancements in the not-for-profit sector in a particular arena. The 3-hour lecture style allows for greater learning opportunities in a smaller time frame than a full day conference.

    The Topic


    The effective practice of governance requires vigilance. Not-for-profit executives must appreciate current governance practices, understand what first-class governance looks like, and look onward to potential future developments. Attendees can expect a high level discussion on emerging trends in not-for-profit governance and will take away understandings of significant value to themselves and their organisation.

    Attend to hear:
    • An overview of Australian Governance Frameworks with reference to Board structures and representative types;
    • An overview of International Governance Frameworks and why our sister associations in Asia and America might just be leading the way;
    • Insights into Boards of the Future;
    • Legislative changes that could affect Board Governance;
    • Strategies for building a cohesive and strong Board;
    • Conversations to create an effective CEO and Board chair relationship; and
    • Methods to ultimately enhance the Boards performance, leading the organisation to new heights
    Meet the Presenters

    Al Percival, Managing Director, Diligent BoardBooks

    Al Percival joined Diligent in 2003, and has since held numerous leadership roles in America (New York), Asia and New Zealand. Today Al is Managing Director of Diligent Board Services APAC and happily based in Australia. Throughout his twelve years with Diligent BoardBooks, Al has advised thousands of companies both public and not-for-profit on how secure, electronic access to board materials can improve organisational effectiveness and governance.



    Jennifer Robertson, Consultant, Board Matters (Brisbane Only)

    After more than ten years in private legal practice, Jennifer made the strategic career move to become a corporate governance consultant. Today, eight years later, Jennifer is Board Matters’ Governance Practice Leader, a practicing lawyer and maintains numerous company director roles. These include Deputy Chair of the Queensland Building and Construction Commission and Director at Asthma Australia and the Queensland Independent Schools Block Grant Authority Ltd.



    Phil Butler, Manager ACT Public and Not for Profit Sectors, Australian Institute of Company Directors (Sydney & Melbourne Only)

    Phil Butler has been with the Australian Institute of Company Directors since 2000. As Manager ACT Public and Not for Profit Sectors, Phil has worked closely with numerous Boards, CEO’s and Directors of organisations in both the public and not-for-profit sector. Since 2011 Phil has led the AICD Not for Profit Project, designed to support NFP organisations to achieve their missions through improvements in governance, building greater awareness and supporting ongoing professional development.



    Damian Mitsch, CEO, Australasian Podiatry Council

    Damian Mitsch is the CEO of Australasian Podiatry Council, a Company Director as well as a leader in Healthcare, Governance, Strategy and Change. Damian is on record as saying that it’s incumbent upon leaders to give back to others and to work on the next generation of leaders. The AuSAE team held Damian to this core value, asking him to share his knowledge with other members during this Lecture Series. Damian happily accepted this proposal.


    Registration includes: arrival tea and coffee, a networking morning tea break and A5 compendium with note pad and pen.


  • 16 Apr 2015 2:28 PM | Louise Stokes

    The Bankwest Foundation has partnered with the University of Western Australia Centre for Social Impact (UWA CSI) to undertake a research program Supporting Development and Growth in the Community Sector in Western Australia. The aim of the research program is to increase our understanding of the difference community programs make and what factors can enhance the resilience and long-term financial viability of Western Australia’s emerging social enterprise sector. Improving the evidence base on the measurement of the outcomes of community programs and of the financial sustainability of WA’s social enterprises will support growth and innovation in the community sector and build community resilience.


    Outcomes of the research program will be delivered through the Social Impact Series and through community workshops and forums. The present paper Measuring Outcomes for Impact in the Community Sector in Western Australia is the first issue of the Social Impact Series.


    As community organisations seek to understand more about how to measure their impact and effectiveness, and governments, philanthropists and investors aim to better track and measure the impact of their funding, outcome measures, tools, frameworks and systems have gained more currency across the community sector and in policy circles. In 2011, an outcomes-based procurement reform was introduced in Western Australia (WA) to fund programs for increased social impact in the not-for-profit sector. This reform has generated increased interest in outcomes measurement in Western Australia and in the development of a more systematic approach to outcomes measurement in Western Australia.


