Nurturing for Fonterra golden boys

Fonterra's Shareholders' Council has named seven North Island dairy farmers to go on a fast-track training programme as prospective directors of the company.

Each will be coached for up to two years through university courses, study tours and membership of professional groups.

The "advanced training programme" to boost the leadership capabilities of individual farmers is designed to create a pool of talented shareholders with skill suited to leadership of the nation's biggest business, a farmer co-operative.

"This is pretty much a world first and certainly a New Zealand first to go out and deliberately attempt to attract and identify the best leadership talent available and then contribute towards their personal development," said Shareholders' Council chairman Tony O'Boyle.

A total of 214 of Fonterra's 13,000 farmers were judged eligible, through being a past or current Shareholders' Council member, previous director of the New Zealand Dairy Group (NZDG) or Kiwi Dairies, or having completed a council introductory training programme available to all shareholders and suppliers. Sixty-two applied.

The seven farmers selected are:

* Malcolm Bailey of Feilding, a Shareholders' Council member and former Federated Farmers president and agricultural trade ambassador for the Government.

* Graeme Edwards, of Leigh, deputy chair of the Shareholders' Council.

* Colin Holmes of Murupara, a former NZDG supplier and Bay Milk director.

* George Moss of Tokoroa, chairman of the Great Milk Company, which was rebuffed by Fonterra in its bid to exercise farmer control of New Zealand Dairy Foods, even though it matched the price paid by food magnate Graeme Hart.

* Kingi Smiler, a Wellington accountant who worked as a financial and management consultant following a business career in New Zealand and Canada, and was a member of the boards of the Aotearoa Maori Tourism Federation, the Wellington Tenths Trust and the Wool Research Organisation. He chaired the Mangakino Incorporation, which has sold much of the town to an entrepreneur.

* Michael Spaans of Te Aroha, chairman of the Shareholders' Council's performance committee.

* John Wilson of Te Awamutu, who also owns a farm at Geraldine and stepped down after only five months as chair of the Shareholders' Council on the grounds that he could not give a long-term commitment to the job.

"These people are motivated and committed shareholders who want to better equip themselves with the knowledge, skills and personal attributes they need to be an industry leader," O'Boyle said.

The council appointed Deloitte Human Capital to select the farmers with the best leadership potential, and O'Boyle said they were evaluated against competencies seen as useful for Fonterra directors and farmer councillors.

The applicants were interviewed over the telephone and in person, and underwent psychometric testing and "development centre" individual and group exercises.

"We had no pre-conceived ideas as to how many would come through the process, but are confident that it has identified the best possible available talent," O'Boyle said.

Another human resource consultant, Sheffield, would deliver the training programme.

"They will each be assigned a coach by Sheffield and will agree on personal development objectives tailored to their individual needs identified by Deloitte Human Capital," he said. "The coach will then establish a one- to two-year plan to meet those objectives."

The plans could include projects, formal learning such as university courses, self-directed activities, membership to professional organisations, study tours and governance opportunities.

The next introductory training programme is next month and is already full with 30 participants. Another one is planned for May, but the Shareholders' Council has not decided when it will run another selection process for advanced training.

"Our biggest challenge is still to come," O'Boyle said, "and that is lifting the level of understanding in the general shareholder base so farmers know what competencies they should be looking for when choosing their future leaders."

- NZPA