Chambers, Associations and Independent Directors – are you independent?

Sri Lanka will celebrate its 60th independence with fanfare, gun salutes, military parades, religious celebrations, and independence messages from the nation’s leaders. Chamber leaders will feature in these in many ways. Special supplements and media presentations focussing on the private sector’s role, the Chamber leaders’ critique on the state of the nation and the way forward are likely to be published.

A young analyst owl (YAO) approached the wise old owl (WOO) in a pensive mood sitting atop the cross bars of the Independence Hall Monument building having just completed a TV interview on the state of the nation and the way forward strategy. The YAO asks the WOO - “After sixty years are Chambers, Associations and Independent Directors, really independent”?

WOO responds -” Their independence is entirely and directly linked to the independence, integrity, professionalism, character, values, and commitment of persons who occupy key decision making positions in these institutions”. “A key influencing factor is the level of dependence of the businesses of these leaders and persons, for the growth, profitability and even survival, on the leaders of the nation and the key decision makers in governance”. “The other end of this pyramid is influenced by the level of dependence demanded and leveraged by the leaders of the nation and the key decision makers in governance for their personal benefit and agenda”.

YAO concludes that in its research findings, even after sixty years Chambers, Associations and Independent Directors are not really independent. The leaders of Chambers and Associations depend on the goodwill and network of the nation’s leaders and key decision makers in governance for the growth, profitability and even survival of their business organizations. The leaders of the nation and the key decision makers in governance demand and leverage the dependence and network support of the leaders of Chambers and Associations.

Meritocracy, need satisfaction and capability are not the key criteria in democratically electing to office bearers of Chambers, Associations and also Independent Directors. The nation’s leaders and even members are averse to outspoken and independent persons taking up key roles in Chambers.

The following best fit criteria are not generally demanded, nor entirely satisfied in the election of leaders of Chambers, Associations and Independent Directors;

- Proven Integrity; Unblemished Character; High intellectual ability; Mental and physical fitness.

- A continuing interest in business, especially the development and growth of the nation and the private sector within the operating business environment

- A good knowledge and assessment of the external environment (both local and global) and its challenges on the nation and the private sector

- Strategic, logical, analytical and critical thinking ability, including out of the box solutions/new paradigms

- Attuned to continuous learning and seeking market information and knowledge

- Fair and Just disposition, and 360 degree span of decision support view

- A team player and develops successors; Proven leadership qualities

- An effective mediator in situations of conflict; Always driven by accepted values, norms and principles

- A proven track record of Good Governance; Apolitical

- An effective mentor, guide and guru and never a manipulator

- A well endowed network mainly in public services, regulatory, media etc

- Having sufficient time and interest to focus on the expected role and not overly stretched with similar commitments

- Ready to express opinions publicly and argue that point of view; Always placing the interests of the nation and the private sector and its stakeholders first and a apriority above all else

-The creation of trust and candour; Fostering open dissent; Use of fluid portfolio roles

-Ensure individual accountability; -Evaluate performance.

WOO commends these valuable research findings and reminds YAO of what a leading visionary academic had to say recently in a BBC interview, contradicting a key Regulator, that the recent crisis in the sub prime mortgage market and in France by the actions of a rouge trader were not driven only by a lack of an effective operating regulatory framework, but due to a “Crisis in Morality and Ethical Behaviours” driven by;

- The lack of emphasis on morality, integrity, ethical behaviours and values in the selection, development, supervision and rewarding as a part of talent management

- The lack of genuine commitment to values and ethical behaviours in management of businesses

- The failure of leaders of business to live their personal lives as “Role Models”, in strict conformity with accepted values and ethical behaviours

It is a time for Chambers, Associations and Directors and Shareholders to reflect on challenges of leadership.