The document discusses the evolution and increasing prevalence of advisory boards. It notes that advisory boards are becoming more common as companies seek to manage risk, identify opportunities, and build resilience in complex environments. Advisory boards provide independent expert advice on issues like sustainability, stakeholder expectations, and societal issues. The document analyzes 150 large European companies and finds that two-thirds have advisory boards, which on average consist of 7 members and meet 2-4 times per year. It identifies three common phases in the development of advisory boards: starting as internal committees, then focusing on specific issues, and ultimately evolving into broader advisory boards. External perspectives provided see advisory boards as valuable if they have good representation, influence senior levels, have a clear mandate,
The following report by the Credit Suisse
Research Institute explores several important
aspects of the connection between sound governance
and improved business performance. It provides
new data to support the growing investor
interest in governance-related rules and practices
and introduces innovative ways to assess corporate
performance, such as the HOLT governance scorecard,
to support more effective governance-oriented
decision making. Moreover, our experts identify specific
company types and sectors, in which governance
can serve as a particularly robust investment
strategy instrument. Corporate governance is further
likely to contribute to investment decisions in
emerging economies, for instance when firm-level
structures actively compensate for the possible
absence of country-level governance provisions.
Value Addition To Enterpise Through Corporate GovernancePavan Kumar Vijay
This presentation discusses framework of corporate governance, the value of stakeholders in corporate governance value chain. It further enumerates the principles of corporate governance and how these principles of corporate governance can add value to an enterprise.
The following report by the Credit Suisse
Research Institute explores several important
aspects of the connection between sound governance
and improved business performance. It provides
new data to support the growing investor
interest in governance-related rules and practices
and introduces innovative ways to assess corporate
performance, such as the HOLT governance scorecard,
to support more effective governance-oriented
decision making. Moreover, our experts identify specific
company types and sectors, in which governance
can serve as a particularly robust investment
strategy instrument. Corporate governance is further
likely to contribute to investment decisions in
emerging economies, for instance when firm-level
structures actively compensate for the possible
absence of country-level governance provisions.
Value Addition To Enterpise Through Corporate GovernancePavan Kumar Vijay
This presentation discusses framework of corporate governance, the value of stakeholders in corporate governance value chain. It further enumerates the principles of corporate governance and how these principles of corporate governance can add value to an enterprise.
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
The Melding of Cultures during and after a MergerCBIZ, Inc.
Regardless of industry, all mergers are complex initiatives. Understandably, all parties are laser-focused on financial and operational matters. While these are all critical issues, the opportunities presented by acquisition can be squandered if leaders lose sight of the human part of the equation. For both sides of the transaction, it is wise to initiate both a human capital and a cultural audit before proceeding too far down the acquisition trail. Learn more about these best practices in this article.
The ES&G Accountability Forum (2013) provided participants and panelists with an opportunity to examine the question of how information (both financial and non-financial) can best be provided in a form that is useful to decision makers that are affected by, or have an affect on Canada’s companies.
This document captures key points made by panelists, their answers to questions posed, and the Forum’s participants’ table discussions. It is organized around each panel: investors, companies, evaluation organizations. We hope to encourage all groups to consider the advice and comments discussed at the Forum, and to take action on the outstanding questions and issues to improve the state of ES&G disclosure, analysis and investing that are highlighted on pages 9 & 10.
This year on September 23, 2014 in Calgary, many of these unanswered questions will be addressed at the ES&G Forum 2014: "Non-financial performance... A missed opportunity?"
Building on the last two years' discussions, participants will hear how investors and businesses are implementing innovative methods to manage investor demand for ES&G information. To learn more about & register for this year's ES&G Forum, please visit: http://bit.ly/esg-forum-2014
Are CEO's an Unmanaged Risk to the Organisation's they Steer?David Mallard
Are leaders, and the cultures they spawn, an unmanaged risk to the enterprises they steer? Research shows not
only the costs of failure to pay attention to business ethics
costs but the financial benefits of a focus on business ethics. Board reliance on good compliance policies
can only signal intent. The Board’s critical role in building organisational integrity involves four key activities.
