Towards a World Class Institute

By John KM Lim

President

A strategic review of the Institute which was supported by the Monetary Authority of Singapore (MAS), the Singapore Exchange (SGX) and the Accounting and Corporate Regulatory Authority (ACRA) was conducted in mid-2008 by PricewaterhouseCoopers.

The objective of the review was to recommend improvements to the current structure and activities of the Institute so as to position it to better meet the changing needs of directors and the corporate community in Singapore.

The review was carried out through a series of interviews and surveys with SID members, company directors, SID Council Members and other relevant stakeholders in Singapore. The review also evaluated the structure, practices and activities of similar institutes in other leading jurisdictions in order to establish a bench mark of relevant global best practices to guide SID in its efforts to develop itself into a “World Class Institute”.

The findings of the study indicated that while Singapore enjoys a good reputation for high corporate governance standards regionally, there is still considerable scope for improvement in the current state of governance practices here.

Based on the findings and the plan to play an increasingly key role in helping to ensure sustainable excellence in corporate governance in Singapore and with the vision of establishing SID as a world class institute serving the professional needs of its members and the corporate community here, the Governing Council has formulated the following key directions for the Institute for the next decade.

While these directions have been established, detailed implementation plans are still being developed and these will be released over the next 24 months.

The key areas of focus are:

a) Strengthen the Secretariat

b) Address training programme and delivery

c) Develop a more active business events programme

d) Expand range of board services offered

e) Provide more focus on advocacy

f) Review existing membership and fee structure

We set out a brief description of each area of focus below.

a) STRENGTHEN THE SECRETARIAT

Finding

The Secretariat has been under-resourced for many years and will need to be strengthened in order to provide the necessary support for the Institute’s activities.

Recommendations and planned action

• increase the size and skill sets of the Secretariat

• appoint a full time CEO

• explore collaboration opportunities with professional organizations to supplement Secretariat with specialized skills

• develop annual objectives for the Governing Council, Sub-committees and Secretariat

• expand and strengthen relationship with other regional director institutes and global corporate governance advocates

b) ADDRESS TRAINING PROGRAMME AND DELIVERY

Finding

Singapore directors attend little formal training (on average). A more holistic curriculum/broader delivery methods are adopted by the leading global Institutes.

Recommendations and planned action

• consider adoption of education vision: “For Directors, By Directors”

• address priority topics: Audit Committees; Risk Management and Internal Control; SME/family run/Catalist companies; overseas directors

• supplement current programme with a Continuing Education Programme (“Road Map”)

• introduce continuing education courses (specific technical courses, technical updates)

• consider entity specific courses (public sector, not for profits, family run companies) and courses for the experienced director/Chairman

• continue SGX-SID Understanding the Regulatory environment in Singapore and add other “fundamentals” training

• continue SMU collaboration (certificate and diploma courses)

• review alternative accreditation mechanisms, including those used by non-IOD bodies such as the Australasian Compliance Institute (ACI)

• seek collaboration opportunities with other Institutes, both locally and internationally

• initiate discussion groups on focussed governance to pics

c) DEVELOP A MORE ACTIVE BUSINESS EVENTS PROGRAMME

Finding

More frequent, quality speakers requested in seminars.

Recommendations and planned action

• establish a rolling 12 month programme of headline speakers

• prominent international and local personalities

• at least one event per month

• more breakfast and evening timeslots

• address niche topics

d) EXPAND RANGE OF BOARD SERVICES OFFERED

Finding

Other Institutes offer a broader range of Board services.

Recommendations and planned action

• continue regular Directors Survey but increase frequency to annually

• supplement Bulletin with more frequent publication providing regulatory and other topical updates (eg. monthly, sponsored)

• publicise SID’s Directors Register (short term); establish on-line, searchable register (medium term)

• establish web-site links to providers of Board Services

• consider on-line directors evaluation service

• selectively review other services offered by other Institutes

• in depth study on specific directors topics (compensation etc)

• significantly increase the functionality and content of the web-site

• provide on-line access to past SID publications, such as the Bulletin, good governance statements, speeches and media comments

• research the feasibility of introducing more technologically advanced services to members

e) PROVIDE MORE FOCUS ON ADVOCACY

Finding

SID should continue to make their opinions on Corporate Governance issues even more evident.

Recommendations and planned action

• develop an advocacy agenda

• consider process to involve more members in determining positions

• more position statements and best practice guidance

• better communication of SID’s existing engagement on governance topics continuing or further involvement (and advertising of this fact) with well regarded international bodies (OECD, International Corporate Governance Network, Global Directors Development Circle)

• continue active involvement in corporate events related to corporate governance

• continue active participation in Committees established to address governance issues (eg ACGC)

f) REVIEW EXISTING MEMBERSHIP AND FEE STRUCTURE

Finding

The cost of individual SID membership is among the lowest of the leading institutes of directors studied.

Recommendations and planned action

• explore new membership and pricing structures

• greater focus on sales and marketing

• explore market for a corporate membership class

• review alternative pricing strategies for individual membership subscriptions and training courses

• request SGX to encourage companies to support SID

Effective 16 January 2009, a new Chief Executive has been put in place and working with the Governing Council he will have prime responsibility for the successful development and implementation of the plans outlined above.

It is expected that it will take up to 24 months for many of these plans to be put in place but 2009 will see the commencement of many new initiatives that will form a strong foundation upon which the vision of the Institute will be built.

The Institute looks forward to the support of all members and the corporate community in its quest to become a truly world class directors’ institute.