Much noise about "executive coaching" (eventually) improving business performance and impacting retention of senior leaders. Several "global" companies are including "executive coaching" as a part of the executive remuneration package. While I haven't heard of instances where coaching has not worked, there do not seem to be too many success stories around either.
Personally, the managers and leaders I have coached over the past several years claim to have found value from the association - not as much to improve their performance but more to do with having a sounding board to their ideas and strategies. Is executive coaching something that should be ingrained into the leadership development DNA?
Friday, June 27, 2008
Thursday, June 26, 2008
Remunerating NEDs - changed expectation
There is much greater "risk" associated with being a member of the Board than ever before. Role and expectations of the non-executive directors (NEDs) are evolving to be much more engaged with the company's culture, strategic direction, leadership development and compliance. These changes are driving the remuneration model for NEDs as well as the professional expertise required of NEDs.
Experienced, vigorous and genuinely independent non-executive directors, as one of the most important and effective safeguards against harm in a free-enterprise system. Investors will not have confidence in companies or the capital markets, unless they trust the governance structure and culture of companies and markets.
Given the integral role that independent non-executive directors play in corporate governance arrangements, it is essential that the office of a non-executive director remains attractive to experienced and skilled individuals. It is in the interests of companies, shareholders and the capital markets that non-executive directors are remunerated appropriately.
Although non-executive directors should clearly be accountable, the role should not be overburdened with excessive or unreasonable legal liabilities and other risks which discourage competent individuals from contributing to keeping corporate processes open, prudent and trustworthy.
Board remuneration is shifting away from "fixed term" fee to participate in meetings toward a pure retainer approach to compensate for involvement. Greater differentiation in compensation for committee service to recognize the unique qualifications and responsibilities associated with
certain roles, such as audit committee membership.
So the question is - how should the remuneration be structured to drive the expected outcomes from the boards of the future?
Some of the cool things that are working for several companies are:
- Less reliance on stock options and greater use of full-value equity
vehicles
- Committee chair meeting fees as different from committee member fee
- Fee associated with a specific role - e.g. Driving the Leadership Philosophy or Setting the vision of succession management
Other best practices are welcomed
Experienced, vigorous and genuinely independent non-executive directors, as one of the most important and effective safeguards against harm in a free-enterprise system. Investors will not have confidence in companies or the capital markets, unless they trust the governance structure and culture of companies and markets.
Given the integral role that independent non-executive directors play in corporate governance arrangements, it is essential that the office of a non-executive director remains attractive to experienced and skilled individuals. It is in the interests of companies, shareholders and the capital markets that non-executive directors are remunerated appropriately.
Although non-executive directors should clearly be accountable, the role should not be overburdened with excessive or unreasonable legal liabilities and other risks which discourage competent individuals from contributing to keeping corporate processes open, prudent and trustworthy.
Board remuneration is shifting away from "fixed term" fee to participate in meetings toward a pure retainer approach to compensate for involvement. Greater differentiation in compensation for committee service to recognize the unique qualifications and responsibilities associated with
certain roles, such as audit committee membership.
So the question is - how should the remuneration be structured to drive the expected outcomes from the boards of the future?
Some of the cool things that are working for several companies are:
- Less reliance on stock options and greater use of full-value equity
vehicles
- Committee chair meeting fees as different from committee member fee
- Fee associated with a specific role - e.g. Driving the Leadership Philosophy or Setting the vision of succession management
Other best practices are welcomed
Cool trends in hiring (smarter)
Professional job portals - the next "in thing" in recruitment & cost modeling - the gaining popularity of monsters and linkedin aside, several companies have factored in non-traditional (traditional = recruiter based search) sources to attract talent / hire into their business plans. US Fortune 500 and top 100 tech sector companies in Asia show a clear "shift" to using professional networks to source new hires - even for senior positions.
What's been your experience so far as HR Leaders? - In my organization, we were able to cut the recruitment budget by 50% during fiscal 2007-8 and yet be able to meet the hiring needs - just through effective deployment of job portals (most of them costing a few hundred $ for full membership). We were able to redeploy those funds for development planning and some cool employee work life betterment services.
For those in the (traditional) recruitment business, how is the business model changing?
What's been your experience so far as HR Leaders? - In my organization, we were able to cut the recruitment budget by 50% during fiscal 2007-8 and yet be able to meet the hiring needs - just through effective deployment of job portals (most of them costing a few hundred $ for full membership). We were able to redeploy those funds for development planning and some cool employee work life betterment services.
For those in the (traditional) recruitment business, how is the business model changing?
Wednesday, June 25, 2008
Welcome HR Directors (and those who are not from HR are welcome too)
Hi - This club is for those tough minded, resilient, hard working, passionate leaders in HR who are relentlessly pursuing the goal of delivering true value from this function.
There is a mob out there that still believes HR is a waste of time and does not add value, CANNOT be a business partner, promotes the philosophy that HR should be invited to the table only when there is no choice etc. etc.
However there is also another mob out there - a mob of die hard HR leaders who are innovating with strategy, creating new and out of the box solutions, championing business transformation, introducing wild, wild, wild ideas - that work, that create better employee and customer experiences etc. etc.
The idea is to get these die hard HR Leaders to share & collaborate best practices and use the forum as a sounding board for more wild ideas - that work. And at the same time, keep it fun.
I've been somewhat impulsive in calling it Evil HR Directors Club - but this club is definitely not restricted to HR Directors only. The "evil" thing is a bit of a paradox. I have been honored with the (evil) title as HR Director myself but have also tasted the other side - when wild, wild, wild ideas change the perception of evil to good. (Due credit to my colleagues who with pun intended, pointed out similaries between me and Catbert and in a way, motivated me to name this blog what it is)
That's what this club is about - changing perceptions of evil to good to great to cool.
Feel free to ask questions, raise issues, share challenges or best practices in any sub discipline of HR. And if you have a wild, wild concept or idea for making HR really cool, please share.
There is a mob out there that still believes HR is a waste of time and does not add value, CANNOT be a business partner, promotes the philosophy that HR should be invited to the table only when there is no choice etc. etc.
However there is also another mob out there - a mob of die hard HR leaders who are innovating with strategy, creating new and out of the box solutions, championing business transformation, introducing wild, wild, wild ideas - that work, that create better employee and customer experiences etc. etc.
The idea is to get these die hard HR Leaders to share & collaborate best practices and use the forum as a sounding board for more wild ideas - that work. And at the same time, keep it fun.
I've been somewhat impulsive in calling it Evil HR Directors Club - but this club is definitely not restricted to HR Directors only. The "evil" thing is a bit of a paradox. I have been honored with the (evil) title as HR Director myself but have also tasted the other side - when wild, wild, wild ideas change the perception of evil to good. (Due credit to my colleagues who with pun intended, pointed out similaries between me and Catbert and in a way, motivated me to name this blog what it is)
That's what this club is about - changing perceptions of evil to good to great to cool.
Feel free to ask questions, raise issues, share challenges or best practices in any sub discipline of HR. And if you have a wild, wild concept or idea for making HR really cool, please share.
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