Sport governance

How can we be more strategic in what we do? Using an action research approach, this study found that if boards of national sport organisations actively partnered with the CEO in the strategy process and sought to share governing power with regional entities, they could enhance their strategic function.

Tackling health inequalities : what do senior managers think

Objective: To describe how New South Wales (NSW) Area Health Service Chief Executive Officers (CEOs) understood concepts of equity in the development of NSW Health's Equity Statement; CEO knowledge and interpretation of a given concept being one aspect of developing policy.

Design and Setting: This paper describes the process through which NSW Area Health Service CEOs were involved in developing the Equity Statement, specifically:

1. Briefings with individual CEOs on key issues and identification of possible difficulties and potential 'equity champions'.
2. A two-hour workshop to explore ('pre-mortem') why the proposed statement might fail.
3. CEO involvement in identifying strategies that promoted equity already operating locally.
4. C onsultations with selected individuals about the draft recommendations.
5. Feedback to CEOs.

The article provides a case study of consultative policy making by illustrating how participant knowledge can both inform and be strengthened by involvement in the policy development process.

Results: There was a high level of awareness among CEOs of health inequalities and an acceptance of their responsibility to address them. They saw three main ways of doing this: a) equity of resource allocation for health service delivery within and between regions; b) equity of access to health services based on need; and c) equity of health outcomes. CEOs felt that making the health system accountable for health outcomes would provide pressure for system-wide resource allocation changes. They recognised that factors substantially impacting on health outcomes were outside the control of the health system. Furthermore, finding a balance to which they could be held accountable was difficult. All CEOs saw ensuring needs-based access to services as a key area where they could potentially have an impact; and they specifically saw challenges in a conflict between equity and efficiency, marginalisation of special treatment for disadvantaged people, balancing investment in rescue services and prevention/early intervention, and developing a rational health financing system. The resulting policy has been broadly embedded within the NSW health system with strong local support.

Conclusion: The NSW Health and Equity policy was embedded because CEO leadership and acceptance of the policy enhanced local ownership.

Director remuneration and narrative disclosure of remuneration changes: remuneration committee effects

 This thesis investigates the impact of remuneration committees on CEO remuneration, the narrative voluntary disclosure of remuneration information and its attribution. Results show the existence and quality of a remuneration committee play an important roles in relation to CEO remuneration and in relation to remuneration narrative disclosures and attribution.

Securing institutional legitimacy or organizational effectiveness?

Purpose: The purpose of this paper is to consider the impact of a major initiative (the National Competition Policy) and pieces of legislation (the Local Government Act and the Local Government Finance Standards) on the internal practices of a large Australian local authority.

Design/methodology/approach: A theoretical framework is developed using new public management (NPM) and neo-institutional theory literatures to explain the findings. A case study approach was applied to collect the data for the research.

Findings: The findings reveal that the National Competition Policy 1993, the Local Government Act 1993 and the Local Government Finance Standards 1994 mainly have brought about significant changes to the organisation's internal management control processes, such as financial reporting, budgeting and performance appraisal. The changes brought in appeared to be coincidentally similar to NPM ideals. Furthermore, senior managers (such as the chief executive and divisional heads) played a major role in implementing new accounting technologies (activity-based costing and the balanced scorecard type performance measurement system).

Research limitations/implications: Future research on public sector financial management from the outset of organisational contexts could considerably further the stock of knowledge in this area, especially given the rapid changes occurring within the public sector throughout the world. Future research may wish to extend this study by assessing how external legitimating functions become internal reality, the perceptions of reality of the organisational members, and how these perceptions change over time.

Practical implications: The findings reported provide evidence to further our understanding of how the introduction of private sector styles of organisational practices into large areas of the public sector brought about significant changes in the demand for “new” financial management practices.

Originality/value: The findings reported on in this paper will open a new path of research that may increase our understanding about the factors that play a role in the design of management and accounting systems in a public sector context. Further, they will help policy makers and public sector managers in their day-to-day decision-making.

Cultivating mangement? Managing culture?

