Case Studies
"I would like to improve my board's understanding of their governance roles as part of the board review process."
The Issue
The Agency had members who do not fully under stand their role as representatives’ vs trustees.
Our Approach
We recommended the TBPL online board evaluation and review questionnaire combined with a one on one feedback with a one hour session between TBPL and members to discuss their responses and their governance responsibilities. A total board review feedback and individual review feedback based on the one on one discussions was sent to the Chair.
The Outcome
Not only did the individuals achieve a greater understanding of their roles but there was greater confidence of the members. Areas of development for both the individuals and the board was also identified. The individual review feedback reports gave the Chair a valuable basis to feedback and work with the members. The output also identified a disconnect between the board's rating of itself versus management in one aspect of the board's role. This was an important and unexpected outcome which resulted in the board increasing its support for management as part of their role and all benefiting.
“We want to emulate New Zealand in forming a monitoring agency for our State Owned Enterprises”
The Issue
A South Pacific Country had formed a number of commercial organisations from within the operations of government agencies. Through the New Zealand Aid Programme, one of the Principals was invited to advise the relevant Ministries on the formation of the equivalent of New Zealand's Crown Company Monitoring Advisory Unit.
Our Approach
The Principal worked inside the Finance agency to develop a programme for both staffing the agency and to formulate the tools necessary for monitoring the performance of the new commercial entities. Part of the assignment necessitated a review of the draft legislation for the new commercial agencies and a separate review by a legal professional was initiated. Another component in the assignment was a hypothetical work plan and step-by-step guidelines on corporatising the commercial parts of a government department into a government-owned company.
Subsequent to the completion of this assignment, the Principal was invited to provide overview advice on government/agency relationships in the form of a contribution to a major public and private participants' seminar, hosted by the government.
The Outcome
The client improved their ability to monitor in a systematic fashion and more effectively identify the performance and effect of the new operations and thereby complete their monitoring role more effectively.
“How can we ensure that we all have the same standards for governance and communicating with our constituents?”
The Issue
A District Council asked The Boardroom Practice to work with them to establish governance best practice for the Council. Some Councillors were also having difficulty managing communications between themselves and their constituents following Council meetings.
Our Approach
A code of conduct for Councillors was established and then an interactive session was facilitated to induct Councillors into this code. The Boardroom Practice also ran a training session to help Councillors manage their relationships with their constituents. Participants discussed techniques for overcoming potential objections should a Council decision not be to their constituents’ liking.
The Outcome
The code of conduct enabled the Council to project a united approach to all constituents. Councillors were also more confident in speaking with constituents about Council outcomes.
"As a part of our performance monitoring we insert Observers into the boards. A number of the Observers require up-skilling in governance, board/management relationships and board reporting regimes"
The Issue
The officials, all of whom were experienced financial analysts, did not have a strong understanding of how companies function and, in particular, the role of the board.
Our Approach
The Boardroom Practice provided solutions and advice through a one-day seminar on the issues referred to above. Observers and officials from the monitoring agency attended the seminar, which was conducted along the lines of an induction programme for new directors and supplemented with guidance on board appointment issues and performance indicators.
The Outcome
The client reported complete satisfaction with the outcome. Through increased awareness of board functions officials were able to put the decision making and outcomes from the board into context and support and analyse the company more effectively.
"We're concerned that our collective shareholding relationship may be interfering with our governance and management.".
The Issue
A large city council, with a shareholding relationship with adjacent councils, sought assurance that its collective shareholding relationship with a council-owned company met the best possible standards in regard to governance communications and monitoring regimes.
Our Approach
We undertook a detailed analysis of the prime documentation – constitutions, statements of intent and the terms of reference (including delegations) to assess both the currency of their contents and whether any of the parties were straying outside their roles, to the disadvantage of the shareholders’ investment. This analysis was supported by in-depth interviews with the key players – councillors, officials and the board and senior management of the company.
The Outcome
Few serious issues were identified but, in discussions with the council shareholders’ group, we were able to recommend a number of ways to rectify the scope for distortion in each party’s understanding of their roles and responsibilities. Included in our recommendations was the furtherance of governance development at senior levels in the several managements, as well as for interested councillors.
"We need independent advice on our governance practices and communication."
The Issue
A city council, with a number of Council Owned Organisations (CCOs), requested advice regarding its governance/organisation communications and protocols. The several parties had each developed views about the effectiveness of the other parties in the CCO’s delivery of its service to the owner and to its clients. For its part, the board and management of the CCO considered that the council’s management was intruding excessively into the operations of the organisation.
Our Approach
It was necessary to review the foundation and management documents pertaining to the formation and operation of the CCO including, in particular, the statement of intent. The council’s reporting lines needed close scrutiny too as there were misinterpretations of the roles prescribed to all of the participants. In-depth interviews were a major component.
The Outcome
To some extent, the lack of distinction between purchasing areas of the council and the performance monitoring had created barriers to sound communication. A lack of definition for certain roles added to the stress, and the non-delivery of certain services to the CCO had caused frustration-driven disharmony. These were documented in our report and in our presentation to the Mayor and Councillors, who indicated that our recommendations had merit and would be implemented.
"What's the best way to improve the governance practices of all the organisations in our province?"
The Issue
A provincial economic development agency sought to strengthen the quality of governance in the many organisations in the province while, at the same time, wanted to create a larger pool of potential directors, trustees and board members. The agency was mindful of its many small and medium businesses and the limited access to governance development.
Our Approach
Working with the agency, we customised a governance programme from our range of options to ensure that the information was most relevant for the types of businesses and trusts that were key stakeholders of the province. We also involved the University of Otago within this programme.
The Outcome
The response from the participants of the programme was rated highly from the feedback questionnaire and reinforced the particular significance of the relevance and customisation of the programme to meet their needs. TBPL is now working and customising further programmes for this province and other provinces throughout New Zealand.
"How can we best restructure our agency to meet the needs of a large client base, as well as increasing the return on each client's investment?"
The Issue
A major economic land management and development agency wanted to develop a commercial arm that would improve financial returns on the revenue flows derived on behalf its clients.
Our Approach
Our review of the legislative environment demonstrated that, without major legislative change, the options to improve the governance structure were limited. We focused instead on looking at alternative mechanism to achieve a similar outcome including the creation of a new company. We also gave recommendations on the restructuring of management and the operations within the organisation so that the current staff could operate more effectively to improve the financial returns for the agency. We also endeavoured to ensure that the recommendations were culturally acceptable to the organisation.
The Outcome
The board and management agreed with the recommendations for the formation of a parallel commercial arm and are in the process of implementing the recommendations. Within the detailed report were several recommendations which, when implemented, will lead to a more compact and less conflicted governance regime.