Feedback drives improvement in every field, but you have to overcome the behavioural barriers

1. Stream sponsored by: Media partner:

2. Stream sponsored by: Media partner:
ARNO KITTS – SESSION CHAIR
CRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
PLSA DB COUNCIL

3. Stream sponsored by: Media partner:
CHRIS HOGG
CRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
CHIEF EXECUTIVE, ROYAL MAIL PENSIONS TRUSTEES

4.  Set the scene
 Is there an issue?
 Our survey helps to clarify
 Then over to Paul…
WHAT AM I GOING TO COVER?

5. “ALL MEMBERS HAVE THE
RIGHT TO EXPECT THAT THEIR
RETIREMENT SAVINGS BENEFIT
FROM EFFECTIVE STEWARDSHIP”
THE PENSIONS REGULATOR, DECEMBER 2016

6. GOOD GOVERNANCE
THE RIGHT PEOPLE
DOING THE RIGHT THINGS
AT THE RIGHT TIME
GOOD GOVERNANCE CAN ADD 1-2% INVESTMENT RETURN EACH YEAR
Source (for the 1-2% statistic only): Ambachtsheer K, Capelle R and Lum H, (2006),
“Pension Fund Governance Today, Strengths, Weaknesses and Opportunities
for Improvement, Financial Analysts Journal, October 2006”

7. SHOCK HORROR
“Eek! A client
asked me for
constructive
feedback on them”

8. OUR SURVEY (1) – RATING OF GOVERNANCE CAPABILITIES
How do you rate your clients’ governance capabilities
in the context of today's challenging operating environment
0 20 40 60 80 100
Very well equipped %
Well equipped %
Acceptably equipped %
Poorly equipped %
Unfit for purpose %
0 20 40 60 80 100
Very well equipped %
Well equipped %
Acceptably equipped %
Poorly equipped %
Unfit for purpose %
Consultants’ responses
Professional Trustees’ responses
WOULD A MEMBER THINK STICKING AT ‘ACCEPTABLE’ WAS GOOD ENOUGH?

9. OUR SURVEY (2) – IS THERE AN ISSUE?
Importance of giving honest feedback
Consultants’ responses
0 20 40 60 80 100
81% - 100%
61% - 80%
41% - 60%
21% - 40%
1% - 20%
None
% of schemes where consultant gives honest feedback
Professional Trustees’ responses
COMPELLING EVIDENCE – THERE IS AN ISSUE
0 20 40 60 80 100
Highly Unimportant
Unimportant
Neutral
Important
Highly Important

10. “ONE CHAIR ENJOYS A ‘WARM’ RELATIONSHIP WITH A
FUND MANAGER AND SUBJECTS THE TRUSTEES TO
LENGTHY QUARTERLY PRESENTATIONS FROM SAID
PERSON WHICH ARE A COMPLETE WASTE OF TIME”
SOME ANECDOTES
“THERE IS OFTEN A STATUS QUO BIAS
AS BOARD MEMBERS LACK
KNOWLEDGE AND CONFIDENCE TO
TAKE DECISIONS”
“ALL TRUSTEE MEETINGS HAD BEEN HELD IN PUBS AND
VAGUELY MINUTED WHEN REMEMBERED”
“THE CHAIR IS POORLY SUITED TO THE
ROLE AS LACKS SKILL TO FACILITATE
DEBATE AND DEVELOP CONSENSUS.
PLAYING THIS PERSON OUT OF POSITION
HAMPERS THE BOARD”

11.  There is an issue
 Member benefits are at stake
 Continuous improvement mind-set is essential
CONCLUSION

12. Stream sponsored by: Media partner:
PAUL RICHARDS
CRITICAL FRIENDS – THE NEED FOR STRAIGHT TALKING
DIRECTOR OF STRATEGY, REDINGTON

13. WHAT DRIVES IMPROVEMENT?
FEEDBACK

14. ADVISER – TRUSTEE FEEDBACK
0 20 40 60 80 100
81% - 100%
61% - 80%
41% - 60%
21% - 40%
1% - 20%
None
On what percentage of the schemes that you work
with have you observed the consultant providing
critical/developmental feedback to the chair/trustees
regarding how they execute their role?
WHY
ISN’T
IT
HAPPENING?