Jean Battersby, the founding executive officer of the Australia Council of the Arts from 1968, delivered a lecture in May 2005 which bemoaned a situation in which the focus and funding of the arts appears to have more to do with managers than with artists. Cultural policy and cultural economics have become the staple of the day, so much so that the thought of an economist actually proposing an Arts Council protected from political manipulation and scrutiny—‘with antennae sensitive to public opinion or political advantage’ and ever ready to apply the ‘child of three’ test (Battersby, 2005: 2)—seems an absurdity. Yet, in July 1945, Maynard Keynes proposed that Britain have an Arts Council without government and its bureaucracy intervening in the relationship between artists and their public. The task, as Battersby records it, ‘is not to teach or to censor, but to give courage, confidence and opportunity’ without prescription (2005: 6).

Acting at the Nexus : integration of research, policy and practice

This report is the result of an exciting journey of discovery. As with all journeys, we have been to many exotic places, have met extraordinary people, and at times have been challenged to keep going ahead rather than retreating. Good journeys are also enjoyed best in good company. We would like to thank VicHealth for giving us the opportunity to embark on our voyage, but also specifically to some great VicHealth staff: John Biviano, Siân Lloyd, Barb Mouy and Ali Barr have all been travelers along the way, providing us with encouragement, directions and nourishment. We know that our Project Advisory Committee and the then Chief Executive of VicHealth, dr. Rob Moody, have followed our progress on the journey with great interest. A special word of thanks to professor David Hill, chair of our advisory committee and member of the VicHealth Board of Governance, to sit down with us and critically review our navigation procedures. But we could not have reached our destination without the great assistance of the people and agencies that gave us their time, energy, and sometimes precious resources, to engage in data collection for our case studies. Again, a particular word of appreciation, to professor Brian Head, and to Ruth Belben for her incredibly efficient assistance, in organising the ARACY workshop on 24 November, 2006 in which we were given an opportunity to triangulate our position with colleagues from research, policy and practice.

The existence and nature of risk management committees in Australian companies

A risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation’s risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant. Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, CEO duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and (1) the existence of a RMC, and (2) the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 ASX-listed companies. The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity. The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Organisational development in local government

To a significant extent, Australian local government CEOs have opportunity to enhance their current understandings of and attitudes towards human resource imperatives such as organisational culture, employee empowerment and non-linear management practices. Improvements in these areas could better achieve organisational results as HR strategy intentions would be aided by congruent applications.

Encouraging high expectation entrepreneurship : the implications of Australian policy practices

Recent studies have shown the important roles that new high growth firms can play in job creation and economic development. This paper reviews the positioning of present Australian government policies and programs that intend to be supportive of the development of more high growth businesses; that is those that employ greater than twenty persons. The research explores the environments of a group of new high growth Australian firms and the roles that the various identified government support initiatives have played in their development. The paper also draws on recent research on survival and growth patterns of spin-off companies generated by publicly funded research agencies to map the government support initiatives with the different stages of the high growth business life cycle. The paper reviews issues in the Australian business environment that may have affected the rate of generation of new high growth firms. Of particular relevance has been the progressive freeing up of the Australian labour market and a greater resource allocation to research commercialisation by publicly funded research providers. The analysis has finally separately considered how to produce and support more founders of such high growth firms, their future chief executive officers, the specialist consultants and other professional support people and issues related to access to finance that such firms will need. The research findings draw attention to the important role of government financial support for industry research, particularly at the point where the first product is in the market and resources are scarce. At this point support is vital both to increase the market penetration of the core product and for R&D for product customisation and increasing the product range.

