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Generation Y in the Boardroom - Governance 3.0 | Dr Karl George MBE | TEDxBirminghamCityUniversity – Transcript
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- Dr Karl George MBE discusses corporate governance, defining it as the system by which companies are directed and controlled.
- The speaker outlines three generations of governance, starting with dominance, moving to complex blind spots, and culminating in disruption.
- Professor Klaus Schwab wrote about the fourth Industrial Revolution where work and life are disrupted by technology like artificial intelligence.
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afternoon everyone you can say afternoon car I'm also known as the governor heard my name is car judge but the governor not in a Vinnie Jones director of those things that we see not in a ganster kinda way but in all things government's kinda way I get tingly about corporate governance and three things I want to do
today number one is get you to me about corporate governance number two get you to understand some of the principles of corporate governance and then number three to simplify some of those definitions some of those things that you think are understandable to get you to be the most effective person in the boardroom so we can change the world one board member at a time in fact you're all looking so good today
I just want to comment on that and most of you have made a really good effort to make sure you look good I'm only joking but what I want you to do say you look good I'm feeling good and I'm gonna get tingly about governance today can you do that right now because the more you give me the more I can give you so just say you look good I'm feeling good and I'm gonna get to you about governance today
excellent you see what I want to do is find out how we prevent how we mitigate how we detect corporate failure and even learn from all of that I want to make sure that in the boardroom we moved away from where we was in the past with this VUCA Luca 1980s Warren Bennis said this that we are in an environment of
vulnerability uncertainty complexity and ambiguity but I think that's dated I think we need to move more towards veikkaus so at the end if I forget remind me to tell you what I mean by ves the challenge we have however is that in the boardroom the people that are the leaders in business as Bob Garrett says in his book the fish rots from the head
are what we call baby boomers that's the generation that remembers when the black-and-white TV came out that's the generation that we see that has business in the terms of they're the ones in the boardroom in the next ten years there's the ones going to be 60 or 70 years old but my generation Generation X not my father's generation and you know those
father's way they've got their mobile phone well that generation actually heated it like that in fact my boys say that to me sometimes the way I'm using the phone but I remember when the first mobile phone came out I had one and I can't really call it mobile if we think about mobile phones up like today the technology has moved on so much and you see I remember back in my day when the music was Bob Marley and one love
I remember going out in the morning putting on my steaks and coming back late at night not like the generation now who put something on their head and they're virtually interacting with people and they stuck in a room somewhere you see the generations have changed our thinking has changed the way we work has changed because he but Moses there have you to go out and leave my house
and go and choose the video hope it was there do you remember those days some of you and if it wasn't there I'd have to have something else go back home rewind this if there that we wound it before watch it rewinding then take it back if I remember so just get find but the Millennials they don't have that you see that can stream from a number of sources and get their information on demand we
actually call them the microwave generation simon Sinek says the entitled generation because every generation tries to do more for the next generation we don't want you to go through what we went through so they sometimes want things on demand and the post millennials in where we have facebook they now have snapchat and you can probably help me instagram and twitter
and all these things some of them haven't even heard of because the generations have changed what's this got to do with the boardroom what's this got to do with governance you should i predict that we're going to see a catastrophe a disaster over the next decade like we've seen in the past we remember Bryn fell we remember 272
people that died and others injured you see governance isn't just about things we can see in the private sector we had a run on the banks because of the banking crisis and David Walker did a review which gave us a new governance card but in the public sector not only have we seen death in the fires but we seen Victoria Klum being
unfortunately was killed by her parents or carers sorry and baby pea killed by stepparents bit of Dhulia but what does government's got to do with all of that in the charitable sector I saw kids company get millions of pounds worth of funding from the government konnichi liquidation
so the Frances inquiring into health avoidable deaths with the elderly the layman inquiry which gives us the Children's Act and every child matters all of these inquiries got some similar themes number one repeated warnings
ignored gross negligence incompetence no national guidelines none of us collaborating across agencies and these are what the employers are saying about what we should be doing so this government's thing that I keep talking about you see government's as
her agent can be said in the report that a royalty in 1992 is the system by which companies are directed and controlled so systems means that it isn't one individual or a department it's a whole structure within an organization it's about directing the travel and it's about being strategic and not operational and I want to tell you very
quickly about three generations of governance the first generation of call Domino's and you'll see they Maxwell Robert Maxwell very successful entrepreneur politician businessman even won the Military Cross for bravery but in his business what he said goals and if he didn't agree with him in you were honest and that's good sometimes to get businesses to work effectively when they're not complicated as generation 1
overseas but when he died and we found that they taken the pension funds of one of the subsidiaries to prop up his empire people were devastating generation 2 governance I remember this by thinking about blind spots you know when you drive in your car he's got to look in their view review you've got to look at your
fingers but if you don't turn and look you're gonna miss something anyone miss something the world's seventh biggest company at the time one minute $98 per share six months later one dollar per share a hundred billion
employees come in blind spots one of them is cultural myopia you believe you are on hype about your company another only six arrogance this is the way we do it in our sector a third one is the good old days you know if it ain't broke why fix it because that's how it was working all this time and you have complacency
in generation three governance I call this disruption I call it disruption but there's multiple disrupting factors in fact I call them multiple black swans Nicholas Taleb in his book talks about black swans and Black Swan events are those things that are unpredictable they're outliers and if you had unpredictable avail to impact
your business what could you do about it but then thinking of the perfect storm of unpredictable events all happen at the same time that's why generation 3 governance is thomascook as you know one of the world's oldest travel companies list a hundred thousand people stranded when it went down but think of the perfect storm people have staycations now because of the climate
we don't go away we can make sure that we have our holidays here we have the people who on social media find out that somebody was ill they died and it was at a resort and then all of a sudden nobody's traveling anymore at the same time as people be able to book their holidays on their own they don't have to go through a consolidation agency they can do it all themselves on the top of
trying to raise a perfect storm of events that's where third generation of governments come from I talked about my day I talked about my generation there's a song who says what's love got to do with it anybody know who said that that was from my dad just tell me maybe you see what's love got to do is it nothing to do with not all but what for the fourth Industrial Revolution but to do with
everything that I've been speaking about professor Klaus Schwab the founder and now chair of the World Economic Forum wrote the book called the fourth Industrial Revolution and what's that one about he says that the way we work and live is being disrupted by IOT the Internet of Things artificial intelligence by all of that technology everything's being transformed that's
the current and future environment that we're going to see and you can see a picture there of a building that I visiting the device very recently that building was built with 3d printing in fact one of my colleagues is here today from Dubai in terms of how we deliver it and what I'm trying to say to you is the by is going to try and be the world's
economic center for the fourth Industrial Revolution and how we're working what has this got to do with what we've got to do we're changing the way the world works remember I told you the beginning to remind me of something it was about VHS you see in this new world we've got v4 a virtual world anybody who you remember in the Kingsmen the
Holograms when the people were having their board meeting I can see a future where that's the way we're going to me remember I talked about the young people who were not out on their roller skates but they're in their room with a headphone on in this augmented that's the world that we're going to see the eye is for info and biotech info and biotech combining together not only can
we 3d print buildings and I think that's fantastic but we can 3d print organs while you say you can say well and the C's convergence I'm seeing all of that technology converging at such a rapid pace Moore's law says this law says that the technologies doubling in space every year at the same time as the cost
reducing but convergence says this it's almost like Moore's Law on steroids that's how fast things are going because the speed is there the data is there the technology's there and everything is happening together in that virtual world in Saudi Arabia they've got a computer robot which is the world's first citizen and named Sophia well you say or I'll