    This paper provides an introduction to the outcomes measurement field and examines the international context of outcomes measurement in the not-for-profit sector, focusing on trends in outcomes measurement, policy and practice developments in the United Kingdom, the United States of America and Canada. It explores the evolving relationship between funders and community organisations in terms of the establishment of an outcomes measurement framework. Finally, it outlines some potential challenges and considerations facing the Western Australian community sector, funders and policy makers in implementing a richer, more effective and sustainable outcomes measurement framework.


    Please find full report here.

  • 16 Apr 2015 2:01 PM | Louise Stokes

    Managing a change initiative through to a successful conclusion is fraught with pitfalls. Here are three key change management techniques that help make the road to your desired conclusion far easier to navigate.


    1. Leverage the power of rational self interest


    At a key level, corporate business and change management are not too far removed from the relationship between parent and child. When a parent wants their child to do something that the child really doesn’t want to do, the most effective method of successfully making the child come into line is to appeal to their self-interest. We all take this basic approach to self-interest throughout our life. Understanding this element of change management leads to three key methods to strategise using rational self-interest to successful adoption of change initiatives.


    Bring experts on board early


    A poorly designed change initiative is a major reason for failure. When top performers, project analysts, and subject matter experts are combined to create working groups early on in the process, two clearly defined objectives will be met:

    • Early observation of impact, with feedback on potential changes obtained at early stage
    • Preparation of the process and psychological impact on people required to come to terms with the change


    Survey your audience


    Whenever a major change is considered you should survey your end users. A survey will initiate the transition process and capture unidentified pitfalls and feelings. Experience shows that such surveys are best done by a third party, with anonymous feedback ensuring honest feedback.


    Spend time at the coal face


    If you want to know exactly what the change will mean to your people, then go to the coalface and see its impact for yourself. This also has the positive aspect of showing filed staff that their opinions are valued and sought after. You’ll soon find yourself posing questions such as ‘will this change work?’ and ‘what, if any, is the negative impact of this initiative?’ 


    2. Reduce ambiguity


    It is easy to sign up for an ideal end position of ‘increased productivity’ or a ‘more open innovative culture’, for example. But in coming to this ideal state, there will be periods of ambiguity along the way. These periods are likely to cause frustration, worries, and fear among employees affected. The result of such emotional stress can even lead to top performers fleeing for newer pastures.


    To combat high ambiguity, it’s necessary to be more transparent, especially with frontline staff. Explanation of processes and the rationale for change is only part of the way to combat such ambiguity issues. You should also ensure there is a mechanism for concerns and issues to be raised and discussed. This strategy alone will ensure a greater level of respect for you and the project, encouraging your people to support the change. No longer will your people say "I'm all for increasing productivity, but I just don’t have the time", or "All these projects start off with a bang and then fizzle out."


    Remember that ambiguity is likely to surface in the following areas:


    Situational

    • Vague issues and problems
    • Unreliable data / conflicting information

    Scope

    • Too many goals that compete with each other
    • Lack of clarity on how success will be measured
    • Not enough resources and time to properly tackle the goal

    Relationships

    • Unclear hierarchy
    • Unclear roles and responsibilities
    • Politicking and favouritism

    Processes

    • Finger pointing; accusations and blame instead of cause
    • Key personnel changing too often
    • Cause and effect poorly understood

    3. Give support for people to let go


    Changing behaviours can be a traumatic process for many people, and you’ll need to provide support structures to avoid fundamental attribution error. You’ll need to lead the way, engage influential people as exemplars, but also encourage people to let go. Sometimes more than encouragement will be required.


