The recent boardroom issues within New Zealand Rugby (NZR) have shone a light on the challenges of bringing fresh ideas and new talent into the governance structures of our organisations. This situation highlights how sticking to the status quo can lead to a cycle of setbacks and stifled innovation.
I’m Adrian Packer, and I direct IMS Projects, a specialist innovation leadership consultancy. We work with some of New Zealand’s top organisations, and I believe now is not the time for boards to resort to familiar cost-cutting and risk-averse measures.
The traditional makeup of New Zealand’s boardrooms tends to be dominated by finance and legal experts, who are often primarily focused on minimising risk. While this approach has its merits, an economy in recession is the right time to refresh our boardrooms. Sticking to conservative thinking could mean more job losses, more asset sales, and stalled innovation.
New Zealand needs its leaders to embrace fresh thinking and seek new revenue opportunities through innovation. Cutting staff and assets will only weaken organisations and the economy, keeping us behind in innovation compared to other OECD countries. Innovation isn’t just a bonus; it’s crucial for long-term survival.
One major challenge is that many organisations work in silos, making innovation hard to achieve. At IMS Projects, we see the importance of breaking down these silos to foster new ideas and better collaboration. The boardroom plays a vital role in this but needs to change first.
Here are three practical steps that organisations and their boardrooms can take to foster collaboration:
1. Boardroom Diversity: Strive for a broader representation on boards beyond the typical accountants and lawyers. Diversity brings new perspectives and keeps boards informed about emerging technologies and trends.
2. Enable collaboration: Encourage cross-functional teams and break down departmental silos to develop more innovative solutions. Innovation shouldn’t be confined to one department; it requires input from all areas of the organisation.
3. Invest in Ecosystems: Treat innovation as a part of a broader ecosystem, connecting research and development with businesses. Building ecosystems that link startups and global developments can help organisations adopt and benefit from new innovations.
Boards also need to rethink their strategies. They must look beyond traditional business models and consider their impact on ecosystems and innovation pathways. Efficiency isn’t the only answer; enabling new ways of thinking and ensuring a diverse mix of skills is crucial.
The ultimate goal isn’t just immediate financial returns from innovation initiatives. It’s about integrating research and development to create long-term value for organisations.
In summary, the turmoil at NZR highlights a broader issue in Kiwi boardrooms. By embracing diversity, encouraging collaboration, and investing in innovation ecosystems, New Zealand can move forward and thrive.