Stampify, a Decentralised Corporate Governance Platform (whitepaper)Laurent Kinet
Corporate governance – the way companies are created, managed and controlled – is both burdensome and necessary. Both practices and requirements are obsolete. The blockchain may be the winning attempt where previous technology leaps have since failed to revolutionise them. Stampify aims at bringing businesses into the 21st century thanks to a decentralised corporate governance platform, which is the first stage of a bigger business transformation journey on the blockchain, embracing accounting, finance, private equity, human resources and business activity. The market potential is global, including emerging countries which are in high demand for authentication and decentralisation.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Corporate Governance Definition and PracticeBolaji Okusaga
The recent failures of erstwhile strong institutions has thrown up the importance of Corporate Governance in the running of businesses and the drive for investments. This presentation attempts a basic definition the term and also x-rays practices and processes for sound corporate governance.
AccountAbility et Utopies se sont associés pour produire le rapport « Critical Friends » qui étudie l’expérience des entreprises s’appuyant sur des panels de parties prenantes afin de conforter la stratégie de développement durable. La partie principale de l’étude détaille les expériences en la matière d’entreprises comme Areva, BT, BP, EDF, Camelot, Gaz de France, Ford, Nike et Vodafone.
Ce travail a été réalisé au travers d’interviews avec les membres du panel et de l’entreprise.
Le rapport fournit également un guide pratique pour la mise en place de panels efficaces et étudie comment ces panels peuvent contribuer à l’amélioration continue du reporting, de la gouvernance et de la performance de l’entreprise.
Internal and external institutions and influences of corporateGrace Fatima Abelida
Corporate governance refers to the mechanisms, relations, and processes by which a corporation is controlled and is directed. It involves balancing the many interests of the stakeholders of a corporation. Thus, it is important to know and determine what are the internal and external institutions and influences of a corporate governance.
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
The Melding of Cultures during and after a MergerCBIZ, Inc.
Regardless of industry, all mergers are complex initiatives. Understandably, all parties are laser-focused on financial and operational matters. While these are all critical issues, the opportunities presented by acquisition can be squandered if leaders lose sight of the human part of the equation. For both sides of the transaction, it is wise to initiate both a human capital and a cultural audit before proceeding too far down the acquisition trail. Learn more about these best practices in this article.
The ES&G Accountability Forum (2013) provided participants and panelists with an opportunity to examine the question of how information (both financial and non-financial) can best be provided in a form that is useful to decision makers that are affected by, or have an affect on Canada’s companies.
This document captures key points made by panelists, their answers to questions posed, and the Forum’s participants’ table discussions. It is organized around each panel: investors, companies, evaluation organizations. We hope to encourage all groups to consider the advice and comments discussed at the Forum, and to take action on the outstanding questions and issues to improve the state of ES&G disclosure, analysis and investing that are highlighted on pages 9 & 10.
This year on September 23, 2014 in Calgary, many of these unanswered questions will be addressed at the ES&G Forum 2014: "Non-financial performance... A missed opportunity?"
Building on the last two years' discussions, participants will hear how investors and businesses are implementing innovative methods to manage investor demand for ES&G information. To learn more about & register for this year's ES&G Forum, please visit: http://bit.ly/esg-forum-2014
Are CEO's an Unmanaged Risk to the Organisation's they Steer?David Mallard
Are leaders, and the cultures they spawn, an unmanaged risk to the enterprises they steer? Research shows not
only the costs of failure to pay attention to business ethics
costs but the financial benefits of a focus on business ethics. Board reliance on good compliance policies
can only signal intent. The Board’s critical role in building organisational integrity involves four key activities.
Stampify, a Decentralised Corporate Governance Platform (whitepaper)Laurent Kinet
Corporate governance – the way companies are created, managed and controlled – is both burdensome and necessary. Both practices and requirements are obsolete. The blockchain may be the winning attempt where previous technology leaps have since failed to revolutionise them. Stampify aims at bringing businesses into the 21st century thanks to a decentralised corporate governance platform, which is the first stage of a bigger business transformation journey on the blockchain, embracing accounting, finance, private equity, human resources and business activity. The market potential is global, including emerging countries which are in high demand for authentication and decentralisation.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Corporate Governance Definition and PracticeBolaji Okusaga
The recent failures of erstwhile strong institutions has thrown up the importance of Corporate Governance in the running of businesses and the drive for investments. This presentation attempts a basic definition the term and also x-rays practices and processes for sound corporate governance.