    Force people to let go


    We need to let go to reach out. We need to stop holding on so tight. We need to create the space so the new change can be allowed to grow and become comfortable. You can encourage your employees to do the same. Use these three techniques to encourage people to move with the momentum of change: 


    The cut off

    • At some stage the old system needs to be switched off

    The move forward

    • The new process is taken on: ‘we will no longer accept information via emails'

    The incentive

    • New benefits for the first people to embrace the change and new systems / processes

    There will be times when you need to pry people’s fingers away from the thing they are holding onto for dear life. Once you do, you’ll see them roll with the momentum of the future.


    Organisational change is tough. Most likely you are dealing with some kind of organisational change right now. Leverage the three key change management techniques to enable front line adoption.


    Please find original article here.


    Author Credits

    Daniel Lock is Principal of Daniel Lock Consulting, a firm focused on organizational and individual performance improvement. Contact him at www.daniellock.com & Blog at daniellock.com/blog email Daniel@DanielLock.com and phone 0413 033 703

  • 16 Apr 2015 1:56 PM | Louise Stokes

    In nearly every business, employees comprise the backbone of the company, ultimately determining that business’ level of success. It isn’t enough to have skilled and talented employees, however. Your employees must be engaged in their work, connected and dedicated both to their individual tasks and to the goals of the entire organisation. Employees who are engaged are much more likely to find happiness and fulfilment in their work, and these factors lead to a positive, balanced, and successful business. Here are some of the key ways to foster employee engagement in your workplace:


    Always Show Appreciation


    Appreciation by supervisors and management plays a large role in the quality of employee performance. Recognition of individual efforts and contribution is vital to boosting morale and making each team member feel special and necessary. Appreciation does not require grand gestures, awards, or accolades. Rather, a simple expression of gratitude can have a major impact.


    Make it Worth Their While


    Many organisations have begun to capitalise on the element of rewards, finding these not only to be a productivity motivator, but a method of team-building and increasing employee engagement. Providing incentives to your team members can be effective and enjoyable for all involved. Some companies have instituted competitions which encourage higher sales or push certain goals. Having something tangible and unique to work towards encourages employees to do their best, while also stimulating creativity: another significant amplifier of engagement.


    Help Employees Advance


    When employees better understand their own work and their role in an organisation, they are much more likely to be successful. Companies who provide opportunities for skills development and training do their staff members a great service. Continued learning is vital on all levels, and by allowing employees to hone and build upon their skills fresh, you keep them on their toes and supply occasions for them to work towards advancement. Plus, having greater skill and confidence at their tasks makes employees happier and gives them a sense of accomplishment and reward. This results in, you guessed it: employee engagement.


    Why Employee Engagement?


    In short, engaged employees are happy employees. This means a tremendous amount for your company. First, satisfied employees tend to display better physical health, meaning they are much less likely to become ill and have to miss work. Second, these employees are, on the whole, more productive in the workplace, possessing increased concentration, motivation, and energy. Third, happier employees dispense higher-quality customer service, which yields more pleasant interactions and results in satisfied customers.


    With these many benefits, it is clear that a consistent focus on employee engagement is a must for any savvy business owner.


    This article was sourced directly from the Line Management Institute of Training Blog.

  • 16 Apr 2015 12:16 PM | Louise Stokes

    Charity organisations across the region should take a close look at last year’s successful ALS Ice Bucket Challenge when considering how to use social media effectively, according to University of the Sunshine Coast Public Relations academic Karen Sutherland.


    Ms Sutherland said that while many charities struggle to fully exploit the potential of social media, ALS hit all the right buttons with its Ice Bucket Challenge.


    “More than $100 million was raised through the challenge, where participants were encouraged to move activity between on and offline spaces,” Ms Sutherland said.


    “They were nominated online, took the challenge offline while being videoed and shared the footage online while nominating someone else, which then took the challenge offline and on it went.


    “This is a fantastic example of a ‘propinquital loop’ – a theory that encourages public relations professionals to approach social media not as a stand-alone communication channel but as a tool to encourage face-to-face stakeholder interaction with organisations.”


