The recent New Zealand Rugby (NZR) boardroom wars highlight how difficult it is to inject fresh thinking and new blood into the governance status quo countrywide and how this can trap organisations in a cycle of ‘two steps backwards’ and stagnating innovation.
Adrian Packer, director of a specialist innovation leadership consultancy, IMS Projects (which works with some of New Zealand’s top organisations), warns that now is not the time for boards to default to the ‘same old’ cost-cutting and risk mitigation measures.
“Unfortunately, the traditional make-up of New Zealand’s boardrooms is dominated by finance and legal minds who are primarily risk averse.”
He says an economy in recession may seem the wrong time to call for a refresh of New Zealand’s boardrooms, but if boards continue to be dominated by conservative thinking, the country will only go backwards—more job losses, more asset sales and mired innovation.
“New Zealand now more than ever needs those in governance to refresh their thinking by looking for ways to generate new revenue opportunities through innovation. Jettisoning staff and assets will weaken those organisations and our economy while ensuring we continue to lag behind the OECD in innovation outputs.
“Innovation and new thinking are not just a nice-to-have; it’s essential for long-term survival.”
One of the challenges is that many organisations operate within silos, making it difficult to foster innovation.
“In our work within the innovation ecosystems of some of New Zealand’s biggest organisations, we see how important it is to break down these silos. We need pathways to facilitate fresh thinking and better collaboration—the boardroom can help make this happen. But it needs to change first.
Packer offers three practical steps organisations, and their boardrooms can take to enable collaboration:
1. Boardroom Diversity: Aim for new thinking and broader board representation—as NZRB is attempting—beyond traditional board compositions, e.g. accountants and lawyers. Diversity will make boards better informed about emerging things like technologies and trends.
2. Enable Collaboration: Encouraging cross-functional teams and breaking down departmental silos can lead to more innovative solutions. “Innovation should not be confined to a single department. It requires input from various parts of the organisation.”
3. Invest in Ecosystems: Instead of viewing innovation as an isolated activity, organisations should invest in ecosystems that facilitate the meeting of research and development. “Our goal should be to build ecosystems that connect startups and global developments with businesses, enabling them to adopt and benefit from these innovations.”
Packer also highlights the need for boards to rethink their strategies.
“Boards must think beyond traditional business models and consider how they impact ecosystems and pathways. Efficiency alone is not the answer; it’s about enabling different thinking and ensuring the right mix of skills to support this.”
Ultimately, the goal is to both generate immediate financial returns from innovation initiatives but also to facilitate the integration of research and development, creating long-term value for organisations.”
ENDS.
