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Otago Daily Times
13-06-2025
- Business
- Otago Daily Times
Leading the leaders; changing times for directors
How times have changed. When Kirsten (KP) Patterson was appointed chief executive of the Institute of Directors (IoD) eight years ago, one of the very first issues she encountered was a conversation around whether climate change was a governance issue. Now the IoD-hosted initiative Chapter Zero NZ — which is part of a global climate governance initiative that spans 50 countries and is focused on supporting directors to take action on climate change at a board level — has nearly 3000 members. Ms Patterson was in Dunedin this week to speak about ethics at an IoD Otago-Southland branch event, and to attend its annual chartered member and fellows dinner where — alongside Ranfurly-based director Dawn Sangster — she spoke about governance and leadership. Both women were made Members of the New Zealand Order of Merit in this year's New Year's Honours for their services to governance and women. The level of change happening in the world — which was impacting all organisations, whether not-for-profits or listed companies — was so broad, and boards had to be across that complexity and breadth of issues, Ms Patterson said. As chairwoman of the Global Network of Directors Institutes, she had the opportunity to see the global trends via the more than 20 countries represented in that organisation. Not surprisingly, the big issues at present included geopolitics, trade and globalisation, but the approaches to those challenges from different countries and industry groups was quite different. Cybersecurity was the number one issue keeping directors awake at night but, in New Zealand, where IoD members were surveyed each year, that was not in the top three. The big issue coming through very clearly here was economic conditions, then there was also climate change and culture. New Zealand was the first country in the world to introduce laws around climate-related financial reporting and a lot of focus and attention had been put into the issue. While cybersecurity was not hitting that top three of major issues — although it would be for some boards and industries — she would like to see more focus from boards on it. Boards also needed to lean into the conversation around ethical use of artificial intelligence (AI) and the IoD had developed nine principles to help boards to ethically adopt and effectively use AI. Ms Patterson is chairwoman of the Brian Picot Ethical Leadership advisory board at Victoria University. There was specific research in ethics, particularly in the business space, and it was great to have snapshots of what was happening, she said. While there were lots of conversations about purpose and values, there were still not enough organisations having conversations about ethics, she believed. Governance was critical, whether it was for sports clubs or corporates, involving people being relied on to come together and make judgements and choices. The space had changed. For things that were known and certain, for which there were answers, then management would take care of that. Boards were left with the "tricky stuff". Governance provided intellectual stimulation. It required curiosity and a lot of different skills to bring diversity of thought. That was what she loved about IoD communities which were diverse — much more than what people might think — and there were some great people coming through the governance pipeline, she said. "I genuinely believe the difference between whether you're building yourself a job as business owner or building something you could sell is about governance. The business needs to be able to live after you and continue after you," she said. Workload for directors was surveyed by the IoD, and that had peaked around the Covid-19 pandemic. There had been an increase in the hours involved which included work outside board meetings, whether that was the likes of site visits and engaging with staff, or engaging with stakeholders. Boards were much more visible now and, because of the complexity of issues, the amount of learning and thinking and preparation required was greater. It was not about just reading the board papers on the plane on the way to a meeting, she said. Using a sporting analogy, Ms Patterson said boards were a team sport. Directors like Dunedin's Trish Oakley, recently elected national president of IoD, were individual high performing athletes who were training at home. Then those athletes came together to perform as a team. It was an exciting time to be involved in with governance. While directors needed to be comfortable with risk and responsibility, there was an opportunity to see inside so many different organisations and help shape their strategy, culture and framework — "and New Zealand's better off for it", she said.
Scoop
04-06-2025
- Business
- Scoop
Fifth Year In A Row Of Equal Gender Representation On Public Sector Boards
Minister for Women For the fifth consecutive year, women's representation on public sector boards and committees has reached 50 percent or above, with women now holding 52.1 percent of public sector board roles, Minister for Women Nicola Grigg says. Ms Grigg announced the results of the 2024 stocktake of gender and ethnic diversity on public sector boards and committees at an Institute of Directors event on Wednesday. 'I am delighted to see that women's representation in public sector governance remains strong, and that women also continue to be well-represented in Board chair positions – at 44.5 percent. 'We know that having more women in leadership not only brings about greater diversity but is better for business with a positive impact on financial performance and better decision making.' Ms Grigg says that Māori and ethnic diversity on public sector boards has also increased since collection of ethnicity data began in 2019. 'There are many great women leaders in New Zealand who have achieved amazing things. A big part of what we need to do now is inspire the next generation of leaders, and this includes identifying, supporting, and growing future generations of women in governance. 'This is a great achievement, but the work is not done. It's taken a deliberate and coordinated effort to achieve this result, and we continue to focus on ensuring we have gender-balanced boards appointed on merit that result in better governance practices, decision-making and financial performance and, ultimately, better outcomes for New Zealanders.'
