Transcript 250K to €2.5m Cricket Ireland – Returns on Good Governance

€250k to €2.5m:
Returns on Good Governance
September 2011
“Good Governance The Road to
Sporting Success”
Sport and
Recreation Alliance
The Batting Order
 Background
 Process of change
 New structure
 Conclusions
Background
Good Governance
“The system by which companies
are directed and controlled.
“Openness and accountability are
the watchwords, and ethical
standards are the basis on which
lasting governance systems are
built.”
- Sir Adrian Cadbury
Background
Governance/commercial model
2005
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Irish Cricket Union – unincorporated entity
Executive Committee – 18 people – fully representative
3 on payroll – including one P/T
no contracted athletes/players
Turnover - €260,000
Commercial revenue - €104,000
Website traffic – 930,000 (for the year)
2011
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Cricket Ireland – incorporated business
Board – 11 Directors – representative and independent
21 on payroll – 11 F/T; 5 P/T; 5 consultants
13 contracted athletes/players
Turnover (projected) - €2.9 million
Commercial revenue - €1,370,000
Website traffic – 9,220,000 (to end August)
Background
 2003-6 – first CEO
 Funding model – dominated
by public hand-outs
 Limited playing success
 CEO departs
 ICU soul-searching – CEO or not?
Background
 CWC 2007 – on the map
 How to capitalise on success and move
forward?
 Strategic consultancy – paid for by Sports
Council
 Best practice principles
 How can we be better?
Process of Change
 Outline proposals – radical
 Develop plans in:
 Governance
 Business/Administration
 High Performance
Process of Change
Starting point
 Identify stakeholders
 Internal and external consultation
 Key questions:
What is current situation?
Is change necessary?
What is ‘best practice’?
How do we tailor this to Irish Cricket?
Process of change
Killer phrase – consultant’s paper:
“One of the key issues for a governing body is having the authority and
credibility to be able to lead and govern the sport in an increasingly
complex environment. The Irish and international sporting landscape
has changed considerably in the last 5-10 years. A governing body has
many regulatory, commercial, fiduciary, legal and policy obligations
compared to other, simpler eras. It is important that the ICU governance
is sufficiently robust to deal with these complexities and can maximise
the opportunities available to the sport, while maintaining and
strengthening existing structures and relationships.”
Process of change
Key arguments (the ‘what’):
 Best practice
 Limit of financial liability
 Guarantees expertise on Board
 Support from key funding partners
 Withstand external scrutiny
 Timing – golden opportunity to change
Process of change
Selling-in process (the ‘how’)
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Avoid alienating existing expertise – volunteer dropoff
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Current group – instrumental in getting game to
current state
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Current group – critical in laying foundations for
future and leaving legacy
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Consultant to deliver – independent expert
Process of change
Agents of change (the ‘who’)
 New CEO – new blood; no axe to grind
 Key volunteers – Chairman/Finance/Hon Sec
 Independent, experienced consultant
 External funding for process – Govt/ICC imprimatur
 Possible new sponsor?
Process of change
Timelines (the ‘when’)
• April 2007 – idea genesis/internal support
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May – ISC agrees to support process/agency engagement
June/July – stakeholder consultation
August – drafting of papers
September – final drafts to ICU management
October – debate/decision by Executive Committee
October/November – drafting of Memo & Articles
November/December – Board composition debate
January 2008 – approval of M&A; Nominations Committee
February – last AGM of ICU/EGM of ICU Ltd
March 2008 – first meeting of new company Board
New structure
The Board
 11 people
 Chair, plus 6 from cricket constituency and 4 ‘independents’ – local
knowledge/external expertise
 Majority – experience of leading/managing cricket
 Chair – at least 3 years in last 10 lead/manage cricket
 ‘Cricket’ nominees – one mandatory; plus one mandatory or desirable
 Composition skills-based; also reflects geographical diversity of game
 Acting in best interests of the company
New structure
Desired skills-experience
Mandatory Requirements
• Experience of leading/managing cricket in Ireland (at Board/Executive level in the ICU or a Provincial
Union)
• Experience of Irish international cricket (as player, coach, manager or selector)
• Experience of managing a growing business
• Board level accountancy/finance experience
• Access to a wide range of business/sporting/political contacts
• Experience of raising finance for sporting organisations
Desirable Requirements
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Media experience
Legal experience – company and/or sporting
Experience of representative women’s cricket (as player, coach, manager or selector)
Experience of leading and developing volunteer networks
Experience of sports education
Experience of marketing major sporting events
Experience of internal audit/risk management
New structure
Board-Management engagement
• CEO runs the business – Board to provide advice, guidance and support
• Board makes strategic decisions based on management recommendations
• Two-way communication – constituent views to Board and vice-versa
• Regular communication between CEO and Chairman
• Regular communication between CEO/Senior Management and sub-committee
Chairs (Cricket and Finance)
• Independent Directors – advice in legal, commerce, finance, discipline, HR
New structure
Legacy of change
 Inherently good:
 smaller numbers at Board = focused discussions
 external expertise valuable for business/legal/financial advice
 management empowered
 creates environment for on-field performance
 Looks good:
 perception is reality
 stakeholder confidence in model – players; committees; media; staff etc
 Public funder confidence
 less compliance
 more likely to receive additional funding
 Commercial opportunities
 RSA perception
New structure
The virtuous circle:
 Reform governance, therefore...
 Everyone points in the same direction, therefore...
 Board puts team at the centre of policy, therefore...
 Resource flows to team, therefore...
 Team becomes successful, therefore...
 Success attracts profile, therefore...
 Profile attracts revenue, therefore..
 More resources to team, therefore...
 More success...
Conclusion
 Governance change isn’t just worth it, it’s necessary
 Not rocket science, but takes time
 Improves organisation
 Improves perception of organisation
 Attracts public funding
 Attracts private funding
 Facilitates team performance
 Demonstrates desire to improve
Thank You
Any Questions?