Exclusive chat with AICD CEO John Brogden

John Brogden is a familiar name in the NFP world. He is the CEO of The Australian Institute of Company Directors, Chair of Lifeline and sits on the board of many other organisations.

Brogden joined his first board as a passionate and driven 19 year-old and has been involved in various leadership roles ever since.

Third Sector interviewed Brogden to find out more about leadership, ‘A Blueprint for Growth’ and what drives successful governance.

TS: You have been involved in leadership roles since high school. You were school vice-captain then president of the Young Liberals which lead to a career in different CEO positions. What do you think is the secret behind successful leadership?

JB: Throughout my career I have held several leadership positions each with their own challenges. My failures are well publicised, but how I coped with these failures have been my greatest lessons.

I am a great fan of the unscripted speech by Richard Nixon as he resigned in shame and controversy in 1974. It explains my journey.

“The greatness comes not when things go always good for you. The greatness comes when you’re really tested. When you take some knocks, some disappointments. When sadness comes. Because only if you’ve been in the deepest valley can you know how magnificent it is to be on the highest mountain.”

TS: What is your personal definition for ‘governance’? What is ‘successful governance’?

JB: Good governance is a critical element in good performance.  Good governance is led by the board, but must be carried through every layer of the organisation to achieve best practice and maximum benefit. Governance is not a grudge purchase focused purely on compliance – rather seeks to achieve the best outcomes for the organisation.

TS: What are the biggest mistakes industry leaders make?

JB: Within the not-for-profit sector directors often come to the boardroom with significant passion and drive. This passion for purpose often clouds judgement and discipline is often left at the door.  Good governance is an important aspect of any organisation to ensure its success and longevity.

TS: AICD released a paper earlier in the year called ‘A Blueprint for Growth’. Why is a Blueprint of this nature important?

JB: It is important for the AICD to engage with government to ensure the issues of our members are communicated to our nation’s decision makers. Our mission is for the pursuit of excellence in governance at all levels and our goal is to make a positive impact on all aspects of Australian society and the economy. Our Blueprint for Growth proposes an agenda for national reform and growth, which governments for too long have failed to propose, enact and achieve. We have previously pursued a narrow policy agenda, but now recognise that we have an important role in broader debate about issues related to the governance of the nation.

TS: The Blueprint called for a five-year funding cycle for the NFP sector and national harmonisation of regulatory settings. Could you explain this further? Why do you think this is an important initiative?

JB: Not-for-profits constantly struggle with short-termism in the form of unpredictable government funding. No listed company would be expected to operate efficiently if it couldn’t predict its income from on year to the next, so it’s unfair that NFPs which provide critical services to the community are expected to do so. It is confounding that a sector that employs over one million Australians is subjected to such a difficult operating environment. It’s not only important services that are constantly under threat from unstable funding, NFP directors incur considerable risks when funding arrangements are changed, withdrawn or delayed and organisations are exposed to the risk of insolvent trading.

TS: What do you think the future holds for Australian NFPs?

JB: NFPs face increasingly complex challenges and governance must continue to improve in response. The Australian Charities and Not-For-Profit Commission (ACNC) sets minimum standards of governance for charities – however we ask the question whether just as in ASX listed companies, not-for-profits should and want to achieve a higher level of governance.  As part of this, we also think it is necessary for government to formally recognise the need for investment in building governance capability.  This represents an excellent opportunity for collaboration between the sector, government and the AICD.

John Brogden will be speaking at Third Sector’s conference and expo taking place on August 18 & 19.