Striking a balance

There could be some lessons for the aviation industry. Generalists seem to be in the majority on many non aviation boards with technically competent people pushed to the fringes, or used as consultants only. The rise of the generalists has enabled them serve on a number of boards concurrently, no matter what the company’s core business may be. This is good for their bank balances and encouraged a career goal of multiple board appointments. As the Royal Commission is revealing this governance trend has not served the individual companies or its customers at all well.

Conversely, two volunteer aviation boards with which I an familiar and one volunteer staffed aviation board for which I work are made up of aviation people with deep technical and commercial aviation knowledge. They apply this long experience to the issues under discussion and are respected for it by the respective organisation’s members.

Board members of large commercial or regulatory entities need to be paid but it should not be a primary motivation. A balance needs to be struck where board members are appointed primarily for their technical and governance skills in order to understand what is placed before them and to make decisions in the best interests of the shareholders or the public. In short, board members should understand in depth the core business of the organisation that they lead. This is as true for the CASA and Airservices Australia boards as it is for any blue chip company. Unfortunately, this balance has been lost and must be rectified. The government is urged to consider very carefully future aviation board appointments and to strike the skills balance urgently needed.

‘Board members should understand core business.’

Lastly, I would like to thank the fantastic team at AMDA for organising the recent Rotortech 2018. These are the same people that bring you the Avalon Airshow every two years. They are an amazing group of professionals and the helicopter industry thanks them all sincerely. I hope that many readers were able to join us at Twin Waters and experience this great event.