Tag: Ethics

Jewellers: Let’s Get Planting!

July 24th, 2017   •   no comments   

Since the turn of the century jewellers have come under sustained pressure from campaign groups to consider the human and environmental costs involved in extracting the raw materials that they subsequently sell as finished products on British high streets. Numerous campaigns have sought to raise the collective consciousness, and retailers – as the interface between consumers and the supply chain – were encouraged to apply pressure on their suppliers to bring about change.

In the jewellery context, precious metals, diamonds, and gemstones are viewed as the main ‘offenders’ and their extraction and processing has been blamed for conflict, oppression, human rights abuses, exploitation, and displacement of indigenous peoples. Not to mention environmental degradation. Gold and diamonds, which for these purpose we can think of as the principle commodities, are extracted in many places around the globe. However the continent of Africa has historically been considered the main source of both. With large corporations and artisanal miners both bringing raw material to market.

It might be tempting to view the big mining companies as the villains of the piece, but they have done a lot to improve working conditions. It mustn’t be forgotten that, whilst small-scale artisanal miners may be less visible, they often leave an equally poor environmental legacy.  Starting with the clearing of the ‘overburden’ that includes trees, vegetation, and topsoil, and leaving behind degraded subsoils potentially contaminated with mercury and cyanide (See Paul Laird’s report from Ghana about illegal gold-mining near to Montonnso Sacred Forest.)

During my twelve year tenure as former CEO of the National Association of Goldsmiths I witnessed a lot of good work done on cleaning up the supply chain. Members of the Responsible Jewellery Council (RJC), for instance, now commit to – and are independently audited against – international standards on responsible business practices for diamonds, gold and platinum group metals that addresses human rights, labour rights, environmental impact, mining practices, and product disclosure in the jewellery supply chain.

My friend Greg Valerio on the other hand has worked tirelessly on the plight of artisanal miners, latterly championing the work of the Fairtrade Foundation. Their Fairtrade Gold scheme speaks directly to consumers about the effect their choices have on others, and the modest premium they pay improves the lives of small scale miners around the world.

Since leaving the NAG I have involved myself with the work of the International Tree Foundation (ITF). But this isn’t about ‘do-gooding’ or tree hugging! Just like Fairtrade, ITF’s work results in real incremental improvements in living standards, the environment, and well-being. Working in partnership with local organisations we support community forestry projects both in the UK and Africa. Helping to build secure livelihoods and improve the local environment through sustainable tree planting programmes. In Kenya alone there are plans for 20 million trees by 2024!

Yes, the planting and conservation of trees and forests does improve biodiversity, soil quality, water- retention and the air we breathe. But trees are also a source of economic benefits including fruits, wood, fibres, gum, cosmetics, and medicines. And they supplement livelihoods in rural areas.

International Tree Foundation works with businesses to engage their staff and customers in tree planting initiatives across Africa and in the UK. If you are interested in improving ecosystems and livelihoods, and in communicating your commitment to sustainable development to your clients and employees, then get in touch.

You can call 01865 318 832 or email info@internationaltreefoundation.org for further information on their business partnerships scheme.

OUR MISSION

FLUX: Fair Luxury

April 25th, 2016   •   no comments   

Thirteen years as CEO of the now defunct National Association of Goldsmiths (NAG) and I was beginning to experience a sense of frustration that the debate on transparency and trace-ability in the jewelley supply chain was going around in circles! After more than a decade of work – heroic efforts by Greg Valerio and Fairtrade Gold, and a bucket load of green-wash from other quarters – I was starting to feel that the pool of committed people was almost saturated and that we were now just having a circular debate within a group of devotees to the cause. But the recent FLUX: REDEFINING LUXURY conference has restored my faith!

The True Cost

Now, after three years watching from the side-lines, I’m immensely encouraged to find that the message is again reaching a wider, grass-roots, audience of designer makers. Why is this? Well, persistence is one reason, recognition another! The award of Greg’s MBE contributed new impetus and pushed ethical gold several notches up the awareness ladder. Ethical fashion has helped too.