Times
04-06-2025
- Business
- Times
UK business confidence is rising but it's not party time just yet
Something curious and rather unexpected is happening. Two prominent surveys of UK business confidence, published in recent days, show that optimism is rising strongly. At a time when firms have just been clobbered with a big increase in national insurance (NI), that is something of a surprise. Yet, sure enough, Lloyds Bank's business barometer showed an 11-point rise in May to its highest level for nine months, with optimism about the economy up by 16 points. Nine of the UK's 12 regions and nations reported stronger business confidence, the survey showed, with the biggest rises being in Northern Ireland, the East Midlands and the South-West, and significant gains also in Wales and Yorkshire & the Humber. The Institute of Directors (IoD) also revealed a strong rise in confidence for last month, with its main measure rising by 16 points, also to the highest since August last year. Firms are concerned about higher employment taxes but slightly less than they were, and worries about the economic outlook have abated to an extent. Investment intentions and export prospects both showed an improvement. It is not yet party time, and confidence remains below where it was at the time of last summer's general election. But as Anna Leach, chief economist at the IoD, puts it: 'It's good to see a recovery in business confidence under way, with our headline measure moving up three months in a row.' At Lloyds Commercial Banking, senior economist Hann-Ju Ho said: 'The rebound in business confidence suggests that firms might be in a stronger position for the next quarter. The rise in confidence is driven by a sharp increase in economic optimism, reflecting the recovery in financial markets amid the easing of global trade tensions.' Firms have had plenty to worry about in recent months, including those higher taxes but also, most notably, the threat of a global trade war, triggered by America's lurch towards the most protectionist policies since the 1930s. President Trump's 'liberation day' tariffs, unveiled on April 2, confirmed the worst fears of many businesses. The recovery in confidence in the past few weeks is thus mainly a reflection of the fact that business people decided those worst fears were perhaps not justified. Not only did Trump announce a 90-day pause in most of the tariffs, he or his negotiators reached an accommodation with China on lower tariff rates, for now at least. US tariffs on imports from China were reduced from 145 to 30 per cent. Not only that, the British government signed a trade deal with America, as well as a 'reset' deal with the European Union and a new deal with India. Things, it seemed, were not so bleak after all and a descent into the abyss had been avoided. Except, of course, we are dealing with a US president whose love for tariffs appears to know no bounds, notwithstanding the fact that they will badly damage the US economy, hit American consumers hard and are the biggest current threat to the global economy. The perception that Trump will always draw back when the extent of the damage becomes apparent or when he is forced into it by the treasury market — the market for US government bonds — has not just buoyed UK business confidence. It helps explain why America's S&P 500 equity market index is up nearly 20 per cent from its lows in the wake of the April 2 tariff announcement. On Wall Street, as you may know, they have an acronym for this, Taco (Trump always chickens out) and I had to admire the reporter who put this to him during an Oval Office press conference, prompting a long, hurt and somewhat confused response. We know, however, that Trump can do and say some stupid things without provocation and the risk is that the 'Taco' label, now he knows about it, is like poking a hornets' nest. Within days, in a speech in Pittsburgh, he announced a doubling of steel and aluminium tariffs to 50 per cent. A defeat for his 'state of emergency' general tariffs in the US Court of International Trade appears only to have emboldened him. The tariff danger is not yet over. It is not, of course, the only danger. With the UK government's public expenditure review looming, businesses are only too aware that all the pressure is for higher spending, not lower taxes. Curbing winter fuel payments was never going to save much money, so a U-turn on that is more of a political than an economic issue. Taken together with pressure to scrap the two-child benefit cap and reverse cuts in disability benefits, however, it starts to add up to real money. An even bigger issue is defence spending, and the hole in this week's strongly worded strategic defence review — the question of where the extra cash is coming from to pay for Britain's enhanced needs — is big enough to be seen from outer space. Some firms will benefit from higher defence spending, and the government has emphasised the potential economic benefits, but others will fear that they have to pick up the bill. At a time when the public finances are already under pressure, even with the big increase in employer NI announced last year and implemented in April, businesses have reason to be worried. They can take comfort from the prime minister's comment this week that you can't tax your way to economic growth and, to a lesser extent, Rachel Reeves's assurances that she would not be repeating last year's big tax-raising budget this autumn. Such assurances only go so far, however, particularly when taken alongside the chancellor's apparent determination to avoid direct tax increases on 'working people'. Businesses will be hoping that history does not repeat itself and that any action to fix the public finances can be delayed. Who knows, maybe by then the 'growth fairy' will have come along and waved her magic wand. But when it comes to tax, firms have learnt not to rely on fairy tales.