AccountAbility et Utopies se sont associés pour produire le rapport « Critical Friends » qui étudie l’expérience des entreprises s’appuyant sur des panels de parties prenantes afin de conforter la stratégie de développement durable. La partie principale de l’étude détaille les expériences en la matière d’entreprises comme Areva, BT, BP, EDF, Camelot, Gaz de France, Ford, Nike et Vodafone.
Ce travail a été réalisé au travers d’interviews avec les membres du panel et de l’entreprise.
Le rapport fournit également un guide pratique pour la mise en place de panels efficaces et étudie comment ces panels peuvent contribuer à l’amélioration continue du reporting, de la gouvernance et de la performance de l’entreprise.
Internal and external institutions and influences of corporateGrace Fatima Abelida
Corporate governance refers to the mechanisms, relations, and processes by which a corporation is controlled and is directed. It involves balancing the many interests of the stakeholders of a corporation. Thus, it is important to know and determine what are the internal and external institutions and influences of a corporate governance.
Enterprise Risk Management - Aligning Risk with Strategy and PerformanceResolver Inc.
COSO, which has provided global thought leadership and guidance on internal control, enterprise risk management, and fraud deterrence for over three decades, recently released a draft update to the original COSO ERM Framework. This framework is widely used by organizations to enhance their ability to manage uncertainty, gauge risk, and increase stakeholder value. However, significant new risks have emerged since the Framework was released, demanding heightened board awareness and oversight of risk management, as well as improved risk reporting. For those organizations exploring ESRM – these themes will be strikingly familiar and the lessons learned, highly relevant.
Presentation by: Bob Hirth, Global Chairman of COSO.
Corporate Governance a Balanced Scorecard approach with KPIs between BOD, Exe...Chris Rigatuso
This paper, from 2003, during my time at Oracle, was an early attempt to define metrics for inducing accountability between BOD, executives, and operating management of corporations. It's geared to large companies, but the lessons are broadly appreciable. It was published in CFO Reviews by Anderson Consulting, and other places. It predates the SOX Sarbanes Oxley laws that were a result of the Enron Scandal.
The ‘Innovation Audit’ has been developed to help organisations gain new insight into how they are positioned regarding Learning, Agility and Flexibility. These are some of the key components for Innovative organisations. The audit explores yours and others perspectives of the organisational cultural and Eco-cycle. It adds a unique all-round perspective of your organisation, exploring how it has performed in the past in prior change programmes. Many organisations believe they already learn from their past or desire to enhance this behaviour.
Some questions to hold,
How well do you respond to the dynamic demands of your market?
Do you and others;
have a dominant Performance or Learning Culture?
know the 'Strategic Direction' of the company
know where you are on the 'Organisational Eco- Cycle
know how your profile looks in terms of the 8 domains of the 'Change Matrix’
PURPOSE, LEADERSHIP, CULTURE, MOTIVATION, COMMUNICATION, MANAGEMENT, GROUP DYNAMIC, PERSONAL DYNAMIC.
If you want to try this (there REALLY is no charge), contact rod.willis@assentire.net
Audits have changed their traditional focus from cost control towards a global strategy of risk management, governance, value creation, and organizational culture. Auditing is a representative element of corporate culture because it defines how companies think and act, but manage decisions are the true reflection of how a company thinks and acts. Thus, this area expands its importance thanks to its direct participation in risk management and value creation.
Boardroom agenda for FY16-17: priorities and actionsBrowne & Mohan
Boardrooms are witnessing breakdown of business models in their industries and high unpredictability than what they are used to. Weak Chinese economic data, plunging commodity prices, rise and spread of Islamic state group (IS) and its attacks are posing new business challenges. In this presentation, Browne & Mohan consultants discuss what should be the priorities of the Board for the FY16-17 and how must they go about it to sustain the growth and relevance of the organization.
Due to the current instability in the business world, organizations should be able to anticipate changes and have coherent responses at hand to effective manage risks, create value, build good relations, increase profit and improve competitive positioning.
A report titled Exploring Strategic Risk issued in 2013 for Forbes Insights by Deloitte, contains some very important conclusions for the business community. 300 executives from around the world were interviewed for the study, in an attempt to find out their vision of the risk strategy and current changes and analysing how organizations should face these new challenges.