15. TODAY’S SESSION
 The challenges of feedback
 An effective framework
 From framework to structure

16. BEHAVIOURAL FACTORS
 Facing our own imperfections
 Giving people difficult messages
 Bankrupt systems

17. PEOPLE VS. PROCESS
 Good progress on processes
 Committees
 Delegation
Feedback is easier
 Less progress on people elements
Feedback is harder

18. FEEDBACK AND THE TRUSTEE ADVISER RELATIONSHIP
What might stop you giving critical/developmental feedback to your clients?
Strongly
Agree
Agree
Neither Agree
or Disagree
Disagree
Strongly
Disagree
The chair/trustees are
volunteers who are trying really
hard – it’s unfair to criticise
them
0% 13% 23% 56% 8%
Developmental feedback is
uncomfortable 2% 18% 21% 52% 7%
I don’t have the expertise to do it
0% 3% 25% 54% 18%
Not in my scope of work
3% 15% 13% 52% 17%
Risk to the client relationship
10% 57% 18% 15% 0%
Negatively impact ability to work
with the client 12% 57% 16% 13% 2%

19. Radical
Candour
Ruinous
Empathy
Manipulative
Insincerity
Obnoxious
Aggression
RADICAL CANDOUR
Care Personally
Challenge Directly

20. OUR EXPERIENCE WITH RADICAL CANDOUR
Clear and simple language
Moral compass
It applies to everyone
It’s only a framework
It’s still a challenge
shows what’s expected
makes it the right thing to do
we are all in this together
it needs to be done thoughtfully and skilfully
but it gets easier with time

21. BUILDING FEEDBACK INTO THE SYSTEM
Pension Fund
Chair & TrusteesConsultants
School
GovernorsHead Teacher & Staff
SUPPORT SUPPORT
CHALLENGE /
CRITICAL
FRIEND

22. “THE CRITICAL FRIEND IS A POWERFUL IDEA, PERHAPS BECAUSE IT
CONTAINS AN INHERENT TENSION. FRIENDS BRING A HIGH DEGREE
OF UNCONDITIONAL POSITIVE REGARD. CRITICS ARE, AT FIRST AT
LEAST, CONDITIONAL, NEGATIVE AND INTOLERANT OF FAILURE.
PERHAPS THE CRITICAL FRIEND COMES CLOSEST TO WHAT MIGHT
BE REGARDED AS ‘TRUE FRIENDSHIP’ – A SUCCESSFUL MARRYING
OF UNCONDITIONAL SUPPORT AND UNCONDITIONAL CRITIQUE”
JOHN MACBEATH, PROFESSOR OF EDUCATION LEADERSHIP, CAMBRIDGE UNIVERSITY
THE CRITICAL FRIEND

23. TO BE YOUR CRITICAL FRIEND…
What would you need to believe to give your clients full and clear developmental feedback on their capabilities?
Strongly
Agree
Agree
Neither Agree
or Disagree
Disagree
Strongly
Disagree
Support of firm and colleagues
16% 54% 23% 7% 0%
I won’t be ‘punished’
20% 59% 18% 3% 0%
It won’t compromise the
working relationship 29% 56% 10% 5% 0%
The chair wants and values
feedback, even if it’s
uncomfortable
49% 46% 3% 2% 0%

24. SO WHAT NOW?
Chair & Trustees Consultants
 Find your critical friend / trusted
adviser
 Introduce the framework
 Find a ‘safe space’
 Find the right person
 Intelligently introduce the framework
 Seek permission

25. Stream sponsored by: Media partner: