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 Skills-based AWI board still an option 

Skills-based AWI board still an option

29 Jul, 2010 08:48 AM
WOOLGROWERS would still have the choice in electing skills-based directors to the Australian Wool Innovation board despite new Federal Government requirements, chairman Wal Merriman said recently.

The Federal Government and AWI recently agreed that the wool research and development body establish a skills-based board as part of a statutory funding agreement up to 2013.

The skills-based board would be required to demonstrate expertise in corporate governance, wool growing, processing, product promotion and retail marketing, domestic and international trade, research and development, technology transfer, innovation, natural resource management, finance and business management.

But at the Australian Sheep and Wool Show in Bendigo Mr Merriman said AWI’s constitution remained intact. He said previous attempts to impose skills-based board members had been opposed by growers.

“Industry has done this before and every time a board has been imposed on the growers the growers have revolted," he said.

“I take the view the shareholder knows what he is doing and knows what he is voting for.

“It is their decision, they are the ones that are funding it.”

He said if growers did not have “some sense of empowerment” they could vote not to fund AWI at the next Wool Poll.

Mr Merriman said growers had agreed that there would not be any elections for two years, but the board could appoint skills-based directors for short terms.

“You could have a scenario where if you think you were lacking in a skill you could bring someone on and if they didn’t want to contest the hurly-burly of an election they could resign.

“But if you look at the (skills) list they will need a board of about 16 people if each one has got to have that specific skill mentioned.”

Mr Merriman said AWI directors would have to be multi-skilled.

“And I would suggest they have got to have knowledge of the industry.”

He said the AWI board’s nomination committee would advise growers of its preferred candidates before the next election.

It was “a bit early yet” to be making skills-based appointments but Mr Merriman believed other board members were thinking about this.

“Some might argue that we haven’t got a wool marketer on the board, but the business has all been done, we’ve had (former CEO) Brenda McGahan for 12 months or more and the marketing strategy is set in place for the next 3-5 years.

“We’ve got plenty of successful sale people who have sales people on the board,” he said.

“We’ve got a wealth of wool-specific talent in the company.

“So I’m happy we’ve got the marketing skills within the company though we don’t have a specific wool marketer-retailer on the board.”

Mr Merriman said legal skills were covered and there had been three reviews on corporate governance.

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If I am understanding Wal's comments properly he seems to think that the role of a marketing person is to set the strategy and then they are no longer needed. So who is going to implement the strategy? A board divided? My biggest gripe with this industry is the AWI's lack of ability in taking innovative products to the market. The current wool industry is in a mature stage of its life cycle. Innovation is the only solution to this problem. But innovation is not going to come from a board made up of people pushing their own barrows. We need an AWI made-up of persons with the right skills - developed in adjacent industries - so that they come to the wool industry without baggage or their own "hobby-horse" to push. Truly independent people above reproach. We don't have that at present - and yes I know such a wish list is utopian! But we should definitely should be able to improve upon what we have had recently and up to now. But what do I care anyway - I am moving towards Dorpers!
Posted by The Differentiator, 29/07/2010 12:11:29 PM
Well Mr Dorper Diff, but we've had your utopian types before, highly skilled in adjacent industries maybe. Shareholders voted them out in 1998, 2002 & 2008. Want to try again?
Posted by Maverick, 29/07/2010 3:33:39 PM
Differential, You purchase those skills. Wally is spot on.
Posted by Realist, 29/07/2010 6:03:13 PM
SKILLS BASED. What a pathetic meaningless excuse to appoint mates to a Board. Marketing: Somebody such as Dick Smith without tertiary qualifications would I expect be considered without skills. Sheep classing: I have seen thousands of dollars wasted on sheep classers. There are some good classers but I have shorn classed mobs including the culls and certainly not value for money. As one neighbour pointed out you don't need a sheep classer when you have a certain 2 shearers dragging from the same pen. Cull the first 4 and the last 4 from each pen full and you pretty well have it. Anybody still producing wool and not going broke would have quite a different set of skills to the highly paid unaccountable skilled based experts we have had for the last 20 years.
Posted by John Niven, 29/07/2010 8:06:12 PM
No more professional seat polishers ever again on this excellent board. We sacked three of them two years ago as they were useless. Skills based nonsense from a Labour minister whose on "skills based" party is ruining this country. What a joke, What hypocracy. Let growers decide their future, not big brother.
Posted by jim hawkins, 30/07/2010 6:41:36 AM
I take the point that in the past there have been mates appointed to the board. And this is definitely not something I am advocating to occur again. And yes there are blokes like Dick Smith and Richard Branson who don't have specific qualifications but obviously have the necessary skills. I am not saying that you need a degree or anything like that. But just because you are a good wool grower doesn't necessarily mean you are going to be a good marketer/administrator. By all means let's keep the board elected by the shareholders - but you blokes who want to stay in wool need to put some serious thought into who you elect next time. The recent history of the current board only serves to prove you have put the wrong people in again.
Posted by The Differentiator, 30/07/2010 7:06:37 AM
What you blokes seem to keep missing is that wool producers are skilled, but the skills they need to run the AWI are not about classing sheep or producing wool. We need directors who understand the rest of the industry as well as production, but most importantly know the real charter of AWI and ensure all sectors of the wool industry are functioning well and profitably including producers. Dick Smith would by all definitions be an excellent candidate for an AWI board because of his demonstrated skill, but I can almost guarantee he wouldn't go near AWI because the board does not function like a professional board. Sadly, most decent and capable directors are not interested in many ag boards because of the parochial garbage generated by flat-earther farmers who don't even comprehend the actual skills needed to be an effective director. The funniest part is that you object to a skilled board, which leads us to understand you would prefer an unskilled board. In that case Realist, you are eminently qualified. Being a producer does not make us qualified to be directors, but there are producers with the skill to be good directors, unfortunately they aren't often found in NSWFA.
Posted by wooltieand tweed, 30/07/2010 7:13:08 AM
It may well be time for the federal government to cut AWI adrift from their oversight. Make them totally independent of the Minister/government and allow producers to be the ONLY controlling group. At the moment the Minister is a crutch expected to step in and solve issues when they come to a head. Put the fate of AWI and the industry in producer hands alone and let them live or die by their wit and wisdom in dealing with their market. In the meantime Dorpers/Wilty polls are looking a far more attractive business proposition!
Posted by Cronus, 30/07/2010 8:06:35 AM
I think we would all be better off. Everyone in the wool chain stuck to their area of expertise - ie. Woolgrowers should stick to wool growing, wool processors should stick to wool processing, and wool retailers should stick to retail marketing. At the moment we have the ridiculous situation where woolgrowers are trying to dabble in retail marketing, and retailers are trying to tell woolgrowers how to grow wool. Not surprising the results are fairly predictable.
Posted by Qlander, 30/07/2010 8:09:48 AM
The sad thing is that one of the most skilled directors, Laurence Modiano, was asked to resign by the chairman. Why?
Posted by Maverick, 30/07/2010 8:33:30 AM
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