Valerio 1

Greg Valerio

In 2000 – when I first became involved with retail jewellers – many didn’t really get the connection between themselves and the fashion industry. But brands and diverse materials have broadened their horizons, and cemented the bonds between jewellery and fashion. Interestingly fashion and jewellery have been running on parallel tracks when it comes to ethical supply chain issues too.

Both are concerned with provenance, the elimination of destructive environmental practices, human rights violations, and exploitation of local workers. But their gestation periods have been different. Environmental and exploitation anxieties about gold, precious metals, and diamonds matured over decades, reaching their tipping point with the No Dirty Gold and ‘blood diamond’ revelations early this century.

Similarly, the extraction, and consumption of water during cotton cultivation and subsequent pollution in the processing of fabric has long been an environmental concern for the fashion industry. The universality, accessibility, and relentless rapidity of fashion trends – ‘fast fashion’ – has accelerated that destruction but also propelled the possibility of change in the garment industry. The durability, value, and complexity of jewellery, has driven change more slowly.

Fashion Revolution 1

Fashion Revolution

Fashion Revolution was born, in the wake of the Rana Plaza collapse in Dhaka, Bangladesh, that killed 1,134 and injuring 2,500 others.  Its belief that ‘fashion can be made in a safe, clean and beautiful way, where creativity, quality, environment and people are valued equally’ seems to me to be the fundamental linkage between jewellery and fashion! Thanks to Greg, Fairtrade Gold, Lina Villa from ARM, and Orsola de Castro of Fashion Revolution for bringing that fact vividly to life!

Michael Hoare

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A Gem of an Idea!

April 11th, 2016   •   no comments   

Gem Idea Graphic

The jewellery industry has been angst-ridden for most of the current century over the moral, ethical, and environmental damage done by the exploitation of gold and diamonds. Child labour, the blighted lives of miners, the spoil left by extraction, the financing of civil wars, and the buttressing of repressive regimes have each left their own stain on the industry. The Kimberley Process, the Dodd Frank act, OECD Due Diligence, and subsequent legislation, attempted to deal with these concerns, and bring forth order out of chaos. However, the plethora of initiatives in the supply chain remains perplexing for retailers, and those that want to trade ethically.

As CEO of the now defunct National Association of Goldsmiths (NAG) and a founding Director of the Responsible Jewellery Council (RJC), I worked with NGOs and others for over a decade to influence the practices and policies of miners, refineries, processors, wholesalers, retailers, and banks in their efforts to regulate and monitor the movement and provenance of gold and diamonds within the supply chain.

Today, rigorous policies – both imposed and self-policed – are impacting on the tracking of both commodities back to responsible origins.  But the work still isn’t complete, and the industry still needs to shore up its claims to social and ethical sourcing with transparency, trace-ability, and communication across the entire supply chain, before retailers can trade with complete confidence in the attribution of their stock. Platinum group metals have also been added to the scope of the RJC, but one of the unsolved problems remains the provenance of coloured gemstones!

Therefore the announcement of the launch of a technical feasibility study to include coloured gemstones into the scope of the RJC should be music to jewellers’ ears.  But, past experience of working alongside the Gemmological Association of Great Britain (Gem-A), whose work is the study and identification of gemstones, I am acutely aware how complex a task it is likely to be. Not just because of the range of stones, but because of the fractured supply chain.

Artisanal and small-scale mining (ASM) – labour intensive and often in remote and inaccessible areas – still accounts for the majority of the worldwide supply, raising obstacles to transparency and trace-ability at even the production stage. Compared to diamonds, the supply chain of coloured gemstones is highly complex, making it nearly impossible to trace their trajectory from mine to end-user.

Mined in roughly fifty countries – located mostly in the global south – gemstones pass through numerous hands before being polished, transformed into jewellery and sold in the international retail market.  And – unlike diamonds – the coloured gemstone supply chain doesn’t have a history of being governed by a centralised cartel, so opportunities for human rights abuses, environmental damage, and illicit activity, are legion.

So, while the RJC’s intentions are entirely laudable, their desire to plug the remaining gaps admirable, I think we should all recognise that the road ahead will be strewn with moral and ethical boulders, and some will be very difficult to work around!

