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Good advice creates better companies |
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Victoria University of Wellington
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Wednesday, 01 October 2008 |
Good advice may be the key to a company's
success, he report has found.
Image: iStockphoto
Advisory boards and boards of directors have a significant role in managing and creating value for emerging high performing, high growth firms in New Zealand, according to a report principally authored by Victoria's Professor of Entrepreneurship Mark Ahn.
The report, released in September by Deloitte and Grow Wellington's business incubator, Creative HQ, was the result of interviews and case studies with more than 300 Deloitte/Unlimited Fast 50 companies to identify common factors in success and specific growth strategies.
Professor Ahn says that much of the attention of boards and directors was on compliance and regulation, but the true value was derived from completing this with contacts and content.
"Supplier, customer, and investor networks, together with the experienced and tacit strategic knowledge on advisory boards are all crucial in creating sustainable high performing, high growth companies. Compliance provides the basis for accessing contacts, which in turn provides the basics for exploring context or strategy development. This is all tightly bound together by a high level of collaboration between management and boards."
Research results showed that 73 per cent of companies had either advisory boards or boards of directors, though only a small number were required to have boards in place. Ninety-eight percent cited strategic planning as "important" or very "important" roles for board members, and strategy development was ranked twice as important as any other board level activity.
More than half of the participants indicated that their boards provide a "very high" or "high" influence on creating firm value through compliance, industry contacts, and strategic advice.
Click here to view the full report.
Editor's Note: Original news release can be found here.
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