Sometimes it is difficult to link risks to a specific financial impact and not all data are pertinent to the evaluation of emerging risks. That's why companies have to be aware of internal risks and manage them well in order to be able to manage external risks and invest into strategic assets such as human capital, clients and innovation.
This insight explains the case of the financial services as the sector that less trust generates due to its short-sightedness, lack of values and lack of professional education that resulted in corruption and bad practices, which compromised the financial sector.
The report A Crisis of Culture: Valuing Ethics and Knowledge in Financial Services examines the role of integrity and knowledge in restoring culture in the financial services industry. The conclusions appear in the full version of this document.
The financial industry is just one example in the wider panorama. Lack of values is widespread and creates significant risks. Bad practices trigger problems such as loss of profit, loss of reputation and even loss of shareholders, clients and employees.
The crisis, as well as the arrival of new technologies, urges companies to maintain their good practices and emphasize aspects as ethics, leadership, commitment, performance, transparency and sustainability.
The digital revolution and social networks encourage companies to be more transparent: companies meet their promises and obligations, deliver a coherent dialogue and improve the relationship with their stakeholders.
Application of values raises the possibility of good results and profits for companies through improvement of their reputation and business as well as optimization of resources. This certainly creates competitive advantages, establishes a strong cultural connection and improves employees’ motivation.
Before taking any decision, an institution should keep in mind the fact that it needs implicit and explicit public approval. Good business management implies risk management, creating a climate of trust, good will, credibility, social commitment and empathy between stakeholders and the company.
Achieving Sustainability and Responsibility through Stakeholder Engagement: T...Flevy.com Best Practices
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/achieving-sustainability-and-responsibility-through-stakeholder-engagement-the-financial-services-case/
The Increasing Role of Compliance
Finance plays a critical role for society at large, serving individuals, families, businesses, governments, and civic institutions. The Financial Services industry performs indispensable functions such as enabling saving and investment, providing protection from risks and supporting the creation of new jobs and enterprises. It is critical that the industry operates to provide these functions for society in a stable, sustainable way.
Experiences of recent years have revealed a range of vulnerabilities of the financial system. Consequences of its functioning have been extremely costly to society and resulted in a significant loss of public trust and confidence in the financial system. An enormous, multi-year effort by policy-makers and financial institutions is underway to make the financial system more resilient and enable it to sustainably contribute to economic growth and prosperity. The regulatory community has strengthened oversight and prudential requirements as part of a global effort to overhaul and improve financial regulation.
Today, the Financial Services industry is subject to multiple and complex legal and regulatory compliance requirements that span international boundaries. Accenture’s Compliance Risk Study indicates that investment in the compliance function will continue to increase. Compliance officers will need to adapt their programs to navigate the disruption that the financial services industry is going trough. In fact the industry is facing disruptive forces in many forms, from changing customer behavior and the rise of digital technologies to a shifting regulatory landscape. New risks are emerging as well, many fueled by increasing challenges of fighting cyber-crime and others from managing more complex operations in today’s world. In order to respond to these challenges among others, the industry is taking a range of steps to change the way it does business. Improvements have also been made to business practices such as training, sales and product approvals, with increased penalties for breaching standards.
1. THE
EVOLUTIONOF
ADVISORYBOARDS
Inside
Insight and analysis into the
changing role of Advisory Boards
Join us for a roundtable discussion
– see back cover
DEMOGRAPHICAND
SOCIALCHANGE
REGULATION
CONSUMER
BEHAVIOUR
TRUSTAND
REPUTATION
DIGITAL
DISRUPTION
POLITICALINSTABILITY
BRINGING
THEOUTSIDEIN...
RESOURCERISK
Produced in partnership with
2. INTRODUCTION
BRINGINGTHEOUTSIDEIN–
THEEVOLUTIONOFADVISORYBOARDS
Advisory Boards have, of course, been around for years
but here at Salterbaxter and with our colleagues at Mondo,
we started to reflect that a change seems to be taking place.
It seems as if a growing number of companies
are creating Advisory Boards and engaging
external experts to help manage risk and
identify opportunity – helping to build
resilience amidst a complex and uncertain
business landscape.
All sorts of factors seem to be in play: the
constant rise in sustainability issues is
forcing business to rethink priorities and
processes, and is challenging their comfort
zones; the demand for transparency in
business requires an understanding of the
shifting sands of stakeholder expectations
and an ‘always on’ radar; the fact that
business is on the one hand liked less by
society than ever before and yet expected to
do so much more for society than ever before;
on the more positive side, it can also be that
business is really starting to sense that there
are opportunities for commercial success
and enhanced reputation by reaching and
connecting more to society’s issues,
challenges and needs.
Or, of course, a mix of all of the above.
Nigel Salter
CEO, SALTERBAXTER
MSLGROUP
Chair/Facilitator of several
Advisory Boards
Rufus Bullough
Partner
Mondo
Danielle Brown
Partner
Mondo
Advisory Boards add value to an organisation by
providing a good sounding board, inputting into
sustainability strategy, pushing boundaries and
mapping global trends.”
Peter Bakker
President – World Business Council for Sustainable
Development (WBCSD)
Advisory Board Member – Ikea, BASF, Nespresso, P&G
McKinsey have also just published some
interesting research in this area. In ‘How to
reinvent the external affairs function’, their
data shows that companies that have ‘a very
active approach to stakeholder engagement’
are more than three times as likely to succeed
in shaping government policy and/or
regulatory decisions that could affect
their business environments.
So, we definitely see something shifting,
with businesses feeling the need to
‘bring the outside in’.
But what form is this taking and how might
it evolve in future? Will Advisory Boards
become more formal and integrated, or will
they remain agile, enabling businesses to
respond to impacts with a more dynamic
and less constrained approach.
And how will they fit in with other more formal
management structures and processes?
It’s worth noting that a few people have
expressed concerns that Advisory Boards
don’t have the legal and accountability
framework that their Non-Executive Board
peer group have. With increasing pressure on
governance and transparency there is a need
to balance the rigour of formal processes,
with the flexibility of deeper independent
insight, provided by external experts.
Our research points to three phases in
the journey to Advisory Board maturity.
Although it’s also worth emphasising that
every business approaches this slightly
differently, with different issues and
different objectives. To help demonstrate
this we also have fascinating insight from
a few companies who actively use Advisory
Boards to good effect.
But this is really just the start of what
is likely to be an ongoing discussion.
So please see details of our first roundtable
discussion on this subject on the back
cover. We look forward to opening up the
debate a little more.
–– Advisory Boards are an external panel of
thematic and issue experts
–– They meet collectively and advise the CEO
and senior leadership about potential
risks and opportunities material to the
organisation, their stakeholders and how to
translate these impacts into practical
strategy
–– Advisory Boards provide an independent,
credible lens of insight, evidence and
assurance to filter risk, build resilience
and identify emerging opportunities
–– Advisory Boards are positioned alongside
the Non-Executive Directors (NEDs). NEDs
focus on corporate governance, Advisory
Boards focus on themes, impacts and
issues material to the business
–– Impacts can range from technology, health,
demography to urbanisation and the
environment
–– The value exists in the blend and collision of
disciplines. The Advisory Board provides
the first line of defence against the myriad
issues an organisation faces, before they
make an impact, often highlighting new
information significant to the business
–– Advisory Boards offer visible evidence that
the organisation is committed to engaging
with experts who represent relevant issues,
building dialogue and confidence with key
stakeholders
–– They are ‘critical friends’ who can challenge
and advise. All within an environment that
allows strategy to be tested and
challenged, prior to launching major
commitments, communications and
investment decisions
What are they?
3. RESEARCH/FINDINGS
We have examined a collection of the largest publicly listed
European businesses across 10 sectors for evidence-based
insights on the context surrounding Advisory Boards.
WHATWELEARNANALYSING
THEEUROPEANFT150
Composition
Whilst we accept there are exceptions to
the rule, the governance structure of an
Advisory Board is typically composed of:
Chair
–– Senior leadership representative,
often the Chief Executive Officer
Executive Committee
–– Corporate Affairs Director and a relevant
representation from the Executive
Committee, depending on impacts
under scrutiny
Facilitator
–– An independent external consultant,
ensuring structure and flow in
disseminating insight into strategy
Advisory Board members are typically
assembled from the following:
–– Corporates
–– Industry and Consumer Associations
–– Non-Governmental Organisations
–– Social Enterprise
–– Thought leaders
–– Academics
–– Regulators/Legislators
Size
Our analysis showed that the smallest
Advisory Board was made up of just four
individuals, the largest of 13, and an average
size across the 10 sectors of 7.2 members.