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Michael Hoare

Contact me on info@michael-hoare.co.uk for strategy, communications, and public relations consultancy.

Disruptive Diamonds

February 9th, 2016   •   no comments   

For most of the twenty-first century the jewellery industry has agonised over the moral, ethical, and environmental damage done by the exploitation of diamonds. Be that in terms of child labour, the blighted lives of miners, the spoil left by the extraction process, the financing of civil wars, or the propping up of repressive regimes. The Kimberley Process, and subsequent legislation, attempted to bring forth order out of chaos.  But in 2006, the Hollywood blockbuster movie ‘Blood Diamond’, starring Leonardo Di Caprio, pricked the conscience of the industry and brought the subject back into public focus. The actor’s name has been linked with low-level anti diamond activism to this day.

Disruptive Diamonds V2

Industry insiders don’t need reminding of all the arguments that have ricocheted to and fro ever since. Initiative has piled upon initiative in an attempt to improve the situation – or create a thicker smoke screen – depending on your point of view, and the depth of your cynicism.  At the same time the hunt has been on for verification systems that could guarantee the provenance of natural diamonds, or for diamond substitutes that provided glitz without guilt. Cubic Zirconium was a passable diamond simulant, but lacked the cache of the real thing and, whilst man-made synthetic diamonds were theoretically possible, it wasn’t until the barriers came down across Russia that the technology to manufacture them became readily available.

So, imagine the kudos attaching to a company that not only claims to be able to manufacture quantities of large synthetic diamonds relatively quickly and economically, but also secures an investment and an endorsement from Di Caprio! Not only will his money come in handy, his publicity value is enormous! But Diamond Foundry isn’t actually too short of money, having secured the financial backing of six billionaires in making products that they claim are “ethically and morally pure”, and selling them – already set in jewellery – direct to consumers.

Naturally enough, there has been a backlash, with an open letter to Di Caprio, from Bob Bates of JCK Online, questioning the basis of the company’s environmental claims, highlighting the social and economic impact on mining communities in Botswana, South Africa, Namibia, and Sierra Leone and raising fears about the effect of commodification on prices. So, the argument over who benefits most from diamonds – the miners the middle-men or the financiers – and who will suffer most from the proliferation of synthetics rumbles on.

However, regardless of the arguments or judgements about who is morally or ethically right, the underlying theme of this debate is one that we will return to regularly over the next decade. For here is a classic example of a disruptive innovation. One that has the potential to create a new market and value network – disrupt existing ones – and displace established market leaders and alliances. Think Alibaba, Amazon, and Uber!

As we plunge into Industrial Revolution 4.0 it becomes easier to make money than even twenty-five years ago. Setting up and running a mine is expensive and requires a lot of manual workers. A company that makes its money out of a smart app needs less capital, doesn’t incur the same infrastructure costs, and virtually no extra outlay as the number of users rise. In other words, the marginal costs per unit of output tend towards zero. That’s why tech entrepreneurs get very rich very young!

Oxfam recently highlighted that the sixty-two richest billionaires own as much wealth as the poorer half of the world’s population put together. The world is becoming polarised between the ‘haves’ and ‘have-nots’.  Against this backdrop, regardless of ethical, or environmental concerns, the initial losers will be those at the bottom of the heap.

What if the ‘direct-to-consumer’ model proliferates – undermining established practice and traditions, atomising existing supply chains, shedding jobs, and vaporising careers? As wealth passes from old style mine owning corporations to billionaire technology pioneers and venture capitalists – concentrating it in fewer hands – who will be the winners and losers? Regardless of the short-term disruption, where are innovations like these taking us, and what will be the effect on society in years to come?

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Michael Hoare FIAM

Reviewing your strategy, communications, or public profile? Can I help?

info@michael-hoare.co.uk

 

 

All in Your Head? Qualities of an Association Chief

November 3rd, 2015   •   no comments   

What does an association CEO actually do? Good question! A combination of politician, ambassador, tactician, and showman you might say. And a small business leader to boot! OK, but what qualities does a good CEO need to succeed? That’s a question that involves a long answer and one which will be unique to each trade or professional association. The Institute of Association Management has produced a list of the 13 key attributes of association management CEOs which is handy for ticking off the bullet points on a job description. But I believe a great CEO has both emotional and analytical skills. And don’t forget the physical aspects of the job too!

