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.
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:
Meet Alex Thomson of Naked Insurance, a high-tech company with vastly lower operating costs than most traditional insurers.Read More
The Money Show's Bruce Whitfield interviews Pieter du Toit, author of "The Stellenbosch Mafia: Inside the Billionaires' Club".Read More
The Money Show's Bruce Whitfield hosts a debate on NHI between Paul Theron (Vestact) and Russell Rensburg (Wits).Read More
Ever dreamt of just doing it? You may want a few pointers from someone who did. Meet Callan Williamson of Tortilla Modern Mexican.Read More
The Money Show’s Bruce Whitfield interviews Ketso Gordhan, CEO at SA SME Fund.Read More
Bruce Whitfield interviews Chris Burgess, Editor-in-chief at Landbouweekblad, South Africa’s legendary magazine about farming.Read More
The Money Show’s Bruce Whitfield interviews Nicole Westwig, Managing Director at Marcel's.Read More
The Money Show’s Bruce Whitfield interviews Andrew Papadopoulos, Trade Mark Attorney at KISCH IP.Read More
The Rosslyn plant makes 15 BMW X3 SUVs per hour for export around the world. Bruce Whitfield interviews BMW SA's, Tim Abbott.Read More
The Money Show’s Bruce Whitfield interviews Jared Molko, a former employee at Google.Read More
Saving money on boring stuff such as a car can allow you to do really outrageous and courageous stuff, says Sam Beckbessinger.Read More
'Marketing' is not 'sales'. It’s not noise. It's a science, and you must get it right, says Pavlo Phitidis.Read More
The Money Show’s Bruce Whitfield interviews Morbee about his attitude to money (hopes and fears, successes and failures, etc.).Read More
Small business guru Pavlo Phitidis on the basics of building a resilient business. He gives clear guidelines for getting it right.Read More
Bruce Whitfield interviews Phillip Retief, CEO at Van Loveren Vineyards, the origin of the SA's top-selling wine, "Four Cousins".Read More
Bruce Whitfield interviews Darren ‘Whackhead’ Simpson about his attitude to money (hopes and fears, successes and failures, etc.).Read More
The Money Show’s Bruce Whitfield interviews athlete about his attitude to money (hopes and fears, successes and failures, etc.).Read More
About 20% of every rand spent in South Africa goes to informal stores, mostly foreign-run. GG Alcock on his book “KasiNomics".Read More
Bruce Whitfield interviews Williams about her transformative business delivering quality cookies to hotels and Pick n Pay.Read More
The Money Show’s Bruce Whitfield interviews small business guru Pavlo Phitidis, founder of Aurik Business Accelerator.Read More