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Canadian Arts Sector 1 June 24 th , 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate Governance Innovation [email protected]

Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

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Page 1: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Canadian Arts Sector

1

June 24th, 2020David R. Beatty C.M., O.B.E., F.ICDDirectorDavid & Sharon Johnston Centre for Corporate Governance Innovation

[email protected]

Page 2: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

So what are the jobs of a BOARD?

Owners: public or private

Management

The Board

Page 3: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

So what are the jobs of a BOARD?...... The “sacred” task

Owners: public or private

Management

The Board

• Hire CEO

Page 4: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

So what are the jobs of a BOARD?...... The “sacred” task

Get that wrong and everyone suffers

• Employees• Patrons• Researchers• Suppliers• Community• Environment

Owners: public or private

Management

The Board

• Hire CEO

Page 5: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

So what are the jobs of a BOARD?......think of 3 time horizons

Owners: public or private

Management

The Board

• Hire CEO

• PAST

• PRESENT

• FUTURE

Page 6: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Owners: public or private

Management

The Board

So what are the jobs of a BOARD?......think of 3 time horizons

• Hire CEO

• PAST• Ensure accounts are accurate• Report to all stakeholders

• PRESENT

• FUTURE

Page 7: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Owners: public or private

Management

The Board

So what are the jobs of a BOARD?......think of 3 time horizons

• Hire CEO

• PAST• Ensure accounts are accurate• Report to all stakeholders

• PRESENT• Oversight of results• Approvals as needed• Understanding of the culture

• FUTURE

Page 8: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Owners: public or private

Management

The Board

So what are the jobs of a BOARD?......think of 3 time horizons

• Hire CEO

• PAST• Ensure accounts are accurate• Report to all stakeholders

• PRESENT• Oversight of results• Approvals as needed• Understanding of the culture

• FUTURE• Be involved in strategy• Know and nourish the talent

Page 9: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Owners: public or private

Management

The Board

So what are the jobs of a BOARD?......think of 3 time horizons

• Hire CEO

• PAST• Ensure accounts are accurate• Report to all stakeholders

• PRESENT• Oversight of results• Approvals as needed• Understanding of the culture

• FUTURE• Be involved in strategy• Know and nourish the talent

Hindsight

Oversight

Foresight

Page 10: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

• Hire CEO

PAST• Ensure accounts accurate• Report to shareholders

PRESENT• Oversight of results• Approvals o/s boundaries• Understand corporate culture

FUTURE• Involved with strategy + risk• Involved with talent pool 10

So what are the jobs of a BOARD….

Hindsight

Oversight

Foresight

Compliance - policing

Strategy & Talent - adding value

Page 11: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

• Hire CEO

PAST• Ensure accounts accurate• Report to shareholders

PRESENT• Oversight of results• Approvals o/s boundaries• Understand corporate culture

FUTURE• Involved with strategy + risk• Involved with talent pool 11

So what are the jobs of a BOARD….and in the non-profits ADD

Hindsight

Oversight

Foresight

Compliance - policing

Strategy & Talent - adding value

Maintaining benefactor passion

Page 12: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

• Hire CEO

PAST• Ensure accounts accurate• Report to shareholders

PRESENT• Oversight of results• Approvals o/s boundaries• Understand corporate culture

FUTURE• Involved with strategy + risk• Involved with talent pool 12

Think about this as “OVER & ABOVE” other functions

Hindsight

Oversight

Foresight

Compliance - policing

Strategy & Talent - adding value

Maintaining benefactor passion

Page 13: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

13

So, you could have an INTERGRATIVE model

Page 14: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

14

So, you could have an INTERGRATIVE model or SEPARATED

FUNDING

GOVERNING

Page 15: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

15

So, you could have an INTERGRATIVE model or SEPARATED

FUNDING

GOVERNING

Page 16: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

16McKinsey & Company

INVESTHow do Boards spend their time today

SOURCE: McKinsey & CCGG Survey of 275 directors

20

10

40

30

70% invested on today

Strategy

Talent

Oversight

Routine

Page 17: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

17McKinsey & Company

How do Boards spend their time todayINVEST

SOURCE: McKinsey & CCGG Survey of 275 directors

20

10

40

30

30% invested on tomorrowStrategy

Talent

Oversight

Routine

Page 18: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

18McKinsey & Company

How should Boards spend their time tomorrow?INVEST

SOURCE: McKinsey & CCGG Survey of 275 directors

20

10

40

30

Strategy

Talent

Oversight

Routine

Page 19: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

19McKinsey & Company

How should Boards spend their time tomorrow?INVEST

SOURCE: McKinsey & CCGG Survey of 275 directors

20

10

40

30

40

20

30

10

60%

Strategy

Talent

Oversight

Routine

Page 20: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

20McKinsey & Company

How is your BOARD INVESTING it’s time?

