MICHAEL Smith believes being a Perth-based director helps him juggle time because the four-hour-plus flying time (to anywhere) provides a cocoon for him to get things done.
MICHAEL Smith believes being a Perth-based director helps him juggle time because the four-hour-plus flying time (to anywhere) provides a cocoon for him to get things done.
“I sometimes have to go to my PA and say ‘send me somewhere’,” Mr Smith offers when asked how he manages several directorships from WA, including two major local listed firms.
“We (seasoned directors) all fly well, you make really good use of the time; no phone, no interruptions; it is useful time we all harvest.
“When you are there that is all you do; if you are in Sydney or Melbourne that tends to be your complete focus, whereas other people are juggling appointments.
“I haven’t found it is a burden.”
Most of the leading directors who attended the WA Business News forum appeared to agree that being based in WA had not impeded their careers.
But they all acknowledged there were hurdles that individuals had to overcome if they wanted to be members of a national board.
That meant doing the networking required to be noticed in the first place, ensuring lines of communication were strong after that but, also, like Mr Smith, taking advantage of some of the benefits distance has to offer.
Forming relationships with relevant people is clearly harder to do for WA-based people. Hence, those with executive experience that has involved significant exposure to east coast networks have the double benefit of the right background and connections.
However, such networks can be developed and maintained with a little bit of hard work.
Neil Hamilton believes the distance has proved much less of an issue in recent times.
“It is getting easier,” Mr Hamilton said. “It was a severe inhibition in the early days.
“It is like the Australian cricket team; once you are in it is hard to get out ... mind you the Australian cricket team might change.”
Diane Smith-Gander said that once networks had been established they were easily refreshed, and Tony Howarth agreed.
“I don’t think it is that complicated,” he said. “The responsibility doesn’t rely on the people from the east, it relies on us.
“It is not just business networks that keep us connected, each of us around the table has important sporting connections.”
While new technology such as the latest video-conferencing suites makes communications easier for directors in Perth, there are times when this does not suffice.
It sometimes takes experience to determine which moments to rely on technology and when being there in person is more important.
“We all get the phone call that says ‘we are having a meeting tomorrow between 11am and 12, are you alright to make it’,” Mr Howarth said, adding the answer was “no”.
Mr Tilbrook seemed to think that the size of the company mattered a lot in this respect. Bigger companies typically had better board governance and more switched on chairs, which ensured there were fewer surprises for directors – this was supported by statements that bigger boards were easier to work with than smaller ones, whether or not the company was based interstate.
WA’s distance also means that Perth directors bring a different perspective into the boardroom, even though most no longer believed there was something special in the water here that made Perth-based directors inherently insightful.
Mr Howarth said WA directors did think differently, but only because they were based in a region where the economic drivers were different.
Mr Smith notes the state is disconnected from many of the national issues which influence decision-making in other states.
“Take energy, for example. We are not part of the national energy grid so the debate about nuclear power is not relevant here,” he said.
“There are whole range of issues which are WA based that I think people have to understand because they are different. That is an import thing a WA directors contribute, in the same way as other diversity issues it is important because you are dealing with those issues.”
Mr Tilbrook has a similar point of view in noting that it is at policy level where WA-based directors bring something special to the board discussion.
“I think the disparities that come about are more in policy level at state versus state level,” he said.
“On a board you do tend to see issues of public policy where WA is increasingly in the spotlight vis a vis states where the economies are not doing so well. That will lead to some tensions obviously.
“I think the minerals tax is a good example that treats different states differently and will lead to ongoing issues about how that revenue is split up.
“If you spend time in Sydney and Melbourne, as some of us do, it is quite obvious the drivers of those economies are performing differently to what we have here.”
