A governance course run by Silver Fern Farms, Farmlands and LIC is helping develop the skills and talent demanded by modern co-operative agribusiness boards.
Silver Fern Farms (SFF) chair Rob Hewett said the To the Core governance development programme came from a conversation between himself and former chair Robbie Burnside about the need to develop a better talent pipeline for emerging director talent at the company.
“We kicked it off six years ago, ran solo for a while and then realised there were other co-ops having very similar issues. Farmlands came on board, and more recently LIC.”
Hewett says Silver Fern is also taking a holistic view of leadership development, recognising the skills learnt through any course can also be applied within the communities the company is active in, down to the level of volunteer sports club and charities.
The To the Core programme gives interested and aspiring director talent an introduction to the demands of director leadership.
“We make it clear if you want to go on there are lots of other opportunities we can help you with, but if you do not then fine, the skills learnt will help beyond Silver Fern, in the communities as well.”
For those keen to progress, the process has an advanced stage, familiarising individuals with a higher level of the business’s operations.
The final “leg of the stool” is the extended development group, identifying the cream of the crop who are fully committed to directorship roles and leadership.
Candidates are encouraged to find a mentor who fits with their personality. Hewett says a key trait he looks for is a candidate’s level of curiosity about the world, New Zealand’s place in it, and the company’s role in the bigger picture.
He says he is noticing that, of those candidates advancing, there are a number of farmers who exhibit a high level of corporate experience having come back to farming from finance and business backgrounds, often overseas.
“That is not to exclude anyone who may have been on the farm their entire time. The reality is, however, that these are big complex operations. People with corporate experience do tend to put their hands up.”
He hastens to add that simply following the governance programme is no guarantee of a board placement.
“Shareholders vote these candidates in. The fact the board thinks they are good does not guarantee a place on it.”
The existing SFF co-operative board includes three members who have come through to the extended development group stage.
Hewett says while there are no guarantees of placement, the courses ensure a level of depth, and provides a bench of potential candidates.
“You have got to have options there.”
Compared to even a decade ago, the demands on director leaders are intense.
Directors’ legally enforceable fiduciary responsibilities have grown in the wake of events like Pike River, while digitisation and the internet mean the speed of business is simply faster.
Despite there being fewer larger farms, the calibre and interest from farmer shareholders wanting to develop their skills beyond the farmgate remains strong.
“We are still getting talent that includes corporate farmers putting their hands up with a generally well-rounded skill set,” Hewett says.