Head

The very essence of any membership organisation is communication. Be it oral, written, or via social media, the CEO – especially in a small organisation – is generally the communicator in chief. Engaging, communicating, empathising, should be in their DNA.  But don’t mistake this for broadcasting! Communication is a two-way street, with ideas flowing in and out. Thought leader you may be, dictator you are not! Sometimes you’re an agony aunt listening, analysing, and resolving professional and personal issues with board members, officers and staff. And only occasionally will you get to unleash you inner Henry V!

Politician, ambassador, and diplomat are also within the remit of the successful CEO. The ‘conduct of relations between nations by peaceful means’ is how the dictionary puts it. But the ability to communicate and negotiate at all levels with people from different backgrounds and organisations and cultures is probably closer to the mark. So, it goes without saying that you must be a people person, able to connect, and be approachable.

A lot of hot air is expended on the subject of leadership. Quite whether leaders are bred or nurtured isn’t clear. But whichever it is, you won’t go far as an association CEO without this quality.  Motivating and managing Boards, volunteers, officers, staff, and members, is an uphill battle unless you have natural leadership qualities. Brushing up your skills can’t hurt, but personally I don’t put much faith in self-help books, mantras, and seven point plans. Leadership is a complex formula that mixes head and heart in different quantities according to the situation. Ticking boxes just isn’t enough!

Entrepreneurship is frequently required to devise and exploit money-making schemes. Unless you are very fortunate there is generally a gap between the income from membership subscriptions and out-goings. In most cases it will be down to you to fill it, and this is where your innate business acumen comes in. The business person in you will always be switched on.  Identifying, developing and implementing events, training, publications, sponsorship, and other income generators.

To quote George Orwell’s “Who controls the past controls the future; who controls the present controls the past” or, Winston Churchill’s, “History will be kind to me for I intend to write it”, in the same sentence may be to stretch an analogy to breaking point. But it neatly illustrates what politicians and historians have always known; that control of the written record confers power on the author. So, in the association context, the person who signs off the Minutes, or writes the business-plans, reports, and memoranda, wields considerable authority. If they in turn translate the decisions of the Board and sub-committees into actions, they influence the speed and direction of travel. And if they can also write meaningful articles they control the narrative that influences internal and external observers.

So, armed with the skills of a planner, guiding strategic direction of the association and developing appropriate plans; a project manager, planning, directing and implementing major projects and events; and a lawyer, familiar with company and/or charity law and appropriate regulations, you will be almost fully equipped. But not quite. Because the ability to understand budgeting, accounts and reporting, and have a firm grasp on governance are also essentials in the CEO’s tool kit.

Finally, and not to be underestimated, are the physical and mental resilience needed to withstand a punishing schedule. A thick skin, the capacity to act alone, and brush off occasional assaults on your reasoning, integrity, and goodwill are a must! And a robust constitution is a blessing! Early mornings, late nights, travel – in the UK and abroad – all take a physical toll. As do the demands of ‘socialising’, which may involve excess eating – and other temptations – and maybe even loss of sleep! Add that to the need to always be well turned out, bright-eyed and receptive, and you’ve cracked it!

Reviewing your strategy and communications? Can I help?

Over twenty years’ association management experience.

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Michael Hoare FIAM

Skilled Navigation for Associations

September 30th, 2015   •   no comments   

Benjamin Franklin supposedly once said, “If you fail to plan, you are planning to fail” whilst Thomas Edison is credited with, “I have not failed. I’ve just found 10,000 ways that won’t work.” Both are catchy quotes, but do they get us any closer to understanding the value of planning? Learning from our mistakes is one thing, but doing only that would be a random, time-consuming, and even dangerous way to manage!

