The Science Of ... , Evergreen Content

How ‘mature’ leaders create value (and how destructive immature one always are)

Many businesses are guilty of “ticking boxes” when it comes to governance issues.

Some get on the “sustainability reporting” bandwagon merely to look good.

So says Rob Worthington-Smith, founder of FarSightFirms.

FarSightFirms analyses and provides a rating of the maturity of a company’s leadership.

It does so in the belief that there’s a link between mature leadership and lasting value creation.

Building value requires a leader to:

  • Engage with stakeholders, understand concerns and put it in context for the business.

  • Take personal accountability.

  • Manage the tough issues facing the business through relevant, comparable KPIs.

  • Put together a strategy that works to resolve these challenges competitively.

The FarSight model is a simple rating (consisting of 96 data points) of how well a leader responded to a challenge.

What makes for a mature, value-creating leader?

  • A good leader does not avoid addressing tough issues.

  • She admits shortcomings and identifies where she can improve or innovate.

  • She then drives these improvements from the top of the organisation.

  • She reports openly, so she is held accountable.

What makes for an immature, value-destroying leader?

  • She sweeps issues under the carpet, or sticks her head in the sand.

  • She rushes into dubious behaviour regardless of the risks, or sticks her head in the sand.

  • She reports with a combination of virtue-signalling or box-ticking.

The Money Show’s Bruce Whitfield interviewed Worthington-Smith for his weekly “The Science Of” feature.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

It’s not about being goody-goody… It’s all about the ability of society to put restrictions on you…

Rob Worthington-Smith, FarSightFirms

If you’re a retailer… the financial health of your customers are important…

Rob Worthington-Smith, FarSightFirms

Let’s take listeriosis… Tiger Brands, effectively, said nothing… We were more looking at the nutrition of their food… They have this wellness program which is really properly deceptive… If you’re misleading there...

Rob Worthington-Smith, FarSightFirms

Astral acknowledged that the regulatory environment wasn’t tough enough…

Rob Worthington-Smith, FarSightFirms

I saw it [Steinhoff], but only by association with the general quality of reporting... We saw little evidence [of relationship building] in their report…

Rob Worthington-Smith, FarSightFirms

Really, it’s common sense… if you’re going to manage an issue… understand it, and hold yourself accountable… use proper performance indicators… For example; don’t only measure fatalities, but also near-misses…

Rob Worthington-Smith, FarSightFirms

I’m going to be watching for honest disclosure in banking reports.

Rob Worthington-Smith, FarSightFirms

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our mailing list

* indicates required

Recommended

by NEWSROOM AI
Read More
2 red-hot JSE-listed shares to buy, right now (by Ashburton)

2 red-hot JSE-listed shares to buy, right now (by Ashburton)

The Money Show’s Bruce Whitfield interviews Suvasha Kander, a Fund Manager at Ashburton.

Let us do something unusual which will annoy the establishment – Tito Mboweni

Let us do something unusual which will annoy the establishment – Tito Mboweni

Bruce Whitfield asks Kevin Lings (Chief Economist at Stanlib Asset Management) for a preview of next week’s "mini-budget".

Ramaphosa sets cut-off date for plan to fix collapsing public healthcare system

Ramaphosa sets cut-off date for plan to fix collapsing public healthcare system

The Money Show’s Bruce Whitfield interviews Dr Nicholas Burger, a Healthcare Consultant at Frost & Sullivan.

Hillary and Bill Clinton, Caster Semenya at Joburg's Discovery Leadership Summit

Hillary and Bill Clinton, Caster Semenya at Joburg's Discovery Leadership Summit

The Money Show’s Bruce Whitfield interviews Jim O'Neill, a former chairperson at Goldman Sachs Asset Management.

How to have a good day

How to have a good day

Forbes and Inc. call “How to Have a Good Day” a “top must-read business book”. Bruce Whitfield interviews author Caroline Webb.

'I’ve never invested in the stock exchange. I know it too well'

'I’ve never invested in the stock exchange. I know it too well'

Bruce Whitfield interviews Prof Lorenzo Fioramonti (UP) about his attitude toward money (hopes, fears, successes, failures, etc.).

Popular articles
Feasibility study for Gautrain expansion completed but no approval yet

Feasibility study for Gautrain expansion completed but no approval yet

MEC for Transport Ismail Vadi says the feasibility study has been submitted to Treasury for consideration and formal approval.

Magashule has never taken responsibility for anything says Mxolisi Dukwana

Magashule has never taken responsibility for anything says Mxolisi Dukwana

Dukwana accuses Magasshule of taking him to Saxonwold and asking him to sign a project over to the Guptas for R2 million a month.

Judge in Omotoso case dismisses defence application to recuse himself

Judge in Omotoso case dismisses defence application to recuse himself

Judge Mandela Makaula has dismissed the defence application saying it has no merit.

Lebelo's lawyer refuses to give evidence at Nugent Commission

Lebelo's lawyer refuses to give evidence at Nugent Commission

EWN Reporter Barry Bateman gives the latest on what is happening at the Nugent Commission of Inquiry into Sars.

'As long as I'm mayor, I'm not going to sit back and watch criminals take over'

'As long as I'm mayor, I'm not going to sit back and watch criminals take over'

City of Johannesburg Executive Mayor Herman Mashaba says criminals cannot be allowed to threaten service delivery in the city.

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone Viral'.