Beerenberg’s jam-packed future with governance

GOOD external governance has helped Beerenberg keep itself out of a pickle over seven generations, says Anthony Paech, managing director of the iconic Adelaide Hills food producer.

AICD Fellow Anthony Paech at the newly expanded Beerenberg premises. Pic: Tricia Watkinson.

GOOD external governance has helped Beerenberg keep itself out of a pickle over seven generations, says Anthony Paech, managing director of the iconic Adelaide Hills food producer.

Being family-run, the business has active participation from different members of the family, with a strong focus on systems and processes.

Anthony’s mother Carol is financial controller, his sister Sally is marketing manager and brother Robert is the farm manager.

Mr Paech told an AICD forum recently that the company had separate management committee meetings and advisory board meetings.

“We’ve got very good reporting systems; we know exactly how each department is going and if there’s a problem, we really focus on it,” the AICD graduate said.

“At a board level, we see the whole business and understand where the money’s being made and where the growth opportunities are.

“Strategy is very important to us because we’re playing against a lot of big competitors. We need to be very clear about what we stand for.

“If you’ve got good corporate governance and good structures, you are future-proofing your business,” he says. “Having a board with non-family members helps you get alignment on strategy and the risk appetite, and devise ways to move forward.”

Mr Paech said that the group had a five-year road map for growth.

“It’s quite a detailed process because everyone’s involved initially, just so there’s alignment as an organisation,” he said. “As we narrow it down, I’ll take it back to the family, they’ll endorse it, and suggest ideas. Then we do a strategy day with all the management staff and get their alignment, and then we’ll get it endorsed by the board.”

Mr Paech said having an independent chair was crucial for dealing with potential conflicts in a family business.

“Everyone’s got a different appetite for risk, for example, so it’s good to have an independent chair who draws that out and ensures everyone gets heard,” he said. “Without an independent chair, things can be dominated by strong personalities, you don’t have alignment, and then there are big problems.”

Mr Paech completed the AICD Company Directors Course in 2011.

“I hadn’t realised the difference between corporate governance and management. It’s important for aspiring managers to do the course, because it teaches you how to grow the business. It sparked my interest in corporate governance, which has helped us to scale up and have a plan for succession,” he said.

“It’s important for family businesses to at least have an advisory board and understand the principles of corporate governance.”

Today, Beerenberg makes more than 75 products that retail in Coles, Woolworths and independent supermarkets, and exports to 26 countries.

The family recently celebrated the opening of its new manufacturing facility and home in Hahndorf, securing the future of the business and its 75 staff for the next four decades.

Mr Paech was recently appointed a Fellow of the AICD — one of an elite group of influential leaders to the SA business and director community.

LEARN ABOUT CYBER LAWS

NEW and existing directors can understand more about governance issues around cyber in an interactive session.

AICD will conduct a short course on cyber laws and directors’ obligations, in response to growing demand following its May course.

The Cyber for Directors Short Course will be held on August 7, for directors, chief executives, managing directors and other decision-makers reporting to their board on cyber.

The course is designed to build on existing governance knowledge and explores in detail the board’s role in the cyber space.

Under the Notifiable Data Breaches (NDB) scheme, which came into play on February 22, organisations must notify the Australian Information Commissioner and affected individuals of a data breach.

Organisations also have to notify the Office of the Australian Information Commissioner, which can seek civil penalties up to $340,000 for individuals and $1.7 million for companies if a breach occurs.

The NDB scheme applies to Australian government agencies, businesses and not-for-profits with annual turnover of $3 million or more, credit reporting bodies and health service providers, among others.

AICD facilitator Jason Wilk said directors must be aware of their obligations. Cyber Course participant and Data Action Chief Executive Karl Grant said he gained some useful insights and practical measures.

For details visit aicd.companydirectors.com.au/shortcourses

DIARY DATES

MONDAY, JULY 2

■ AICD information evening for non-members

Considering becoming a member of the AICD or participating in one of its courses? Find out more at this free networking event.

THURSDAY, AUGUST 2

■ Meet the Board

networking event

Is your board recruiting? Contact AICD on 8236 2800 or

[e-mail] to participate in this event. Boards do not need to be AICD members, however criteria does apply.

TUESDAY, AUGUST 7

■ Cyber for Directors

One-day session providing oversight of directors’ duties in the cyber landscape — governance, risk, strategy and innovation.

FRIDAY, SEPTEMBER 7

■ Reporting to the Board

New to reporting to the board? Half-day course, providing executives/managers guidance on the structure and characteristics of

a good board report and how

reports can be useful outside

the boardroom.

■ Company Directors Course

Five days can make all the difference — AICD’s flagship course for those wishing to further their

directorship skills and governance knowledge.

SEPTEMBER 19-25 — Five days over two weeks.