Problems of Innovation

NBPSPP and stewardship

Is NBPSPP missing the boat and thereby leading us, the retirees, onto a problem? The analysis so far might lead one to conclude this. It is, after all, not a very large plan. And, it earned, last year, only 7.5% and change when, realistically, it might have earned 10%-12%. 

Perhaps we ought to help them look at the context for fostering stewardship. To do this, the Plan needs to adapt to the social, economic and perhaps, the political needs of the province and it needs to adapt to the needs of the plan members. 

• Does the Plan have a clear identity and what are the values it uses to invest our retirement savings? 
• Is the plan and the way investments are managed, sensitive to changes to the external world? Why, for example, during the annual meeting is there no mention of the anticipated changes to the political and economic climate, globally? How might this affect our plan's financial health?
• Is working solo the best strategy? Would we better off hitching our star to CPP and throwing in with them? Would this provide cover for us in the event of a national or global problem? During the 2008 melt down, our plan took a beating and has only just recovered...one of the last plans to do so. 
• Do we have enough liquidity to remain agile in today's markets? Can we be responsive to the needs of the Plan members? What are the needs of the plan's members? And, how might the plan advocate on our behalf?

Responding to NBPSPP

What ought we look for in terms of policy guides from our Pension Plan Board? How can we be assured that the plan is acting with the best principle available?

Other than the assurance that everyone is independent (which they aren't) and must act in the  best interests of the plan, first and foremost (which they may) and that they are selected through a nominating process (which is not transparent), we really don't know what their ethical guidelines are. 

Here are a few policies which are available through other plans. 

• Ethical Practice and Social Responsibility: guides investment practice 
• Code of Conduct and Code of Ethics: guides board behaviour
• Pensioner Rights Statement: guides what info we can have, whether we have, as an example, a say on pay, whether we get to nominate board members, whether we hear the audit report from the LID and can ask questions accordingly.
• Corporate Governance Guidelines: so what policies are in place to guide the governance process
• Say on Pay for Vestcor: even is this is only symbolic, it is worth a lot. 
• Whistleblower guidelines both for staff  and for pensioners. 

Those are pretty general. Most responsible corporations have these. Its just that we don't, at least not yet. But, the policies on ethical practice can be, and ought to be, more specific. These policies would include:

• a policy on lobbying..who and for what. And, how is this activity  reported to the pensioners
• Board education...what, why and how is it linked to the skill matrix?
• Audit and its independence. And , is there an internal audit which is reported to the audit committee?
• Is there a policy on personal trading and related party transactions? 
• Is there an anti bribery and corruption policy.

Other pension plans have these policies.

Why don't we? 

How to blow off an elected representative

Councillor Mackenzie, Ward 2, asked a good question during the City Manager's budget presentation. He asked why we were so focused on "efficiency and cost cutting" and not so interested in innovation. The City Manager blew him off by stating that the managers were focused on continuous improvement. (without actually saying what they were doing). I touched on this a couple of days ago.

What is "continuous improvement"? This is a word much thrown about by sanctimonious public servants when asked a reasonable question by a person elected by the citizenry to attend to our interests. 

Continuous Improvement's hay day was during the introduction of the Shewart Cycle of plan-do-check-act. Japan of the 1980's made hay with this..... and their economy boomed.
As did Motorola, 3M and GE. 

How's it working for them now??

Not so good.

Innovation is in the proverbial dumpster. Managers drove themselves into a frenzy of efficiency and  forgot, largely, about the needs of the customer.

These companies and this country became really efficient operations with nothing new to sell. 

The cult(ure) of the nation and these companies became one of efficiency, driven by data. As a consequence they lost their edge,which was innovation.

And this is what I think Councillor Mackenzie was getting at. 

If I can expand on where I think he was going, he was advocating that the City of Saint John and its management staff ought to customize how and where efficiency is planned and implemented.
So, instead of a cult of efficiency, managers and unions consider what programs to focus their analysis on.
So, pick your battles.
I think that Councillor Mackenzie was reminding the city Manager that the role of management (and to a certain extent the unions) is:

• to challenge the basic assumptions which form the basis for service delivery in the City,
• for whom and
• why it is being done.
• Why not examine city services by neighbourhood? Can demand and delivery be streamlined?
• What data is used? Is there anomalous information which would also inform decision making?
• Who are the stakeholders in service delivery? 

Women on Board: A Board Game 

Over the last several week, I have outlined the challenges women might face and strategies they might use to advance their careers in governance. Now, comes the hard part. Crafting a game which might be interesting. 

Goals

The goal of the game is to advance around a board acquiring up to 3 directorships on corporate boards, ultimately becoming Chair of at least 1 Board. 

The game would be at once competitive and cooperative-competitive towards the end and cooperative at the beginning. 

The game would be best for 4-6 people.

The mechanic would include

•  roll of the dice to advance along a board. 
• icons/tokens
• life event cards
• academic /continuous learning cards
• work life cards

Victory conditions at each phase of the game would be :

• undergrad degree
• grad degree and/or a professional designation
• recognition in the voluntary sector-even notoriety (locally, then nationally)
• recognition in a professional association
• notoriety in one's profession (publications, speaking engagements
• pay down student debt
• successful placement on an evergreen list
• advance to a junior board, then to a senior board
• acquire a mentor
• acquire a sponsor
• placement on 1 board (then 2, then 3)
• career advancement on the board(s)