The perceived scope of internal audit function in libyan public enterprises

Purpose - The aim of this exploratory study is to examine the perceptions of stakeholders regarding the scope of internal audit (IA) work in Libyan state-owned enterprises. Design/methodology/approach - Data were gathered through semi-structured interviews with chief executive officers, IA directors, administrative affairs managers, financial affairs managers and external auditors, which were supplemented with a review of relevant documentary evidence. Findings - The results of the study show that the scope of IA in Libyan organizations may not be sufficiently wide ranging to be considered as a value-adding service. The scope of the IA function may need to be expanded to cover a broader range of organizational functions if internal auditors are to offer value-adding services to their stakeholders. Practical implications - The IA profession has received scant attention in the literature, especially in the context of developing countries such as Libya. Therefore, such settings offer the potential to enhance the understanding of IA practices. As a study on a developing economy, it enhances understanding of the IA profession’s global configuration beyond the predominantly market-driven, industrialized Western economies. Originality/value - In contrast to most previous studies, this study covers a broad range of IA stakeholders’ views on the role of internal auditors. This coverage enabled an in-depth investigation of the factors affecting IA scope and understanding of stakeholder perceptions on the IA function.

Building a local design and entrepreneurship ecosystem

Design and creativity are becoming greatly sought out skills in leading industries around the world, big businesses are developing the “Chief Design Officer” to engage with strategic and company shaping discussions. Design as an economic driver is now abundantly clear with companies such as Nike and Apple leading this way of thinking, but how do we as Australian industry capture this and how do we instil “creativity” into our secondary school and university level education to drive the next level of innovation and development. The local region where Deakin University is situated has undergone significant changes in the last 10 years, what was once an economy dominated by oil, automotive and metal production industries has been wound down to a local economy dominated by health, services and education. However, manufacturing and design being the front end of manufacturing is still a key economic driver this study is looking at the embryonic initiatives undertaken to build an ecosystem of design and entrepreneurship in a regional area. Several aspects will be looked at, high school and university student engagement in the process, established SME's and start-up culture. With the establishment of an ecosystem it is believed that success will breed success. With student engagement showing that being creative and playing can yield tangible results, it also gets students comfortable with the element of risk. The efforts of Deakin University is about providing the framework and scaffolding for students to pursue a start-up idea and test it validity. The final part of the ecosystem is for SME's and recent start-ups to share their success stories and acting as mentors as future start-ups emerge. By creating an ecosystem that is driven by design, manufacturing and entrepreneurship key economic outcomes will be generated; a regional area will be more resilient to economic uncertainty and ultimately a cohort of innovative thinkers that will generate value for their community.

Is the lack of clear definition for the CMO role a necessary evil?

The CMO job description has been described as ambiguous. Is this good or bad? This article explores this issue.

Examining strategic preparation for CEO succession

This research used a case study approach to examine how mid-sized Victorian State Sport Organisations select a new CEO. The specific focus was on the emphasis placed on achieving strategic fit, the usage of organisational strategy throughout the selection process, and what facilitated and hindered a successful hire.

The value of executive director share ownership and discretionary accruals

Purpose – The purpose of this paper is to investigate the relation between the value of executive director share ownership and discretionary accruals.

Design/methodology/approach – This study uses a dataset of 1,173 firm-year observations drawn from 188 Australian listed companies for the period 2000-2006. The analysis is based on multivariate regression analysis and ordinary least square models were used to investigate the relation between the value of managerial ownership and discretionary accruals. The issue of potential endogeneity is addressed by using a simultaneous equation system.

Findings – A negative relation is found between value of managerial share ownership and discretionary accruals at lower levels of value of ownership, which is consistent with the theorised incentive alignment that as the managers commit more resources to their firms, stakeholders impose less contractual constraints specified in terms of accounting numbers and managers make lower accrual adjustments. After a certain level of value of ownership is attained, a positive relations seen, consistent with increased discretionary accrual adjustments associated with stakeholders anticipating managerial entrenchment. Also, it is found that these results are driven by firms with income increasing, as opposed to income decreasing, discretionary accruals.

Practical implications – Shares and options are forming an increasing proportion of executive remuneration that continues to be the subject of much debate amongst regulators and in the media. Showing that the value of share ownership may be an effective internal governance mechanism to help align incentives adds to the debate and has policy implications.

Originality/value – The paper's primary contribution is finding that the value (as opposed to proportion) of share ownership, typically representing a sizeable proportion of managers' undiversified wealth, is a potentially direct driver of theorised incentive alignment and entrenchment effects associated with share ownership.