Rowing 8

Think of your role running an association as being the cox of a rowing eight. With your team-mates all powering away with one sole objective, it looks like you’re having an easy ride sitting at the back. But really your focus is half a mile ahead to the next bend, and beyond that to the finish line. Your team all want to get across the line, but you are the one making gentle adjustments to the tiller and varying the pace and power input to suit conditions, all with the longer view in mind. Make unreasonable demands on your crew and they burn out too soon. Yank the tiller from side to side and you collide with the competition, strike a bridge, capsize, or hit the bank. To win races you need an agreed objective, a strong crew, and a skilled navigator with a clear view of the course ahead and a vision of what lies beyond the bend!

Only trouble is, some associations lack clear objectives, or lose sight of them amid the pressures of day-to-day survival. So staying on track, let alone changing course to avoid fresh obstacles, is a challenge; new initiatives a test of stamina. So it’s hardly surprising that almost 70% of projects fail to hit target. But the reason they fail isn’t always lack of effort from the crew, but failure to do adequate research and forward planning. What’s needed are strategic objectives, wisely allocated resources, effectively managed time, and a clear change methodology. And perhaps that way we’ll stop trying to fix organisations symptomatically rather than systemically.

Of course, one of the challenges for bosses is finding the time and head-space to research and plan. And like-minded brainstorm partners! Or better still a skilled and objective third party to guide you through writing an unfettered wish list of the things you’d like to magic away. Having attributed a 1-10 pain scale to those issues, you can thin them out by trimming anything below an 8 to derive an initial agenda. Ranking these again, this time for difficulty between 0 (requiring an act of God) and 10 (easy-peasy), and having considered the ‘rocks in the road’ which will either block further progress – or stimulate a burst of tangential or transformative thinking to get around them – a final set of challenges will emerge.

Only now is it time to look at the belief system, readiness, and capability of your organisation. Break them into their component parts, and analyse the gaps between your ultimate objective and the organisation’s current readiness. Along the way you’ll also have to account for critical mass, survivability, impact on the team, and the impact on your membership and financials.

By the end of all that you won’t be in any doubt when somebody asks, “What is the process for accountability and quality of execution of your mid-term plans? Is there a process? Have you separated it from operational and everyday management? And, are the right people involved? You could, with equal confidence, break the familiar logjam of continual ‘circular’ re-examination of the same issues, that so bedevils so many membership boards! Or would that be too much to ask?

Reviewing your strategy and communications? Can I help?

Over twenty years’ association management experience.

Bavaria 1

Michael Hoare FIAM

Institute of Association Managers

All Aboard the Association!

September 21st, 2015   •   no comments   

It may be flattering to be asked to join your trade association’s board but it could also be a very bad career move. So, before joining, you should conduct your own due diligence, and start by asking some probing questions.

All aboard the associationServing as a board member is one of the most challenging and rewarding of assignments, whether in the commercial, not-for-profit, or membership sector. But, while appointment or election may be an honour, board members have important legal and fiduciary responsibilities that require a commitment of time, skill, and resources. Prospective board members should do themselves a favour – and show that they are serious about the commitments they make – by asking some basic questions before joining any organization’s board. Probe the member who issued the invitation to join; the chief executive; the chairperson; and other current and former board members. Anyone with inside knowledge!

Start by asking for copies of the board minutes from the last 12 months and study them to see what has been agreed and achieved. You’ll find yourself defending those decisions whether you like them or not! Note how many directors showed up to meetings, and whether decisions were reflected in the company’s strategy and performance. While you’re at it find out what the organisation’s mission is, how its current programs relate to it, and if they have a strategic plan that is reviewed and evaluated on a regular basis?

Study the calibre of the other board members. Find out what experience they have, what they have done in their past careers and what their reputations are like in the industry.  Most importantly of all, check out the chairman. A board’s performance will reflect their talent and management abilities. After all, this person is the board’s manager.

The chairman should oversee each meeting, keep discussions on track and on topic, and recognise when there is an issue – when a topic is too big to be solved in one meeting – and when offline meetings, or further information-seeking sessions, are required. A good chairman will recognise when specific directors are struggling or not pulling their weight, and will take action. And when certain directors are overly forceful in their opinions, a great chairman will restore balance and ensure every voice is heard before a decision is made.