Otago Daily Times
30-05-2025
- Business
- Otago Daily Times
Governance about realising responsibility for ‘whole piece'
Accountant and governor Rachel McLauchlan answers questions at a lunch for women in governance in Dunedin this week. PHOTO: GREGOR RICHARDSON Being asked to join a board is a privilege and aspiring directors need to understand it is a huge responsibility that must be taken seriously, Rachel McLauchlan says. Since returning to Dunedin 14 years ago after a decade working in London, Ms McLauchlan has developed a strong interest in governance across various sectors including property, fast-moving consumer goods (FMCG), manufacturing, technology and education. Responsibility for board decisions sat with everyone. "It's about everyone realising they are responsible for the whole piece," she said. It was while working for a United States-listed company in London that the chartered accountant had the opportunity to see so many different aspects of such a huge organisation, including strategic decisions being made. Questioning the reasons behind those decisions started to whet her interest in governance. That was coupled with her brother's own prominent career in business and governance and him talking to her about what was going on in his world. Describing herself as a very proud Dunedinite — and also very proud mother-of-three — Ms McLauchlan grew up in the city, attending both school and the University of Otago, completing degrees in commerce and law. After graduating, she moved to Auckland, embarking on her professional career at KPMG where she had an "amazing time", with exposure to many different industries, businesses and sectors. She later travelled overseas with her husband and landed a role with the US-listed company in London. Shifting from practice into industry was a big step, she recalled. Returning to Dunedin was also a big step professionally, having been away for quite some time. But she was loving living and working in the city and being part of the community. Her first network connection was through the Institute of Directors, an organisation which people encouraged her to join. Former branch manager Vivienne Seaton suggested she do the governance development programme and she discovered a "fantastic network of people". While she was an accountant and also did consulting, she was interested in exploring the governance space and the institute had been very good at opening the pathway and giving her ideas on how to do that and what skills she needed. She has served on the board of Whitestone Cheese and is currently on the boards of Otago Innovation, Hillcrest Properties, Columba College board of governors and is a trustee for the Transition to Work Trust. Asked who had been instrumental in her governance career, Ms McLauchlan said she had "just clicked" with Queenstown-based professional director Sarah Ottrey whom she got chatting to during a coffee break at an Institute of Directors national conference. Over time, she was someone she would bump into and, once she got to know her, she was able to "pick her brain" and ask her for ideas. "Sarah is just wonderful, she gives up so much time for people. You need someone like that in your life you can pick the phone up or ask a question," Ms McLauchlan said. Flipping that around, she now tried to do that with other people. Another influential person had been her late father who was also involved in the business community in Dunedin and was a very positive person, something that she also endeavoured to be. Management did not sometimes understand what governance was there for and what a director actually did. Some people were "almost scared" of board meetings and directors and that was a real shame. "Directors are on the team of the business, they are just part of the organisation. They are the umbrella on top of everything." For those starting their governance career, it was a huge learning curve particularly when they joined their first board because they were trying to understand not only a business, but also the terminology which could be very specific to that business. So it was about listening, particularly in that first year, and being respectful of institutional knowledge — "sitting there and tapping into it as much as you can". When considering a role, it was important to do due diligence — "please understand the financials of any organisation" — get a feel of it and ensure it was the right fit. Directors needed to be clear about why they wanted to be on a board. Many governors started their career in not-for-profit roles and the experience gained there, whether on school boards or sports organisations, threw up a huge amount of governance issues. "I think you see it all, I think it's great preparation for going into that commercial space." There was a "very delicate dance" between governance versus management and the critical thing in any board and management relationship was a good relationship and alignment between the chairman and chief executive. "If that relationship is not strong, the organisation is not going to flourish." Asked what directors were thinking about at the moment, she said board succession was relevant and, with that, a skills matrix. When looking at a board, it was important to understand the skills of each board member. "Everyone brings something different to the table." Lately there had been government policy changes and discussion around how that was impacting organisations. Boards were also grappling with the "tariff world". "It's quite an unsettled world at the moment and people are quite unsettled. Being aware of that is really important," she said. Plus, everyone was talking about artificial intelligence. While there was a lot of debate around it, Ms McLauchlan said it was "just another tool to use". Asked how her own values had supported her, Ms McLauchlan said being someone who was trustworthy was very important. "Trust for me is critical. Feeling like people can trust you and you can trust in someone else is really important. If you don't have that, you have a problem." Building connections and relationships with those you worked with was also important and having integrity and showing respect — even if you did not agree with a point of view — was critical, she said. Asked about imposter syndrome, Ms McLauchlan said "the feeling of being completely out of your comfort zone" was common going into a new board setting, but that was normal. If she was feeling a little uncomfortable, she would ask lots of questions — not necessarily at a board meeting — and, if she was not understanding things, she would reach out to the organisation. There was no such thing as a silly question. When it came to culture, that could change very quickly and it did not take much to upset the culture of a board, particularly if strong personalities were involved. "For me, a lot of culture comes from that respect that everyone has for each other and that philosophy of supporting each other and being aligned with the purpose of the organisation and what you're there for. "When you've got a good culture, work really hard to hold on to it," she said.
Business Post
28-05-2025
- Business
- Business Post
Taiwan Trims 2025 Growth Forecast Amid Tariff Concern
Over 900 hotels and guesthouses in Ireland are eligible to join a collective legal... The head of the world's largest aircraft leasing company has called on U.S. President... The Institute of Directors (IoD) Ireland, a membership body for directors and business... New Zealand's central bank cut its benchmark rate by 25 basis points to 3.25 per... Taiwan lowered its economic growth outlook for this year, reflecting concern about... IDA Ireland sought the views of Irish-based pharmaceutical companies on the EU's... Rio Tinto's board and Jakob Stausholm agreed to part ways last week amid mounting...