    Ms Sutherland, who has worked for the Australian Red Cross Blood Service and has volunteered on the Victorian council of the Public Relations Institute of Australia, is about to hand in her PhD thesis titled ‘Towards an Integrated Social Media Communications Model for the Not-For-Profit Sector – A Case Study of Youth Homelessness Charities’.


    She said her research revealed that traditional thinking often held back not-for-profit organisations from effectively using social media.


    “In many not-for-profit groups, social media is still not viewed as being up there with traditional media, despite the fact that traditional and social work really well when used together,” she said.


    “The charities making the most of social media have a dedicated person working in the role who understands that the key to content is not simply broadcasting but giving people a genuine avenue to feel informed and involved with the charity until their next physical interaction – be that volunteering, donating or attending a function.”

    Press Release from University of the Sunshine Coast

  • 16 Apr 2015 10:21 AM | Louise Stokes

    Researcher: Dr Samuel Wilson and Professor John Fien


    The Swinburne Leadership Survey is the flagship research program of the Swinburne Leadership Institute that examines Australian’s beliefs about the nation’s leaders and citizens. Conducted in late 2014, the Swinburne Leadership Survey is a benchmark study and underpins our goal of contributing to the renewal of Leadership for the Greater Good in Australia.


    The aim of the Swinburne Leadership Survey is to benchmark public opinion about:

    • The trustworthiness and competence of leaders across different social and economic sectors
    • The responsibilities of leaders in contributing to the Greater Good
    • How well national political leaders are delivering on these responsibilities
    • How Australians would like our leaders to address our major challenges
    • The roles ordinary citizens can play as change agents or local leaders of change for the Greater Good

    The Survey provides Australians with a rigorous snapshot of leadership in Australia and, over time, a powerful tool to measure the direction in which Leadership for the Greater Good in Australia is heading.


    The inaugural Swinburne Leadership Survey and Index of Leadership for the Greater Good will be released in April 2015. The 2014-15 Swinburne Leadership Survey is a benchmarking study. The Swinburne Leadership Institute will conduct the survey annually in order to trace changes in Australian perceptions of leadership across different social sectors and to explore the factors that influence these perceptions.




    The survey found that political leaders ranked below all other categories of leaders – business, union, religious, and community leaders - in terms of perceived trust and competence. Community leaders were far more highly thought of than the others on these two counts.


    Community leaders were also seen as the most concerned about the wider needs of society and to take a long term perspective on problems. Conversely, political leaders were seen as more motivated by their own and vested interests than the greater good. They were also criticized for not balancing short term and future perspectives. Only trade union leaders scored worse on these criteria.


    On a positive side, the survey tells us what Australians are looking for: We want leaders whose actions show us:

    • That they are making decisions that are in the interests of all Australians and not letting the unintended consequences of any policy decision to unfairly impact on any one social group
    • That they care for the long-term future of the country, including the needs of future generations of Australians, not just their chances of re-election; and at the same time
    • That they are maintaining the infrastructure and environmental and governmental systems—the ‘commons’—upon which all economic and social development depends


    Download the full report here.


    Please contact Swinburne Leadership  on +61 3 9214 5717  or leadershipinstitute@swin.edu.au  if your organisation would like to participate in the tailored briefings program or would like to partner with the Institute in helping shape and develop the on-line platform or the design and implementation of the 2015 Swinburne Leadership Survey.

  • 14 Apr 2015 12:24 PM | Louise Stokes

    History shows that damage caused by a corporate crisis is usually determined more by the quality of the response than by the severity of the crisis itself.


    Original article can be found here. Written by Jeffry Powell, Charlie Horrell, Al Percival and Eslinda Hamzah


    Poorly handled crises – product recalls, customer service missteps, labor strikes, environmental disasters, hostile takeover bids or regulatory probes – can ultimately ruin an organization’s reputation. In contrast, adversities met with a strong and swift response can actually become opportunities to demonstrate decisive leadership and a commitment to values.

