Volume 2, Issue 1, May 2004

TABLE OF CONTENTS

COVER STORY
Kicked for Touch: How compliance killed strategy at Air NZ and the NZRFU
Who does strategy? International corporate governance expert Mervyn King says it doesn’t really matter as long as someone does it. According to Massey University’s James Lockhart a critical point in the spectacular corporate failure of Air New Zealand was that, incredibly, no one was taking care of strategy. Lockhart examined organisational failure at Air New Zealand and the New Zealand Rugby Football Union for a presentation to the McMaster World Congress in Ontario earlier this year. This is an edited, condensed version of his paper.

BEST PRACTICE
Fonterra’s Model of Good Corporate Governance
Fonterra Co-operative Group’s birth in 2001 was not without complications. Its large, dairy farmer-dominated board, oversized constitution and, not least, cooperative structure raised serious questions about whether it was capable of running a global dairy business successfully and sustainably.

GOVERNANCE & MANAGEMENT
Flying United: How John Palmer and Ralph Norris co-pilot Air New Zealand
They are much the same age, have banking backgrounds, share the same leisure pursuits, and have similar outlooks on life. It is, therefore, hardly surprising that Air New Zealand’s chairman of the board, John Palmer, and chief executive, Ralph Norris, spoke the same organisational language before they ever met to join forces at New Zealand’s troubled national airline.

DIRECTING EDUCATION
Tertiary Sector Governance: Will a private sector model work?
Plans to beef up governance in tertiary education institutions have run into some flak. What are the issues and how do they differ from those in the private sector?

GOVERNANCE LAW
Principles in Place – What law changes will follow?
In September 2003, the Securities Commission sought submissions on nine key issues relating to corporate governance. The Commission’s inquiry resulted in a report entitled Corporate Governance in New Zealand – Principles and Guidelines. It sets out nine “principles” of corporate governance, each accompanied by a set of guidelines which are intended to elaborate on how an organisation can implement the principles, key findings arising from the consultation process and the Securities Commission’s view on each principle.

plus

EDITOR'S LETTER
• Strategy Vs Compliance

TABLED
• The Diplock “Principles”
• Paid to Perform

BOOK REVIEW
• The New Financial Order – How to Manage Risk in the 21st Century