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IOD Special Talk - Building a Legacy of Excellence

By- Institute of Directors | Authored by- Eugene Mayne


Securing the Future with Visionary Governance

It is a great pleasure to be here and to present to you this morning. Firstly, I would like to extend my deep appreciation to IOD, with whom we have a long association going back several years.

To introduce myself, I am the founder and CEO of the Tristar Group, with a presence in 30 countries spread across the Middle East, Asia, Africa, Europe, the Pacific, and the Americas servicing the downstream oil and gas industry.

Since inception, our business was founded on the concept of the triple bottom line of profit, people, and planet.

Therefore, we must strategise and measure performance not solely on financial gains but also on the social and environmental impact of our business.

I am of the strong belief that one must place purpose alongside profit to secure the future of their companies.

We live in an era marked by rapid technological advances, economic fluctuations, and shifting societal expectations. Each of these elements brings challenges and opportunities. The role of a board in this dynamic environment is not just oversight but foresight anticipating changes, preparing for them, and, when possible, turning them to our advantage.

To navigate uncertainty, we must enhance our risk management techniques and integrate scenario planning into our strategic reviews. This involves not only identifying risks but also developing detailed, flexible strategies that enable quick responses to various potential futures.

Scenario planning allows us to test our strategies against possible disruptions, ensuring resilience and agility.

Innovation is no longer optional; it is crucial. We must build a culture that embraces change, encourages experimentation, and fosters continuous improvement. This means investing in new ideas and technologies while also remaining adaptable to pivot quickly in response to new information or market shifts.

In business, in the corporate world, and in the public domain, 'second-order thinking' calls on board members to consider the long-term implications of our choices. To make decisions not just for what feels good now, but for what will lead to the best outcomes over time.

Sustainability and social responsibility are increasingly seen as drivers of long-term success. By integrating Environmental, Social, and Governance (ESG) factors into the investment decision-making process, we not only foster ethical operations but also open new avenues for growth and innovation. This approach strengthens our brand, builds trust with stakeholders, and ensures compliance with evolving regulatory landscapes.

Real success is not measured just by financial metrics but equally by social, emotional, and environmental ones. It is about value as perceived by customers, clients, employees, stakeholders, and society at large.

Many companies emphasise customer service and aim to maintain a competitive edge, but most fail to address the crucial question: Why does a particular company or product matter? Outperforming competition and staying profitable may miss this point altogether.

In a world teeming with choices and options, what makes a business stand out is not just service quality or profitability but its inherent meaning and relevance. To be important, impactful, and, if we are lucky, to be indispensable to the entire stakeholder universe.

Investors today are looking beyond just financial returns they want to know how their investments are contributing to a better world.

This means tracking metrics like carbon emissions, social benefits delivered, or governance standards improved.

To make them think of us first, to be perceived as first, we need some second-order thinking.

In our daily lives, we are largely driven by first-order thinking. We make decisions based on what makes us happy now, what eases our current discomfort, or satisfies our immediate desires.

Second-order thinking is the thought process that goes underneath the surface level, past the kneejerk reactions, and beyond short-term gains. It asks us to anticipate the ripple effects of our actions and to make choices that will benefit not just us, but many others. And not just today, but in years to come.

Second-order thinking is how a chess master contemplates the next move. He or she does not consider how the move will affect the next turn but how it will shape the entire game. Chess masters also think many steps ahead: they consider their own strategy and their opponent's likely responses.

In business, in the corporate world, and in the public domain, second-order thinking calls on board members to consider the long-term implications of our choices. To make decisions not just for what feels good now, but for what will lead to the best outcomes over time.

Good governance is the moral and practical foundation upon which a strong company and its sustainable future are built. As board members of these companies, our decisions have a ripple effect: reaching beyond our offices, into the communities we serve, and impacting lives beyond our view. It means using our influence to act with integrity, build trust, champion transparency, and steer progress. It means holding ourselves accountable and responsible for these tasks.

There is no shortage of societal causes or environmental concerns that boards can include or address as part of their strategies to secure the future whether it is parity, prosperity, inclusivity, diversity, or reducing the many inequalities in the world.

Keeping customers, employees, and investors happy is no mean feat. And the task can be daunting, no doubt. But we have to start somewhere, and we have to do something.

When we know what is coming, we prepare. But when we don't know what's coming, we must position.

If we have an appointment tomorrow, we factor in travel time. If we have a presentation next week, we rehearse. If we know a big bill is due next year, we plan for it over months. None of us know what's going to happen to our health, but we strengthen our positions with diet and exercise. We position ourselves against potential losses.

Being well-positioned enables anyone to come out ahead, no matter what obstacles the unknown may present.

Sometimes, we don't push as hard because there is no personal mission, there is no real reason to adopt a cause, or embrace a set of reforms. At other times, we are disillusioned because we can't see immediate results.

With large goals, success comes down to our ability to endure over the long term with resilience and persistence. It is about playing the long game. It is about building a legacy.

I would like to exemplify this in tribute to a giant of the global industry a man who was respected for his business acumen but is remembered for so much more.

Ratan Tata spent the majority of his career turning a largely India-centric group into a global business empire and in actively shaping social development. He acquired Tetley, Jaguar, Land Rover, and Corus but used much of their profits to support philanthropic work, on their own and by partnering with governments, non-profits, and international organisations to address critical issues such as healthcare, education, scientific research, and rural development.

It is not amiss to say that his business interests included cars, steel, hotels, travel, tea, and the people of the world. The well-being of people formed the core of his business.

During his 21 years as chairman and chief executive, the Tata Group's profits multiplied 50 times, but Mr. Tata also personally backed more than 50 startup companies in India. In India, he disbursed much of his personal fortune on education, health, and agricultural projects for his poorer countrymen. In the US, he contributed millions of dollars to several universities for research facilities and scholarship programs.

He used his clout, his conviction, and his considerable wealth to enhance the quality of public life and foster societal progress. His compassion and quiet resolve, his support for innovation, and his sensitivity to the struggles of ordinary people transformed many million lives.

Today, one month after his passing, his legacy is larger than all his businesses put together. This was cemented by his deep sense of responsibility to other people and to make things better for everyone.

If we can draw a fraction of inspiration, let it be from Ratan Tata's words: “I would like to be remembered as someone who made a difference; nothing more, nothing less.”

As owners of businesses, as members of boards, as governors of communities, let us pledge to secure the future in all the ways we can and must:

- To seek common ground and find commonsense solutions to the challenges we all face;
- To do things not merely to score points but to make real progress;
- To raise the bar to raise the results.

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Author


Eugene Mayne

Eugene Mayne

Founder and Group CEO - Tristar Group, UAE

Owned by: Institute of Directors, India

Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.

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