    While the spotlight usually falls on the CEO when a crisis occurs, successful handling of a crisis is usually the result of well-orchestrated teamwork between the CEO, board of directors and corporate secretary. The board must provide its advice and experience to management. It must also safeguard the interests of shareholders – or for non-commercial boards, their donors, taxpayers, members, citizens, students and patients. This role is more than symbolic. Investors and other observers will be dissecting the board’s every action. And it falls to the corporate secretary to ensure that processes are followed, proper documentation is kept and information flows smoothly between all parties.

    But fulfilling these responsibilities demands planning in advance. Especially in a time when stakeholders are empowered by social media, the CEO and board can be quickly overwhelmed unless the right infrastructure is already in place. Broadly speaking, preparedness requires two things: establishing a crisis management plan and a communications infrastructure prior to the trigger event.


    Crisis Management Plans
    A crisis management plan should draw on the expertise of the company’s management, PR and legal teams. It must outline specific responsibilities of the CEO and board during a crisis. The corporate secretary then needs to support the chairman or lead director in ensuring that the plan is followed and in anticipating information and other resources the board will need to confront the crisis.


    Crisis Collaboration Platforms

    A communications and collaboration platform must allow the CEO and board to exchange information, deliberate and make decisions rapidly and securely. While the c-suite may be headquartered in a single location, directors will likely be geographically dispersed, particularly as more companies look to internationalize their boards. The volume of information to be shared between parties is often substantial and frequently revised.

    Most companies have business continuity and disaster recovery plans to manage risks of wide scale disasters such as terrorist attacks or natural catastrophes. But these measures frequently exclude board communication from their scope, lacking provisions for the CEO to keep the board appraised and engaged if an organization’s IT systems go down. A board portal hosted independently of a company’s network provides an efficient and resilient means of communication.


    The Role of Board Portals During a Crisis
    In a world where overnight delivery isn’t fast enough, email isn’t secure enough and sharing PDF files isn’t easy enough, a board portal provides a compelling solution that is:

    • Secure and mobile: With a board portal, information is encrypted and stored on a highly secure external server. Authorized users access the material securely through a tablet app or Internet browser on a device of their choosing.
    • On the same page: The use of a centralized hub for data ensures the latest information is made available instantaneously, eliminating challenges in distribution and version control, and accommodating last minute updates.
    • Decisive: Some portals enable electronic signatures for written consents. Easy voting features let members quickly respond to resolutions and approvals, track how others have responded and see how close they are to consensus.
    • Prepared: The portal can already be loaded with crisis management plans, previous board and committee minutes, and governing documents such as bylaws and committee charters.
    • Informed: A board portal can also provide a central location for summaries and links to news reports, blog posts, Twitter feeds and investor commentary.
    Even the most well run companies should count on being tested by unforeseen disruptions. CEOs, boards and corporate secretaries can minimize the damage – and possibly even turn a crisis into an opportunity to shine – with thorough preparation that includes the establishment of a reliable communications infrastructure.


    AuSAE Annual Partner, Diligent Boardbooks® brings security, simplicity and service to board communications.


    Diligent Boardbooks® is the world’s most widely used board portal because it was created with one purpose in mind: to provide secure and intuitive access to the information that underpins the best-performing boards. So intuitive that it’s as easy as reading a book, the portal gives instant access to updated and archived meeting materials and related resources, combined with the ability to share notes, vote and access the same secure app online or offline. Robust security and privacy are found at all levels of the product — from the data hosting infrastructure, to encryption of content in transit and on the device, to security processes. 


    Each client gets a dedicated account management team and unlimited consultation, training and 24/7/365 live phone support from Diligent employees. Diligent has served boards since 2001 and has a proven track record as a public company.


    Contact Diligent here.

  • 10 Apr 2015 5:00 PM | Louise Stokes

    A new report from the not-for-profit body Community Council of Australia says charities now have less money for discretionary spending, and aren't being given enough money by governments. It's a problem facing dozens of not-for-profit groups around the country.


