Boards tend to have an easier time ensuring effectiveness and preserving value than to drive for performance, often delegating to management. With global competition intensifying and the speed of change accelerated by digitalisation and other disruptions, boards increasingly need to take the lead in orchestrating and driving for performance. Boards that impose a "performance" culture unlock performance potential, pre-empt the activist attack, reduce risk and competitive threats, and enjoy greater strategic independence.
Professor Ludo Van der Heyden facilitated a discussion on what boards can do to engage management on such a "performance driving" mandate - one that resolutely drives out "satisfactory underperformance." Dr. Edward Krubasik, an active Chairman with more than 20 years of turnaround experience, joined Ludo to address the following topics:
- How performance driving boards search for signs and causes of non-performance
- How such boards prevent their companies from sliding into a crisis
- How boards build a sustainable performance advantage by combining better practices from global competitors
- How this drive for performance makes companies more robust and reduces the surprise of "sudden" market, technology or competitive threats
Ludo Van der Heyden is the founding Director of INSEAD's Corporate Governance Initiative and INSEAD Chaired Professor in Corporate Governance. His teaching focuses on governance, leadership, team dynamics, fairness in business and society, and innovation. Ludo was INSEAD Dean from 1990 to 1995. He was the first holder of the Wendel Chair in the Large Family Firm and the Solvay Chair in Technological Innovation. Ludo has won many prestigious awards as well as published in many leading journals such as the Harvard Business Review. His latest publication in the Journal Business Compliance is Fair Governance: Setting a tone of Fairness at the Top. He recently co-authored a survey on The Real Impact of Digital in organisations, followed by Directing Digitalisation, which enumerates the implications on boards.
Besides his academic role, Ludo serves as a member of the Advisory Board of Bencis Capital Partners, and the Supervisory Boards of two start-ups, Celpax and Seisquare.
Edward G. Krubasik had built a distinguished career as a Partner and Director at McKinsey & Company for over 20 years in USA and Europe, before moving on to assume governance roles on Supervisory Boards and Corporate Councils with Siemens AG and many listed companies in Germany, France, USA, and Japan. Since 1998, Edward has been a Member of the Board of Dresdner Bank and later of the Central Advisors Council of Commerzbank, Frankfurt, of Stinnes AG, Essen, of KSB AG, Frankenthal, and of Covisint Corp., Detroit/USA. Since 2007, he has been Member of the Board and Chairman of the Strategy Committee of Vallourec SA, Paris, and ASAHI TEC Corp., Tokyo.
Elected President of the German Physics Society in April 2015, Edward also serves as Honorary Professor at the Technical University of Munich, Director in Residence at INSEAD Fontainebleau, France, and Honorary Senator of the University of Erlangen-Nuremberg. He is a member of the Board of the Cultural Foundation of German Industries and the School for Music and Theatre, Munich.
- Board Chairs and Non-Executive Directors of publicly listed, private and non-profit corporations
- Government agency representatives
- Social enterprise representatives
"This session crystalised the issues in a systematic and thoughtful manner. The use of relevant materials by international experts also facilitated high-quality discussions."
Amy Lee, Non-Executive Director, Clifford Capital Pte Ltd
"This is an excellent forum that is useful not only to new directors but also experienced directors. I would highly recommend this forum to all directors who are looking to create high performing boards."
Ted Tan, Deputy Chief Executive, SPRING Singapore
"This is a session based on practical experience and not theoretical or pedagogical concepts."
Tan Guong Ching, Chairman, STT Communications Ltd