The US is co-ordinating collection of responses to an international survey of directors. Photo / 123RF
The US is co-ordinating collection of responses to an international survey of directors. Photo / 123RF
New Zealand directors will be able to see how their Covid-19 governance response stacks up against overseas counterparts soon due to the Institute of Directors' part in a global survey.
The IoD, as part of the 21-country Global Network of Directors, has launched an online survey of its members, whichwill ask the same questions of more than 150,000 overseas directors on how they've handled the pandemic crisis.
Felicity Caird, general manager of the IoD's governance leadership centre, said the US is co-ordinating collection of the worldwide survey data, and results will be known later in the year.
It's a comprehensive survey asking directors about the impact on the governance of their companies and organisations and how they've dealt with the challenges, she said.
It's the second global survey the New Zealand IoD has taken part in. New Zealand co-ordinated the first one in which it participated.
"It will be very useful for information on not just what New Zealand directors are doing, but other countries. We'll keep it open for a couple of weeks."
The global network was a major source of governance best practice information for the New Zealand institute, Caird said.
Institute of Directors' executive Felicity Caird. Photo / Supplied
New Zealand was closest to its member country counterparts in Australia, the US, UK and Canada but the European and Asian elements of the network also offered synergies and knowledge to be shared.
New Zealand had been one of six countries recently featured in the US institute's magazine, and was noted for its strong leadership in the Covid-19 challenge.
"There's a lot of envy of New Zealand leadership and how united we are as a country," Caird said.
Back home, the biggest change in governance practice Caird had seen was a move to online - and much more frequent - meetings.
"They're not necessarily whole day meetings but there's been a need to get together more often, for example for weekly updates with management rather than monthly - they need to support and engage with management more.
"We know directors are spending a lot more time on board work and meeting more frequently with each other and management."
The huge challenge of trying to plan under a Covid-19 pandemic had underlined the power and value of a collective, which is what a board was, Caird said.
"It's of real value when looking at risk and opportunities. A lot of businesses have had to pivot to offering business and service in different ways."
Caird agreed that Covid-19 had strengthened the argument for family companies, or companies considering exporting, for example, to appoint independent directors.
"The value that independent thinking brings to a board (or company) is one of the critical underpinnings of good governance. Having those diverse perspectives of thinking around the table to help drive a business forward sustainably in immediate and long-term challenges. There's a lot of research to support that."
The IoD itself had also been adapting, Caird said.
Its immediate focus in the first lockdowns had been to quickly make available tools and guidance for financial management to members and non-members - now it had shifted to online, member education courses that used to require physical attendance.
Another pandemic lesson for many directors was that business could be accomplished without the same requirement to travel, said Caird.
"Many directors have to travel a lot, here and overseas. There are still benefits in having face-to-face meetings but this has shown it's not necessary all the time, for every meeting.
"The survey will give us more insight on whether this will continue."
The new survey would give more insight into whether that trend would continue.