    An extensive new report - "Owning Our Future:  Better Using Our Assets" - released by Community Council for Australia says Australia's not-for-profit sector and charities have never felt poorer.


    Many of Australia's top leaders in the world of not-for-profit and charities gathered on Wednesday 8th April in Canberra to find new ways of charities and not-for-profits creating a better future for the massive sector.


    Community Council for Australia emphasises:

    • Australia's massive not-for-profit sector is critical to the nation's future.
    • The sector has very real concerns about the kind of Australia we are building.
    • Strengthening the role of not-for-profits will build flourishing communities.
    • Governments have a role to play but are not the only solution.

    David Crosbie - CEO of Community Council for Australia - said, "Late last year in one major survey, over half the respondents expected sector performance to deteriorate in the next 12 months, pointing to negative impacts from Federal Government funding, Federal Government regulations and State Government policy/regulation.  The Pro Bono "State Of The Not For Profit Sector Survey" (released September 2014) found more than half of the 1,200 respondents expected sector performance to deteriorate over the next 12 months."


    "The last PwC - CSI Community Index released late last year clearly said confidence across the sector is negative with charities concerned about being able to deliver services to meet the increasing level of need."


    Campaigner and Chair of the Community Council for Australia (CCA) Reverend Tim Costello (CEO of World Vision) warns there is virtually no collective forward planning in the sector.  He says "It is critical we start to decide on what kind of communities we actually want to live in and be part of. What people forget is that not-for-profits have become a massive employer in Australia, employing over 1 million Australian employees.  This is about finding ways of making the best contributions for Australia in 2020.  Many of the biggest leaders in charities and not-for-profits will be part of our meeting."


    A large list of top not-for-profits are involved with the high powered forum.  This includes World Vision, RSPCA, Lifeline, SANE, The Smith Family, beyondblue, Mission Australia, Save the Children, Relationships Australia, St. John Ambulance Australia, Foundation for Alcohol Research and Education, Pro Bono Australia, Community Sector Banking, Volunteering Australia and many more.


    The report found that charities have been enjoying major growth with 175-billion dollars in assets, and turnover of more than 107-billion dollars. But the Chief Executive of World Vision, Tim Costello says most of the growth in the sector came before the Global Financial Crisis, when Australians were optimistic and charitable. He says it's been an uphill battle since, added to by the increasing demands on not-for-profit groups.


    "Not for profits are dealing with the epidemics of depression, dealing with ice, dealing with mental health and other issues which are of absolute importance as to whether Australia not just has a safety net but flourishes in the future. And the cuts in government funding, the uncertainty about having funding for only 3 months or 12 months sees them unable to really deliver the services."


    One of the report's recommendations is that not-for-profits should look for different revenue sources besides governments. Lifeline Chief Executive Jane Hayden says it's about making operations far more efficient and will will require a new way of thinking and doing business. "Many things we are doing now are services that were provided previously by a government and if we are going to the community... well what are the things that we can do to collaborate, to share our assets and to work out funding models that are going to allow the sector to plan for the long term."


    Tim Costello from World Vision agrees, but adds that the not-for-profit sector needs remain engaged with governments, to be involved in policy formulation. "Where it is appropriate, and there is reduplication, we can look at mergers and acquisitions between smaller not-for-profits. But we also know we need to be at the policy table. Business and unions are always invited but the charitable sector, which employs a million people and five million volunteers is always overlooked and yet when it is at the coalface and it has policy ideas about a richer, better Australia, we need to be there invited and at the table."


    Lifeline's Chief Executive Jane Hayden is also hopeful about the possible outcomes of talks with the government. "We are talking about how we can work collaboratively together and with government to try and map out a future plan for the not-for-profit sector for Australia."


    More on CCA's Owning Our Future - Better Using Our Assets Report is available here

  • 10 Apr 2015 4:25 PM | Louise Stokes


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