20

10

40

30Hindsight

Oversight

Foresight

Page 21: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

THEN in 2001/2 Capitalism hijacked by some real BIG crooks

$12.4bn in debt

$52bn in debt

$105bn in debt NEW WORLD RECORD

Page 22: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The GFC obliterated >$2 trillion of shareholder wealth: so where were the 225 directors ????

WHERE WERE THE DIRECTORS ?

Page 23: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

© David R Beatty [email protected]

5,300 employees fired and over 2 million phony accounts

WHERE WERE THE DIRECTORS ?

Page 24: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

IRVING OLDS, CEO U.S. STEEL (1940)

My favourite perspective on boards …….

Page 25: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

“Directors: the parsley on the fish….decorativebut not useful”

IRVING OLDS, CEO U.S. STEEL (1940)

Page 26: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

What’s this a picture of ?????

Page 27: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The Grand Canyon

Page 28: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The Grand Canyon1 mile deep

Page 29: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The Grand Canyon28 miles across 1 mile deep

Page 30: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

A BOARDROOM28 miles across 1 mile deep

Page 31: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

A BOARDROOM – the INFORMATION CHASM28 miles across 1 mile deep

Page 32: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The INFORMATION CHASM

BOARD• ~260 hours/yr

Management team• 3,000 hours/yr

Page 33: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The INFORMATION CHASM

BOARD• ~260 hours/yr• “gifted” amateurs

Management team• 3,000 hours/yr• Lifetime experience

Page 34: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The INFORMATION CHASM

BOARD• ~260 hours/yr• “gifted” amateurs• otherwise engaged

Management team• 3,000 hours/yr• Lifetime experience• Singular focus

Page 35: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The information chasm is deepening and widening with increasing size and complexity…

BOARD• ~260 hours/yr• “gifted” amateurs• otherwise engaged

Management team• 3,000 hours/yr• Lifetime experience• Singular focus

Page 36: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The information chasm is deepening and widening with increasing size and complexity…

BOARD• ~260 hours/yr• “gifted” amateurs• otherwise engaged

…and they don’t even speak the same language

Management team• 3,000 hours/yr• Lifetime experience• Singular focus

Page 37: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate
Page 38: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

FIR

EWA

LL

S1

S2

S3

S4

S5

S6

S7

Internet

Vertical Marketplaces

Horizontal Marketplaces3rd Party Content

Site• TPN• Harbinger• Aspect

Marketplace / Portal

• MarketSite• ariba.com• Oracle Exchange• … Fax

EDI

OBI

XML

Intranet

Training Software

Communication / Services

• ECXpert• …

Fax

EDI

OBI

XML

Buying Application

• Oracle• SQL

DB

Hosted Content

TravelExpense

Reporting

Supplier interface for P.O.s

Interfaces

Content

Existing Content

Content created for Dana

Content Authoring Software

Self-maintenance software for

suppliers

Pilot Implementation Global Implementation

Required HW• DB servers• Web servers• Appl. Servers• …

Content

ContentD1

D2

D3

D4

D5

ERP CMMS

Corp. Systems

Generic E-Procurement architecture

Page 39: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

FIR

EWA

LL

S1

S2

S3

S4

S5

S6

S7

Internet

Vertical Marketplaces

Horizontal Marketplaces3rd Party Content

Site• TPN• Harbinger• Aspect

Marketplace / Portal

• MarketSite• ariba.com• Oracle Exchange• … Fax

EDI

OBI

XML

Intranet

Training Software

Communication / Services

• ECXpert• …

Fax

EDI

OBI

XML

Buying Application

• Oracle• SQL

DB

Hosted Content

TravelExpense

Reporting

Supplier interface for P.O.s

Interfaces

Content

Existing Content

Content created for Dana

Content Authoring Software

Self-maintenance software for

suppliers

Pilot Implementation Global Implementation

Required HW• DB servers• Web servers• Appl. Servers• …

Content

ContentD1

D2

D3

D4

D5

ERP CMMS

Corp. Systems

Generic E-Procurement architecture – so today we’d like approval for our $1,400mn budget….

