Peter Cox: "It's about respecting the past and not being frozen by it"
Peter Cox shares why directors shouldn't forget history, a need for new voices on boards, and the challenges of long term strategy.
A reluctant participant is how Kiriwaitingi Rei-Russell (Te Arawa, Ngati Awa, Ngati Toa) describes being shoulder tapped 15 years ago to sit on the board of a Māori trust, as it was going through a transition.
“We had a very aging board who were all male – our kaumatua – who saw there was a need for change; to bring in more diversity and fresh thinking. . . and they had decided that was me,” she says.
Initially, the decision to join the trust wasn’t attractive for Rotorua-born-and-raised Rei-Russell, who had small children at the time and was establishing herself in her career. Seeing the greater benefits, she has never looked back and is excited to be part of a growing movement of younger voices in the governance space.
“There's a great need for many of our trusts and incorporations to have younger people on them, and we're definitely seeing a huge shift.”
Rei-Russell was involved in overseeing an agreement between the trust and Mighty River Power involving geothermal development on their land, just a year after she joined the board.
“While we engaged solicitors to do a lot of the work and outline the risks, the [board members] really saw the need to have my legal expertise to make more informed decisions, there's nothing quite like having somebody on the board with those skills,” she says.
The trust has approximately 1,200 hectares of corpus land which Rei-Russell describes as an area subdivided for an industrial hub including geothermal production, a dairy farm, kiwifruit and an industrial subdivision. Charged with overlooking contracts, she ensures the board understands the implications and potential risks of their decisions, and that the outcomes have benefits for current shareholders and future generations.
Rei-Russell sits on the boards of Scion (Forest Research Institute), Putauaki Trust, Māori Investments Limited and Te Kiwai a Maui. Her previous board roles include time with the Māori Kiwifruit Growers Association, Zespri Sustainability Advisory Board, Ngāti Awa Group Holdings Ltd, Waiu Dairy LP and was the first woman appointed to the Bay of Plenty Rugby Union. In 2016, she was a Future Director on the board of Auckland International Airport.
With her deep knowledge of the kiwifruit industry – a dynamic sector – Rei-Russell has gleaned invaluable insights that have helped her trust to prosper as producers in this space.
“What that experience taught me was that kiwifruit is a really high-value commodity with a return that’s really hard to match – you could just have five hectares and be incredibly profitable,” she says.
But Māori also bring a unique lens to the sector, an asset in the international market according to Rei-Russell, who says the approach is underpinned by innovative thinking and sustainability, including what it means to be good kaitiaki (guardians/protectors). This is something Rei feels mainstream New Zealand would benefit from.
“Especially the way we look at our resources, the whenua, water, soil health, we are able to really lead in that space,” she says.
“It's actually measuring what we’re doing that's impacting the entire environment and gives us a better overall view of sustainability – not just how much carbon we have emitted – so I think that’s a real game changer. . . there is definitely the willingness from industry to support Māori aspirations around sustainability and incorporate our values and worldview into the whole conversation.”
A holistic view paired with innovation is now helping to build momentum for the Māori economy. According to data in the BERL report on Te Ohanga Māori, The Māori Economy, it has grown significantly from 17 billion in 2018 to 32 billion in 2023.
Rei-Russell, who has been watching this growth unfold, says Māori have traditionally been risk-averse but today, there is greater support to grow the Māori economy along with a change in risk appetite from Māori.
“In the past, it was about protecting what taonga we had remaining in terms of our land and resources. But with those being secure, we've been able to build our portfolios and leverage other investments to grow,” she says.
Part of the success is a slow-building trajectory and a holistic approach to asset management, with a foundation built on ‘collective good’; a strong focus on whanau and whakapapa where the benefits are shared.
Changing demographics and a young population is another factor driving the momentum.
With 50 per cent of the Māori population aged 27 and under, Rei says this “mass of untapped potential” with diverse skills is being called upon to join iwi trusts and incorporations and is integral to succession planning, which will impact the vision for board composition.
“We’ll probably move away from the traditional lawyers and accountants to having younger ones who have backgrounds in trading and sustainability,” says Rei-Russell who is also a course facilitator for the Institute of Directors (IoD) Governance Essentials course, and Kotahitanga - Principles of Māori Governance course, which she delivers alongside Dr Jim Mather.
She has been pleasantly surprised by the demand for the course, which is also delivered on a bespoke basis (in-house) to both iwi boards and trusts. She says knowledge building helps to support succession planning including teaching the fundamentals of good governance practice which will feed into a pipeline of new talent.
Many participants from the course won’t necessarily go on to join their iwi trusts or incorporations, but sit on other boards.
She sees the value of passing on knowledge to Māori and Pakeha leaders whether they be emerging or established, because te ao Māori governance will enrich the bigger picture for New Zealand.
“Oh, I absolutely believe that, and what I’m seeing is a greater willingness from non-Māori, or people from all parts of our communities, who want to interact more effectively with Māori to get a better understanding of our values and the way that we do things,” she says.
Getting an insight into that cultural knowledge is critical to building business partnerships with Māori and she says attendees gain deep insights into the nuances that will enable trust and help to grow strong relationships.
“In the Māori economy there are many different layers–you can have a trust, an incorporation, PSGEs (post settlement governance entities) – they are all very different, so it's about understanding how each of them operates and becoming better informed.”