Institute of Directors in New Zealand Welcome Introduction from me (about me) On the Radar July 2015

Current and emerging trends Adding value and strategy Information challenges for boards Disruption Independence Talent strategy Tenure Technology governance Diversity Current and emerging trends These are some of the key emerging trends: nothing is certain Other trends such as health and safety governance will be well-covered later in the course We could spend hours on every topic All are up for discussion – choose three for us to focus on today

Disruption Does your board understand disruptive technology? Environmental and horizon view - opportunities and risks Disruption Entrepreneurs looking to do what you do better and differently: cut out the intermediary Next big thing is not something you can derive from analysis or white-boarding - opportunities almost everywhere Many new innovators never expected to lead First mover almost never wins The way we collect and build: machine intelligence, data processing, additive manufacturing/3D print Mobile phone is super computer in pocket Cloud computing Adaptions like Uber forcing the core technology & drive use of data and storage

Independence Increasing scrutiny of formal and informal independence What are your key independence challenges? Independence Consultant and academic interest in publicly-listed companies Interlocks Scrutiny of relationships with customers and suppliers, social relationships and philanthropy Ensure Conflicts Of Interest(COIs) and ethical boundaries well-understood

Talent strategy ‘Talentism is the new capitalism’ How important is talent strategy to your board? Talent strategy People and culture have a big future Increasing competition to acquire quality Dr. Klaus Schwab @ World Economic Forum 2013: ‘Talentism is the new capitalism’ - ‘In age of capitalism: companies acquired capital to acquire talent. In coming age of talentism model flips: firms will acquire talent to acquire capital.’ What do you know about the entity’s talent management approach? Four generations in the workplace Stop promising what employees no longer want

Tenure How do your boards approach tenure? Tenure Emerging issue…and a touchy subject Clear relationship between turnover and company performance on S&P 500 Companies with low turnover under-perform Modest turnover: out-perform High turnover: low performance Discussion has relationship with remuneration Remember CEO and management team actually drive performance