DEL SISTEMA DE GESTIÓN EN CONTROL Y SEGURIDAD

LINCOLN UNIVERSITY

Department of Agricultural Management and Property

‘Dairy Farm Governance: The Perspective of Industry Leaders within the Dairy

Sector’

Consent Form for Participants

I have read the Outline of Research Project form for this study and have had details of the

study explained to me. My questions about the study have been answered to my satisfaction,

and I understand that I may ask further questions at any time.

I also understand that I am free to withdraw from the study at any time, or to decline to

answer any particular questions in the study. I agree to provide information to the researchers

under the conditions set out on the Information Sheet.

I agree to participate in this study under the conditions set out in the Outline of

Research Project form.

Signed: __________________________________

Name: ___________________________________

Date: ____________________________________

Researcher’s name and contact information:

Alice Sterritt

91 State Highway 30, R.D.1 ATIAMURI.

Ph. (027) 3238280

Email: [email protected]

Supervisors Name and Contact Details:

Dr Kevin Old

Ph. (03) 3253810 extn 7810

Email: [email protected]

Dr Marvin Pangborn

Ph. (03) 3218363

Email: [email protected]

D.

Interview Guide

Interview Guide

Designed for the Industry Leaders within the Field of Dairy Farm Governance

1) How did you enter the dairy industry?

Prompt to get full story… (Beginning, middle, end)

Are all interests in New Zealand?

What are the farms locations e.g. km apart and location? What is the business structure of your farms?

2) Can you please tell me about your off farm governance roles?

Prompt to get full story up (Beginning, middle, end) Why did you get into this?

3) How have you established governance on your farm?

Prompt Questions:

How did you do this? Why did you do this?

If you could turn back the clock would you do it different?

Do you think the creation of a board has added value? How? Why?

In your opinion what are the 4 or 5 ‘must do’s’ when setting up a dairy farming board?

4) How do the off farm governance roles differ to the governance you currently use for your dairy farm interests?

Prompt Questions:

In your opinion what are the 4 or 5 major differences between the two roles? What knowledge have you taken from your off farm roles and utilised on your dairy farming board?

How much time is involved in a dairy farming board? Do family dynamics complicate dairy farming boards?

Does the SME size of most dairy farms reduce the need for dairy farming boards?

5) In your opinion, how should a dairy farming board be structured?

Prompt Questions:

Are Directors selected on personal attributes?

Do you think female directors add value? (how many are on your board) Do you use Independent directors? Why/why-not?

Should majority shareholder automatically get on the board?

What do you think is the ideal number of people on a dairy farming board? Is the CEO and the chairman normally the same person?

Who should chair the board? Is a revolving chair better? Who elects directors?

In your experience do certain personality types add or detract value?

Do you select directors on their individual prestige to add to the reputation of the board?

6) Do you hold formal board meetings for you dairy farming enterprise?

Prompt Questions:

When and where are these held? E.g. Farm ute on tour round farms? How often are meetings held?

What are the 4 or 5 biggest topics of discussion?

7) In your experience, how do directors develop strategy and vision for the business?

Prompt Questions:

How is this process monitored?

How often do you review this strategy?

How do you maintain control of this strategy with managers having day to day control of the farm?

What reporting do expect from managers?

How do you monitor management? Closely/loosely? Do advisory boards help this process of setting strategy? Did the GFC affect your governance model?

8) Does the dairy farming board set the constitution of the enterprise?

Prompt Questions:

Do the set the exit strategy?

Do they set the entry requirements?

How do they handle the entry/ exit of capital? Can a shareholder leave as they please?

9) What is the most important role (as you see it) of a board of directors on a dairy farm?

Prompt Questions:

Why did you suggest those roles over others?

10)What do you think are the biggest challenges dairy farms boards will face in the future? 11)Where would you suggest that dairy farming board should sit along this continuum to be

most effective?

The Passive Board. This is the traditional model. The boards activity and participation is minimal and at the CEO’s discretion. The board has limited accountability. Its main job is ratifying management decisions.

The Certifying Management Board. This model emphasises the credibility to shareholders and the importance of outside directors. The board certifies that the business is managed properly and that the CEO meets the board’s requirements. It also oversees an orderly succession process.

The Engaged Board. In this model, the board serves as the CEO’s partner. It provides insight, advice and support on key decisions. It recognises its responsibility for overseeing the CEO and company performance. The board conducts substantive discussions of key issues and actively defines its boundaries.

The Intervening Board. This model is common in a crisis. The board becomes deeply involved in making key decisions about the company and holds frequent intense meetings.

The Operating Board. This is the deepest level of on-going board involvement. The board makes the key decisions that management then implement. This model is common in early stage start-ups where top executives may have specialised expertise but lack broad management experience

12)Is there anything else you would like to add to this interview on dairy farming governance?