DLMA ANALYSIS SOLVING ROLE DILEMMAS Last conference – New Directions in Directing Colourful language Be passionate but keep it clean Why I get excited – developed it and it is transformation Transformation starts with a methor first time DLMA analysis has been presented We’re learning together Presented by PETER TUNJIC

Development of Management thinking - Start with Trees

Most of the 20th Century the thinking was on the trees The Executive’s focus was on the trees The Board – more like parsley – decorative but useless

Mid 70 – we separate the forest and tress Trees and management Forest represents leadership Forest represent the board = parsley on fist decorative but useless

Forest represents leadership Focus on what will be The image could also be taken to represent the board – forest look like parsley – and at the time boards were seen a bit like parsley – decorative but useless

Until the Mid 80’sin response to a series of crisis it became clear that management and leadership were no enough. The board took responsibility for what was hiding behind the trees – oversight and risk

Seagull boards.

What’s Missing

What is missing is what I call directorship.

In 2016 it’s not good enough for board to ask what if In 2016 it’s not good enough for board to ask what if. They must lead and ask what could be. The board role in value creation is what I have termed “directorship”.

Balanced. Sustainable, Complete but hiding a dilemma Balanced. Sustainable, Complete but hiding a dilemma. Take this metaphor and turn it into a tool. Summed up in the acronym. Pronounced dilemma. DLMA analysis turns this metaphor into a tool. Tension between board and executive. Between leadership and management. Between assurance and directorship. Between assurance and leadership. Between directorship and leadership. DLMA Analysis helps measure

Why Do DLMA Analysis ? Provides a framework for understanding the systems of control within an organisation. Helps to identify capability gaps within an organisation. Exposes misalignment within the Board and the whole organisation. Solves role dilemmas between the Board and the Executive.

Two Dimensions and their Extremes Control – Board Executive Value – Creation Protction Creation/Executive = Leadership Protection/Executive = Management C

Directing and Governing are Different From Corporate governance to directorship and assurance.

Directing and Governing are Different Directorship Assurance Right Things Things Right Take Risk Oversight Risk Create Value Protect Value Inspire Executive Monitor Executive Looking Beyond the Forest Looking Behind the Trees

The Four Quadrants of DLMA Analysis Tensions Board executive Assurance and Leadership Management and Assurance

Value Creation - Directorship and Leadership Similarities

Value Protection – Assurance and Management Similarities Can’t create value with a managerial mindset LeBlank – Create another commitee

How To Do DLMA Analysis Sum up DLMA Analysis.

Directorship Questions Does the Board Design, Debate and Decide the organisation’s future? Does the Board Inspire and Guide the Executive to realise the organisation’s purpose? Does the Board Help the Executive without Expectation?

Leadership Questions Does the Executive make strategic decisions aligned with realising the organisation’s purpose? Does the Executive inspire and motivate employees to realise the organisation’s purpose? Does the Executive model the values of the organisation?

Management Questions Does the Executive set goals, create plans and allocate resources to achieve them? Does the Executive effectively assign roles and responsibilities? Does the Executive focus on the necessary day-to-day tasks, review and anticipate resources needed?

Assurance Questions Does the Board oversight the Executive team? Does the Board monitor financial, compliance and business indicators? Does the Board ensure appropriate processes are in place to manage risk?

Two Minute DLMA Analysis: Value Creation Simple tool

Two Minute DLMA Analysis: Value Creation

Two Minute DLMA Analysis: Value Protection

Two Minute DLMA Analysis: Value Protection

Two Minute DLMA Profile Directorship Leadership Assurance Management

Can You See Beyond the Forest From Behind the Trees?

Thank You. Peter Tunjic Level 5 North Building 333 Collins St Melbourne VIC 3000 T: +61 (0) 4 07762212 E: peter@tunjic.com W: www.ondirectorship.com