Thank you for your support in what has been a remarkable and special year for Crelos - made possible by your enthusiasm and support.
I write this just one month after our contribution to Sir David Walkers Review of Corporate governance in UK banks and other financial entities. The final report suggests a series of reforms to improve the quality of Boards, strengthen the role of shareholders, and increase transparency of pay and bonus structures. Above all significant focus is given to the Board construction, training and to the dynamic and unconscious factors that can influence the behaviour of individual members of Boards and the behaviour of Boards-as-wholes of banks and other financial institutions.
These changes are targeted in the first instance at Banks and other financial institutions but some will soon be extended to other sectors. The Financial Reporting Council (FRC), custodian of the Combined Code which promotes high standards of corporate governance in UK companies, has announced that it proposes to adopt the recommendations of the Walker Report that it considers, after consultation, are appropriate to all UK listed companies, into a revised version of the Code due out next year.
I am struck by the cumulative impact and continued relevance of our key arguments - recognizing the importance of leadership behaviour and talent in delivering sustainable business. At Crelos, we are firmly of the belief that inherent within the role of leadership and stewardship is responsibility for continuous development and education. Furthering the knowledge and skills of others as well as furthering ones own knowledge and skills is a primary requirement of leaders. Leaders who engage in this way in their own personal development are the ones who are best placed to inspire, harness and engage the talent of future.
Over the past few weeks, I have come to discuss these proposed changes and propositions with our clients who are keen to understand what this means for their organisations. Our conversations have mostly been around the sort of evaluation and development processes that are most applicable to Boards. There is no doubt that whilst there are examples of Boards who conduct regular thorough, externally facilitated reviews, professional Board evaluation and continuous development of executive and non-executive directors is not yet common practice. Developing an approach that will capture the imagination of forward thinking chairmen will require collaboration and new thinking.
At the heart of the Walker Review is a multi-disciplinary approach which combines Board responsibility with the expertise of law, finance, psychology and social science. The coming together of such disciplines to consider Corporate Governance and the evolution of BOFI Boards creates a mindset for organisational learning. It is the benefit of a learning mindset and a focus on collective responsibility that will improve governance; nothing less, nothing more.
So for those of all faiths and none, best wishes for the season - and Merry Christmas and a Happy New Year.
Id welcome your comments so please do contact me at firstname.lastname@example.org
Read more about the Walker report, the FRCs revised Combined Code or Crelos Board evaluation services.