Governance Lessons From the Essendon Football Club Experience

Monday, November 18, 2013

As a pause occurs in the media frenzy surrounding enquiries into the activities of the Essendon Football Club (EFC), we have an opportunity to reflect on what lessons can be learned.

By way of refresher, during 2013 the medical practices of the EFC were investigated in light of allegations some were not in the spirit of the game (amongst other things). Penalties were imposed, including the EFC not being permitted to play in the 2013 finals series of the AFL, and the coach being suspended for 12 months.

The EFC commissioned an internal review into the governance practices of the club led, led by Dr Ziggy Switkowski, who reported his findings on 6th May 2013. The full report of Dr Switkowski can be found here:

http://www.essendonfc.com.au/news/2013-05-06/dr-ziggy-switskowski-report

It is in these findings that we glean some valuable lessons for all organisations:

  • It is the CEO who is ultimately accountable for the happenings of the organisation. All aspects of the organisation must ultimately work through the CEO.(Recommendation 5)
  • Whenever an organisation engages in change management, it is even more important to ensure accountabilities, reporting lines, communications channels etc. are clear and functional at all times. (Recommendation 7)
  • Boards must especially ensure any bad news affecting the organisation. Is reaching them quickly. As the report says “Boards should be asking [management] the question ‘what’s keeping you up at night?’ and follow up and monitor action on concerns.” (Recommendation 8)

The report contains a number of other relevant and timely lessons from the report for the EFC board, leaders, and management, many of which are just as valuable for other organisations to consider in light of their own context.

I you would like more information as to how the Avondale Business School can help your organisation review its governance and leadership, simply contact Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168