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
How to get rich by investing in smoking hot US and Canadian dagga shares

How to get rich by investing in smoking hot US and Canadian dagga shares

Returns of 500% are not unheard of. Is this another crypto-like bubble? Not in the least, says Financial Advisor Warren Ingram.

Tax ombud to probe Sars – yet again - after taxpayers complain

Tax ombud to probe Sars – yet again - after taxpayers complain

The Money Show’s Bruce Whitfield interviews Adv. Eric Mkhawane, CEO at the Office of the Tax Ombud.

The businesses that boomed and went bust on Business Unusual

The businesses that boomed and went bust on Business Unusual

Predictions, products and personalities featured in "Business Unusual" in the last three years.

Hits from the bong (it’s legal!)… then off to work I go?

Hits from the bong (it’s legal!)… then off to work I go?

The consequences of consuming dagga at home and showing up at the office high. Bruce Whitfield interviews a labour lawyer.

The ANC cannot claim innocence - Mahlatsi Mahlase (Sanef)

The ANC cannot claim innocence - Mahlatsi Mahlase (Sanef)

The Money Show’s Bruce Whitfield interviews Mahlatsi Mahlase of the South African National Editors Forum (Sanef).

Solutionist Thinking: In Conversation with FirstRand's founders

Solutionist Thinking: In Conversation with FirstRand's founders

In the bonus episode of Solutionist Thinking with RMB, Bruce Whitfield speaks the founders of FirstRand, GT Ferreira, Laurie Dippenaar and Paul Harris.

Popular articles
'My hubby is 75 and we still do it' - stories about sex on the other side of 50

'My hubby is 75 and we still do it' - stories about sex on the other side of 50

Is biology putting the brakes on your sexuality? Callers share their experiences of sex and growing older.

How to get rich by investing in smoking hot US and Canadian dagga shares

How to get rich by investing in smoking hot US and Canadian dagga shares

Returns of 500% are not unheard of. Is this another crypto-like bubble? Not in the least, says Financial Advisor Warren Ingram.

[Watch] Dad breaks down when reunited with car sold to pay wife’s bills

[Watch] Dad breaks down when reunited with car sold to pay wife’s bills

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

DStv Premium on a downward spiral, warns tech guru

DStv Premium on a downward spiral, warns tech guru

DStv has lost about 140 000 Premium subscribers to Netflix over the past two years, tech expert Arthur Goldstuck.

[LISTEN] 'Lesufi has been attacking Afrikaans schools since 2014'

[LISTEN] 'Lesufi has been attacking Afrikaans schools since 2014'

The Freedom Front Plus says the Gauteng Education MEC has flouted school language policies and is destroying Afrikaans.

'We can barely enforce tobacco legislation, how will we to deal with dagga?'

'We can barely enforce tobacco legislation, how will we to deal with dagga?'

International law enforcement expert and former Drug Unit Commander Lobo das Neves says ruling opens a different can of worms.

Standard Bank's Ian Sinton implicates two cabinet ministers in state capture

Standard Bank's Ian Sinton implicates two cabinet ministers in state capture

Standard Bank’s head of compliance Ian Sinton told the commission two ministers bullied the bank not to close Gupta's accounts.