Managing director Neil Paviour-Smith says the role of a board chair has never been more demanding.
“With the current economic climate marked by a sluggish domestic economy, geopolitical instability, and shifting capital markets, there’s a clear challenge for board chairs in balancing discipline and ambition,” he said.
“It is imperative to be clear about the strategic ambition, ensuring the chair doesn’t let the business retreat from long-term value creation.
“Management will be under pressure dealing with day-to-day operations and market expectations in the prevailing conditions. The chair can play a key role in helping management look to the horizon, balancing the short-term pressures and also helping consider whether there are counter-cyclical opportunities in pursuit of the longer-term goals.”
This balancing act means resisting the temptation to cut too deeply or delay investments that underpin future growth.
Meanwhile, artificial intelligence is already reshaping the workplace, automating routine tasks and freeing employees to focus on higher-value work.
Paviour-Smith believes AI is reshaping governance in profound ways.
“AI will add further to the firm’s risk assessment with challenges such as misinformation, data ethics and technological literacy, as well as broader transformation issues and competitive threats,” he said.
“On the other hand, there is a bigger risk that the opportunities presented by AI are not taken up due to an overly conservative risk posture.”
His observation is that boards tend to rush to develop AI policies, usually with a risk focus, but are less minded to push for employees to start using AI and finding new ways of operating.
“A chair might ensure there is board discussion scheduled on AI [adoption and risks] at each board meeting in the years to come as the technology continues to develop at pace.”
Neil Paviour-Smith. Photo / Dean Purcell
Building trust through leadership
Recent surveys indicate that business remains the most trusted institution in the country, while trust in the Government, NGOs and media is generally declining and falling into “distrust” territory.
The Acumen Edelman Trust Barometer 2025 reports that trust is lowest among younger people, Māori and regional communities.
Paviour-Smith says chairs play a crucial role in creating and reinforcing trust through authentic leadership and transparency.
“Practically, there are some key behaviours that help achieve this. Consistency of decision-making and communications, being personally visible with stakeholders, genuine listening and responsiveness, fronting into the difficult decisions and transparency around both achievements and lessons learned can all strengthen credibility.”
Succession planning
Another issue for board chairs is how to implement successful succession planning and develop future leaders for future challenges.
“Succession planning is sometimes organised as though it’s more of an event, as opposed to an ongoing process of leadership renewal, with an understanding of internal and external options before necessity arises,” Paviour-Smith said.
“What would the plan be for sudden change with the leadership team, including the board? Ideally, succession would be considered across the wider board and leadership group to optimise timing to the extent feasible. Actively exposing potential successors to challenge early is insightful – particularly creating cross-functional experience that builds judgment, adaptability, and a deeper understanding of the organisation.
“The board’s role is not only to plan for transition but to actively develop leadership readiness.”
The awards
The Deloitte Top 200 Awards were established in 1990 and are held annually to recognise and applaud outstanding individual and management team performances among New Zealand’s largest companies and trading organisations.
All the Deloitte Top 200 winners will be revealed at a gala event on December 4. The event will be live-streamed from 7pm on the NZ Herald website.
Last year’s winner of the Chairperson of the Year award was Jan Dawson.
2025 Chairperson of the Year finalists – Sponsored by Forsyth Barr
James Miller
James Miller.
Pip Greenwood
Pip Greenwood.
Peter McBride
Fonterra chairman Peter McBride. Photo / NZMEStay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.