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ARNO KITTS – SESSION CHAIRCRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
PLSA DB COUNCIL
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CHRIS HOGGCRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
CHIEF EXECUTIVE, ROYAL MAIL PENSIONS TRUSTEES
Set the scene
Is there an issue?
Our survey helps to clarify
Then over to Paul…
WHAT AM I GOING TO COVER?
“ALL MEMBERS HAVE THE RIGHT TO EXPECT THAT THEIR
RETIREMENT SAVINGS BENEFITFROM EFFECTIVE STEWARDSHIP”
THE PENSIONS REGULATOR, DECEMBER 2016
GOOD GOVERNANCE
THE RIGHT PEOPLE DOING THE RIGHT THINGS
AT THE RIGHT TIMEGOOD GOVERNANCE CAN ADD 1-2% INVESTMENT RETURN EACH YEAR
Source (for the 1-2% statistic only): Ambachtsheer K, Capelle R and Lum H, (2006), “Pension Fund Governance Today, Strengths, Weaknesses and Opportunities
for Improvement, Financial Analysts Journal, October 2006”
SHOCK HORROR
“Eek! A client asked me for constructive
feedback on them”
OUR SURVEY (1) – RATING OF GOVERNANCE CAPABILITIESHow do you rate your clients’ governance capabilities
in the context of today's challenging operating environment
0 20 40 60 80 100
Very well equipped %
Well equipped %
Acceptably equipped %
Poorly equipped %
Unfit for purpose %
0 20 40 60 80 100
Very well equipped %
Well equipped %
Acceptably equipped %
Poorly equipped %
Unfit for purpose %
Consultants’ responsesProfessional Trustees’ responses
WOULD A MEMBER THINK STICKING AT ‘ACCEPTABLE’ WAS GOOD ENOUGH?
OUR SURVEY (2) – IS THERE AN ISSUE?
Importance of giving honest feedback
Consultants’ responses
0 20 40 60 80 100
81% - 100%
61% - 80%
41% - 60%
21% - 40%
1% - 20%
None
% of schemes where consultant gives honest feedback
Professional Trustees’ responses
COMPELLING EVIDENCE – THERE IS AN ISSUE
0 20 40 60 80 100
Highly Unimportant
Unimportant
Neutral
Important
Highly Important
“ONE CHAIR ENJOYS A ‘WARM’ RELATIONSHIP WITH A
FUND MANAGER AND SUBJECTS THE TRUSTEES TO
LENGTHY QUARTERLY PRESENTATIONS FROM SAID
PERSON WHICH ARE A COMPLETE WASTE OF TIME”
SOME ANECDOTES
“THERE IS OFTEN A STATUS QUO BIAS
AS BOARD MEMBERS LACK
KNOWLEDGE AND CONFIDENCE TO
TAKE DECISIONS”
“ALL TRUSTEE MEETINGS HAD BEEN HELD IN PUBS AND
VAGUELY MINUTED WHEN REMEMBERED”
“THE CHAIR IS POORLY SUITED TO THE
ROLE AS LACKS SKILL TO FACILITATE
DEBATE AND DEVELOP CONSENSUS.
PLAYING THIS PERSON OUT OF POSITION
HAMPERS THE BOARD”
There is an issue
Member benefits are at stake
Continuous improvement mind-set is essential
CONCLUSION
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PAUL RICHARDSCRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
DIRECTOR OF STRATEGY, REDINGTON
WHAT DRIVES IMPROVEMENT?
FEEDBACK
ADVISER – TRUSTEE FEEDBACK
0 20 40 60 80 100
81% - 100%
61% - 80%
41% - 60%
21% - 40%
1% - 20%
None
On what percentage of the schemes that you work with have you observed the consultant providing critical/developmental feedback to the chair/trustees regarding how they execute their role? WHY
ISN’TIT
HAPPENING?
TODAY’S SESSION
The challenges of feedback
An effective framework
From framework to structure
BEHAVIOURAL FACTORS
Facing our own imperfections
Giving people difficult messages
Bankrupt systems
PEOPLE VS. PROCESS
Good progress on processes
Committees
Delegation
Feedback is easier
Less progress on people elements
Feedback is harder
FEEDBACK AND THE TRUSTEE ADVISER RELATIONSHIPWhat might stop you giving critical/developmental feedback to your clients?
Strongly Agree
AgreeNeither Agree
or DisagreeDisagree
Strongly Disagree
The chair/trustees are volunteers who are trying really hard – it’s unfair to criticise them
0% 13% 23% 56% 8%
Developmental feedback is uncomfortable 2% 18% 21% 52% 7%
I don’t have the expertise to do it 0% 3% 25% 54% 18%
Not in my scope of work 3% 15% 13% 52% 17%
Risk to the client relationship 10% 57% 18% 15% 0%
Negatively impact ability to work with the client 12% 57% 16% 13% 2%
Radical Candour
Ruinous Empathy
Manipulative Insincerity
Obnoxious Aggression
RADICAL CANDOUR Care Personally
Challenge Directly
OUR EXPERIENCE WITH RADICAL CANDOUR
Clear and simple language
Moral compass
It applies to everyone
It’s only a framework
It’s still a challenge
shows what’s expected
makes it the right thing to do
we are all in this together
it needs to be done thoughtfully and skilfully
but it gets easier with time
BUILDING FEEDBACK INTO THE SYSTEM
Pension Fund
Chair & TrusteesConsultants
School
GovernorsHead Teacher & Staff
SUPPORT SUPPORT
CHALLENGE / CRITICAL FRIEND
“THE CRITICAL FRIEND IS A POWERFUL IDEA, PERHAPS BECAUSE IT
CONTAINS AN INHERENT TENSION. FRIENDS BRING A HIGH DEGREE
OF UNCONDITIONAL POSITIVE REGARD. CRITICS ARE, AT FIRST AT
LEAST, CONDITIONAL, NEGATIVE AND INTOLERANT OF FAILURE.
PERHAPS THE CRITICAL FRIEND COMES CLOSEST TO WHAT MIGHT
BE REGARDED AS ‘TRUE FRIENDSHIP’ – A SUCCESSFUL MARRYING
OF UNCONDITIONAL SUPPORT AND UNCONDITIONAL CRITIQUE”
JOHN MACBEATH, PROFESSOR OF EDUCATION LEADERSHIP, CAMBRIDGE UNIVERSITY
THE CRITICAL FRIEND
TO BE YOUR CRITICAL FRIEND…What would you need to believe to give your clients full and clear developmental feedback on their capabilities?
Strongly Agree
AgreeNeither Agree
or DisagreeDisagree
Strongly Disagree
Support of firm and colleagues 16% 54% 23% 7% 0%
I won’t be ‘punished’ 20% 59% 18% 3% 0%
It won’t compromise the working relationship 29% 56% 10% 5% 0%
The chair wants and values feedback, even if it’s uncomfortable
49% 46% 3% 2% 0%
SO WHAT NOW?
Chair & Trustees Consultants
Find your critical friend / trusted adviser
Introduce the framework
Find a ‘safe space’
Find the right person
Intelligently introduce the framework
Seek permission
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