Frequency
In terms of frequency of meetings, we found
that Advisory Boards met on average 2-4
times per year.
Triggers
From our analysis we can deduce that there
are a multitude of reasons to trigger the
assembly of an Advisory Board. These can
be summarised (in no particular order):
Business model and/or digital disruption
–– An ‘Uber’ moment
Reputational management
–– Pre and post crisis
• Economic/Social/Environmental
• Sector specific
–– NGO pressure
Competition
–– Fear of a competitor taking the lead
and missing an opportunity
Growing Trend
Our research identified that two in three
(66%) of surveyed companies had an Advisory
Board, the majority being created in the last
five years. Companies are not obligated to
disclose information about Advisory Boards,
so we expect their prevalence to be even
higher.
Underlying Sector Issues
Our research indicates overarching issues
spanning all sectors. There are also particular
regional interests such as Africa for AXA and
Brazil for Danone. That being said, there are
material issues according to sector, and our
findings suggest the following connections:
Food – health, nutrition,
agriculture, food security
Beverage – water,
development, climate
change, sustainability
Retail – labour, equality,
human rights, circular
economy
Energy – policy, regulation,
low-carbon economy,
clean tech
Financial – economic
reform, financial inclusion,
cyber security, digital
disruption
Insurance – demography,
health, climate change,
consumer protection
Pharmaceuticals – health,
social enterprise,
environment, regulation
Chemicals – innovation,
technology, sustainability,
resource risk
Transport – environment,
technology, ethics,
urbanisation
Technology – technological
inclusion, cyber security,
behaviour change and
innovation
Influential Factors
Macroeconomics:
Our analysis demonstrates that there are
two significant prevailing themes that have
impacted the formation of Advisory Boards.
The challenges that the financial crisis has
imposed on the global economy, and the
speed of interconnectivity, have morphed
the business landscape meaning it has
become more uncertain and volatile,
prompting organisations to create risk
mitigation tools and build resilience.
Paradigms:
The increasing development of Advisory
Boards globally illustrates the rise in senior
stakeholder engagement and inherently
inward-looking Boards to look outward.
Advisory Boards play a critical role in
affording businesses a level of trusted,
credible and independent perspective
that they themselves cannot attribute.
Phases of Maturity
The complexity and uniqueness of individual
businesses, and their operating environment,
mean that there are many permutations of
‘Advisory Boards’. Our research indicates a
number of transitional stages until a mature
Advisory Board is established:
Phase I: Internal Committee
We often see organisations developing
capability from within, by creating internal
steering committees, often to support
individuals in the executive roles with a focus
on key issues and impacts of importance
to the business. Although beneficial, such
groups are typically limited in their ability
to provide unbiased, external expert opinion.
They illustrate an appetite for insight,
however feedback suggests that internal
viewpoints can be limited in the context
of perspective and best practice.
Phase II: Issue-led Panels
Organisations are increasingly creating
panels of external experts to advise around
specific issues. These issues are typically
operationally led and relevant to the specific
sector and business group. For example,
H&M has one focused on supply chain and
Nestlé has one focused on coffee. These
panels are useful in creating a group of
experts addressing and advising on specific
areas. They act strategically, but have
a clear mandate around one or two very
specific areas, thus advising the business
effectively on a smaller range of topics.
Phase III: Advisory Board
The most progressive organisations are
creating an Advisory Board of independent
experts each addressing themes and issues
material to their business. The board will
bring external independent advice to the
organisation which will strategically inform
the business both from a risk mitigation and
resilience side, to the business opportunity
and competitor advantage. It is not only the
independent expertise that informs, but
the experience of when these megatrends
and issues collide. These can range widely
from digital disruption and business model
transformation to migration and health.