He or she should also be able to tell you about the structure. What about descriptions of the responsibilities of the board as a whole and of individual members? What about committee functions and responsibilities?  Is there a system of checks and balances to prevent conflicts of interest between board members and the organisation? And for your own peace of mind, does the organisation have directors and officers liability coverage?

Problems aren’t always visible from the outside. After all, a board’s job is to appear balanced and always in agreement even when it is not. So look for signs of dysfunction. These include regular resignations and appointments; organisational underperformance; the constant missing of objectives; and the CEO and senior management struggling for support. What about the board’s relationship to the staff – particularly the executive staff – and how do board members and senior staff typically work with each other?

Do a bit of probing into the finances too. Are they sound, does the board discuss and approve the annual budget, and how often do board members receive financial reports? Who does the organisation serve, and are the clients or members satisfied?

Once you’ve done all that, get down to the personal stuff.  What can I can contribute as a board member? How much of my time will be required for meetings and special events? Am I committed to the organisation’s mission? Can I put its objectives above my own professional and personal interests when making decisions as a board member? Can I contribute the time necessary to be effective?

If you can answer all those questions to your own satisfaction you’re almost there. Now all you’ve got to do is get elected!

Reviewing your strategy and communications? Can I help?

Over twenty years’ association management experience.

Bavaria 1

 

 

 

Michael Hoare FIAM

Associations’ Digital Democracy Dilemma

August 26th, 2015   •   no comments   

As the Labour leadership contest proved, the merest hint of uncertainty over the conduct or legality of a selection process can seriously damage the credibility of an election in the minds of the voters. Even a whiff of mismanagement will leave a bitter taste of dissent lingering amongst the electorate.

Cock-up or conspiracy all become one in the minds of those who have begun to question the validity of the process and therefore the result. My recent experience confirms that some associations’ procedures are in desperate need of independent scrutiny.  And history has shown us that governments adopted on the basis of a dubious selection process almost always fail to maintain the trust of the people. Except, of course, for dictatorships, and they just don’t care!

Do turkeys vote for Christmas?

Do turkeys vote for Christmas?

So, electing governments is one thing, what about day-to-day decision-making?  How many times have you, as a trade association manager, been asked your membership’s view on a particular issue, policy, or piece of legislation, only to realise that you are completely in the dark? And, in all honesty, how many times have you responded to such an enquiry – possibly from the press – with your own best guess; hoping that the majority would tow the party line and follow you over the barricades into the thick of battle?

We’ve all done it, and because we’re all seasoned campaigners – with our ears to the ground – we generally get away with it. But what if your judgement call goes awry? Second-guessing the mood of your constituency is a risky business, and careers can be seriously dented by getting it wrong. Why not limit the risk by asking your members what they really think? Most often, the answer to that question is that to do so would be costly, time-consuming and possibly wasteful. But what if it was none of these? Enter the digital democracy!

A couple of years ago, during a fascinating IofAM discussion,  – which utilised SMARTvote devices to take quick polls from the floor and encourage discussion around various points – Electoral Reform Services (ERS) asked participants to consider if digital technology could be applied to democracy. Along the way they demonstrated that online voting is an effective way to reduce an association’s printing costs, provide wider communication choice for members and be more environmentally friendly.

However, not everybody is comfortable with computers and it is vital in a democracy to ensure that no voter is disenfranchised: the right mix of communication methods need to be employed. Maximising communications and using social media within an election context is a powerful way to raise its profile and foster engaging discussion with the electorate. But unfettered it can also backfire badly leading to the dissemination of half-truths, falsehoods, and even character assassination.

So digital democracy is about much more than just social media. There are other barriers to voting online. These include lack of trust in the security of the process; technophobia; and voter fatigue or cynicism. However, as more commercial transactions take place digitally, and security improves, electorates may become increasingly comfortable with online voting. And if the effective capture and use of data allows for targeted communications it may also increase the ‘buy-in’ to online polling and elections.

But where does that leave Association management skills? Will there be any further need for judgement and experience once all options can be tested – Swiss style –  by referendum and all decisions can be digitally ‘crowd sourced’?  Can we really trust the wisdom of crowds to get us through? Or is a wily CEO with his / her ear to the ground still the best barometer of member opinion?

