Top of mind for all directors, and probably most governance professionals, is negotiating the natural tensions between performance and conformance. Performance is often carefully measured by way of agreed targets or goals (and specifically linked to remuneration and bonuses). Conformance is the requirements of compliance with the laws and regulations under the local jurisdiction (in Australia this can be both federal and state/territory laws, as well as industry-specific compliance) and the corporate internal policies and procedures.
My research, as briefly described below, demonstrates that during the financial year 2018–2019, the six critical or major concerns of corporate officers can be expressed within the acronym SEMTEX.1 Remembering #SEMTEX could help directors avoid disasters that blow up and cause corporate and personal damage. The acronym SEMTEX stands for the following six areas of critical concern for all executives and directors:
S = strategy
E = evaluate of risks
M = multi-generational (diversity)
T = technology
E = environment (CSR)
X = toXic culture