Page 40: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Page 40 | IPC Template | CONFIDENTIAL

Executive SummaryProject Noah expanded Mobility’s Client Care outsourcing program in 2007 and 2008. The project also included the integration of Atlantic Mobility client care into the national Mobility Client Care operation. Key elements included;

• Incremental outsourcing of new Mobility call types,• Introduction of a new Client Care Partner:• Repatriation of Atlantic call volumes from Bell Aliant (April 28th 2008)• Establish trial of prepaid control group Internally.

The execution of Project Noah resulted in some changes from the original plan including; bringing Atlantic NCS internal to Mobility rather than outsource, and outsourcing corporate client care to Bell Aliant (BA) instead of ICT.The project was executed with a two week delay to April 28th coincident with the launch of the conversion of the Atlantic billing system. •Deployment was executed as planned with no material technical/call distribution/billing changes or issues. •The client care operation is currently in a phase of transition leading towards normalization. The expected high call volumes and AHT from Atlantic clients in the first few months post April 28, have continued at a higher level than forecasted initially and programs have been introduced to drive both metrics down to normalized levels. •One area that has required greater than anticipated attention is the area of corporate account servicing – including client care, dealer service and sales support. With the integration of Atlantic into Bell Mobility NM1 and operations, this area was subjected to many significant process changes which resulted in some disruption to corporate accounts and to dealers. A cross functional team was deployed to develop and input into NM1 the very important corporate account information (including; hierarchy, default pricing and activation notes) which could not be effectively translated with the billing conversion. This complex initiative is nearing completion. Work around processes were developed to service the Customers until this information was fully available.Business Case Highlights;•The Project Noah business case has a strong financial payback driven by improved costs for outsourcing, the lower cost of changing outsource partners, and the leveraging of the Mobility client care tools, processes, resources for Atlantic client care operation. Previously, for Atlantic client care; SLOs were not sold, and VAS/data sales were primarily reactive. In the integrated model we expect to see increased revenues and sales from client care, however, these have not been factored into the business case.•Overall the business case has improved significantly from an NPV of $24.4M at Gate 4 to $28.9M currently.

The material changes to total expenses include; Decreased Bell Aliant transition costs (-$6M)/ Decreased travel and non-salary project expense (-$.4M)/ Decreased IT connectivity expense (-$1.8M)/ Increased costs from bringing Atlantic NCS internally rather than outsourcing. (+$2M)/ Higher Atlantic call volumes post launch than anticipated by 100K for 2008 (+$0.82M). Decrease of Atlantic Collection volumes by 1M (-$3.2M) (Delaying introduction on CDS for Atlantic (-$0.21M)/ Lower outsourced national call volumes than anticipated early in the program by 236K and adding Loyalty Atlantic Volumes (+$1M)

Page 41: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The information chasm is deepening and widening with increasing size and complexity…

BOARD• 260 hours/yr• amateurs• otherwise engaged

Management Team• 3,000 hours/yr• Lifetime experience• Singular focus

…and they don’t even speak the same language

Page 42: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

The information chasm is deepening and widening with increasing size and complexity…

BOARD• 260 hours/yr• amateurs• otherwise engaged

Management Team• 3,000 hours/yr• Lifetime experience• Singular focus

…and they don’t even speak the same language

..and those who choose to join your Board

are most likely to do so out of passion for your mission

Page 43: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

[email protected]

This is where we are going !

Page 44: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

[email protected]

But it’s a REALLY tough job !

Page 45: Canadian Arts Sector - Business / Arts · 2020. 6. 29. · Canadian Arts Sector 1 June 24th, 2020 David R. Beatty C.M., O.B.E., F.ICD Director David & Sharon Johnston Centre for Corporate

Canadian Arts Sector

45

June 24th, 2020David R. Beatty C.M., O.B.E., F.ICDDirectorDavid & Sharon Johnston Centre for Corporate Governance Innovation

[email protected]