4. EXTERNAL PERSPECTIVES
PROFESSIONALSVIEWSON
THEROLEANDEFFICACYOF
ADVISORYBOARDS
Dave Pearson
Chief Sustainability Officer
Deloitte Touche Tohmatsu Limited
Amy Fuller
Senior Managing Director, Global Brand
Deloitte Touche Tohmatsu Limited
table by simply leveraging its global
network, the group will be enhanced, when
needed, by a fully external perspective
from outside luminaries such as academics
or economists.
The SIAC is almost 12 months old, with a
plan to meet upwards of eight times per
year. But the impact is already being felt,
as Dave explains:
“It has been remarkable how quickly the
SIAC’s focus and agenda have evolved and
how much impact it has had in terms of
helping us to prioritise our activities and
rethink some of the societal impact
programmes we are trying to develop”.
Amy reinforces this: “The most striking
thing for me was just how quickly the SIAC
broadened our thinking on social impact,
helping draw connections between the
core of the business and social impact
programmes and finding unexpected
allegiances across geographies.”
Dave explains that the connection to the
business is also quite concrete. “The
insights we gain drive change quickly. Our
global network of corporate responsibility
leaders has benefited from the knowledge
and insights that the SIAC provides, and this
changes the focus of activity on the ground.
“In one instance we were providing an
update on our largest project – focusing
on the economic integration of refugees in
Europe – when one of our leaders from Asia
thought the project was so powerful that
he immediately asked how his member firm
could support it. It was a great response
(‘We want to help too! How can we help?’)
and Deloitte Global has already engaged
with them to look at how they can best
strengthen the efforts in Europe.
“On another occasion a senior leader
from Africa was outlining his member
firm’s efforts around women’s rights and
inequality. Immediately others throughout
the global network chimed in with examples
of their own and a demand to better
understand the great work we are achieving
worldwide in this area.”
The seniority and credibility of the people
on the SIAC is the key to its efficacy. It is, as
Amy says, “astonishing to see the level of
engagement and thinking, and amount of
knowledge gathered in one room around
these issues. The fact that the Global
Chairman presides over the SIAC, leads the
follow-up actions and personally takes the
lead in sharing the knowledge with others,
reinforces the mandate and the importance
of making an impact that matters.”
So the Deloitte model may be slightly
different because of the unique Deloitte
network structure, but the lessons learned
and the benefits that this sort of body can
deliver are still highly relevant.
Deloitte refers to one or more of Deloitte Touche Tohmatsu
Limited, a UK private company limited by guarantee
(“DTTL”), its network of member firms, and their related
entities. DTTL and each of its member firms are legally
separate and independent entities. DTTL (also referred to
as Deloitte Global”) does not provide services to clients.
Please see www.deloitte.com/about to learn more about
our global network of member firms.
This first session of AXA’s Advisory Board
exceeded my expectations. We came away
not only with some thought-provoking
insights but also a list of relevant action
items for us to take back to the business.
Expectations are high for our next session,
but I have no doubt the panellists will
continue to deftly push us farther in our
journey to provide even more ‘shared
value’ to society.”
Henri de Castries
Chairman and CEO
AXA
Advisory Boards fail when they don’t
have good, diverse representation; they
are not able to influence at senior level;
they do not have a clear remit; they are
not supported by relevant employees;
they don’t have a good Chair or leader.”
Julie McEver
Head of Investment & Social Enterprise
Local Partnerships
Advisory Board panel member of Lloyds Banking Group
When Advisory Boards work well, they
can be helpful. But their presence
should never be allowed to dilute the
responsibility and accountability of the
Board or to undermine the relationship
with the executive.”
Richard Sheath
Co-founder & Director
Independent Audit
A couple of notes of caution:
Given Deloitte’s business model, the
approach it takes for its global Societal
Impact Advisory Council (SIAC), isn’t quite
in the same mould as some external
advisory boards. But the drivers, objectives,
principles and insights for Deloitte’s council
are directly comparable to that of many
other businesses.
We spoke with Amy Fuller, Senior Managing
Director, Global Brand and David Pearson,
Chief Sustainability Officer to find out about
their approach and the impact it delivers.