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Michael Hoare FIAM

Strained Relations in Associations

August 13th, 2015   •   no comments   

Association executives will all have experienced difficulties with presidents, chairmen, or directors. They are a mixed bunch and over the years the good, the bad and the ugly come and go. Never-the-less, as professionals you have to get on with them, accept their peculiarities and petty likes and dislikes whilst the serious business of governance goes on.

Adore and Endure

Endure possibly, adore maybe!

In my twenty-odd years’ working my way up through membership bodies, trade associations, and charities, I’ve discovered that Boards come in many shapes and sizes. Each adopting a different attitude to the responsibilities they have taken on – sometimes unwittingly. They range from the indolent to the hyperactive, the distant to the micro-managing, and all shades in between. Their attitude to the chief executive and secretariat can also vary wildly.

Some directors see the association as their personal fiefdom, with the staff as serfs to do their bidding; the chief executive’s prime functions – in their view – to ensure the success of the golf day and the quality of wine at the annual dinner. Such attitudes stem from the days when association secretaries ruled; when finding a place on a Board or committee was one way for family firms to distract patriarchs who refused to step aside; when a culture of amateurism prevailed; and directors’ focus was sometimes blurred.   In my time I’ve met them all – the commanding, the conniving, the conceited, and the committed – but when it comes down to it there are two distinct types of association Board. One meddles and micro-manages in the mistaken belief that as business people themselves they must be able to do better than their ‘employees’. The other understands their strategic role but accepts that the secretariat are professionals – experts in their field – with the CEO taking operational responsibility on a day-to-day basis. Only the chairman can determine which route they take.

But don’t let’s fool ourselves, chief executives can be a mixed bunch too.  Perhaps best described as entrepreneurs, showmen, and diplomats all rolled into one, they have to juggle the often conflicting interests of their members to achieve consensus, and they can be complex characters. Nevertheless the key relationship is that between the chairman and the chief executive, and trouble follows where this fails. As well as a shared commitment to the cause, relationships must be based on mutual respect and trust. They must be frank and open, with problem areas being addressed amenably. Empathy, communication, humility, and self-awareness are the key differentiators.

Team Shirts 4

Associations are a team effort

The two roles must be complementary. The chairman is responsible for leading the business of the Board while the chief executive manages the association’s business. The chairman and the chief executive must be aware of each other’s activities and work together as a team. The duties of the chairman – a non-executive role – arise from their position as the chief elected officer of the association and their responsibility for presiding over its official business and the Board. The chief executive is responsible to the chairman and the Board for directing and promoting the operation and development of the association consistent with its primary objectives. In so doing they exercise executive stewardship over the association’s physical, financial and human resources.

There used to be a joke along the lines of, ‘what’s the similarity between a non-executive director and a shopping trolley?’ Answer: ‘They both have a mind of their own, but you can get more food and drink in a non-executive director!’ It may be an old chestnut, but it illustrates that the fault line between executive and non-executive responsibilities is often where most tension develops. Some secretariats are resentful of the oversight of a largely non-executive Board that they sense doesn’t share their vision or commitment – or jeopardy to their income – or appreciate the skills and professionalism they bring to a difficult job.

Therefore, not-with-standing their fiduciary responsibilities, and duties to members, every Board must remember that the lively-hoods and well-being of all those employed by the association are at stake and the consequences of ignoring this fact can be enormous. Believe me, I’ve been on both sides of the fence, as director, chief executive, trustee, and humble foot-soldier, and I know how morale suffers when internecine warfare sours relations or the Board appears to lose the plot!

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Michael Hoare FIAM


Please Note:

Members of The Gemmological Association of Great Britain can log in and find details of the 2015 Council elections on the Gem-A website, including a proxy voting form for those wishing to caste their vote online.

The Gem-A Manifesto by Ronnie Bauer, Kathryn Bonanno, John Bradshaw, Guy Clutterbuck, Michael Hoare, Alan Hodgkinson,  Alberto Scarani, and Greg Valerio is available from info@michael-hoare.co.uk