In recent years, Deloitte has devoted
significant time and thought on how best
to live out its global purpose of ‘making an
impact that matters’. There are no shortage
of examples of the organisation engaging,
powerfully, with some of the world’s
toughest issues, but the question was
how to best leverage the good work and
commitment across so many local, regional
and global programmes. In order to better
understand how to deliver this impact
effectively in all parts of the world, Amy
and Dave felt the need to broaden their
engagement with the appropriate Deloitte
business leaders and stakeholders. A new
level and style of outreach allows global
leadership to better understand the issues
that matter most in different places and
how to generate attention at the top of the
organisation, among those leaders who are
often charged with telling the Deloitte story.
Hence, the Societal Impact Advisory Council
was formed. Chaired by the Deloitte Global
Chairman, the group consists of senior
leaders and subject matter specialists
from within the Deloitte network, selected
to represent a broad range of insight and
geographies. While Deloitte is able to bring
considerable diversity of thought to the
5. AT A GLANCE
7.2Average members on
an Advisory Board
Janet Voûte
Former Vice President,
Global Head of Public Affairs
The role of the Advisory Board is certain to
gain importance in the future. As companies
embrace the need to deliver both financial
and societal returns, and as Stock
Exchanges increasingly require both
financial and non-financial reporting, the
importance of expertise in specific social
issues is set to increase. The Nestlé
Creating Shared Value Council, that I had
the privilege to chair, serves just such an
advisory role and is comprised of experts
in nutrition, water, rural development,
sustainability and corporate strategy.
We will see more and more companies
setting up such advisory councils to advise
on issues of long-term sustainability.
JANETVOÛTEONTHEFUTURE
DIRECTIONOFADVISORYBOARDS...
SUMMARY
INAFASTCHANGINGWORLD,
FAILURETOBUILDRESILIENCE
LEAVESORGANISATIONS
VULNERABLEANDEXPOSED.
WHATOURRESEARCHHAS
INDICATEDISTHATTHEMOST
DILIGENTORGANISATIONS
AREUSINGADVISORYBOARDS
TOFILTERRISKANDIDENTIFY
EMERGINGOPPORTUNITIES.
The overall direction of travel seems to
be getting clearer. But, every organisation
needs to adopt a tailored approach fitting
specific needs.
66%
Of surveyed
companies have an
Advisory Board
2TO4Frequency of Advisory Board
meetings per year
5YEARS
The majority of
Advisory Boards
created in the last
5 years
6. About Salterbaxter
We help businesses and brands step
up to the challenge of the changing
relationship between business and
society. We combine smart strategy,
sharp insights and creativity to help
purpose-led businesses succeed.
Whether it’s communicating to
investors or opinion formers, engaging
employees or changing consumer
behaviour, our work delivers for our
clients in three key dimensions:
1. Purpose
Creating, defining, understanding and
building more purposeful organisations,
strategies, brands and communications.
2. Performance
Strategies to drive better performance
and communications to make this
performance transparent and trusted.
3. Transformation
Helping businesses and brands to
reinvent, find new models and drive
the changes needed to fulfil the new
contract between business and society.
Printed by CPI Colour, a Carbon
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Printed on Oxygen Offset which
is 100% recycled and FSC®/ISO
14001 certified paper.
CONTACT US:
Samuel Griffin-Flynn | Business Development
samuel.griffin-flynn@salterbaxter.com
Rufus Bullough | Partner, Mondo
rufus.bullough@mondoexecutivesearch.com
Danielle Brown | Partner, Mondo
danielle.brown@mondoexecutivesearch.com
HOSTS: Nigel Salter, CEO – Salterbaxter
Rufus Bullough, Partner – Mondo
Danielle Brown, Partner – Mondo
DATE: Friday 7 October 2016
TIME: 8.30am – 10.30am
WHERE: Salterbaxter, 82 Baker Street
London W1U 6AE
To reserve your seat please RSVP:
Samuel Griffin-Flynn samuel.griffin-flynn@salterbaxtercom
About Mondo
Mondo is an international
executive search consultancy.
We create Advisory Boards.
Our research capability gives us access
to the best individuals. Our expertise
and experience is in blending these
individuals into modern, dynamic
Advisory Boards.
We also support the Corporate Affairs,
Communications and Sustainability
functions with executive search services.
SALTERBAXTER MSLGROUP
82 Baker Street
London
W1U 6AE
Tel +44 (0)20 7229 5720
www.salterbaxter.com
@salterbaxterMSL
Executive Search | Advisory Boards | Benchmarking
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