In the previous article we looked at the wide range of activities by which the performance of the company secretary can be assessed.In this article we look at efficiency: how productively the activities are performed, such that the least amount of valuable time and resources are used or consumed in performing the role at the expected level – the delivery of a high quality of service in a timely manner.We know, and frequently hear, that company secretaries are busy, but being busy is not a measure of performance; ultimately, it is the outcomes that matter.If we look at what many company secretaries are expected to do and the available time during the year, it is possible to gain indication of how efficient your company secretary is performing.Importantly, it is not being suggested that timesheets be introduced; rather, look at what is being asked of the company secretary and gauge (by reference to some valid benchmarks) how that individual is performing and responding to the needs of the prevailing circumstances and looking ahead.

For a small to medium-size organisation* in a mature and stable phase of its existence, with a solid and experienced management team, it is quite possible for a qualified and experienced company secretary (CoSec) to perform their role, occasionally with a little assistance, within standard full-time working hours of 38 hours per week, albeit with the usual peaks and troughs throughout the year.However, if the business has new management, is (for example) growing, facing constant headwinds or challenges, the subject of a takeover or regulatory investigation, the workload for the CoSec can dramatically increase and almost be overwhelming, requiring the individual to ‘dig deep’ for extended periods of time just to survive (doing what needs to be done to an acceptable standard).

So, what does this all mean for evaluating performance.Two things:

First, CoSecs need to prepare for regular peaks, any reasonably expected increases in workload in the near to medium term (often associated with significant transactions) and any unexpected events.The consequences for failure to prepare could include costly errors and burnout of staff (which have significant health consequences, a matter of concern for any board).CoSecs need to plan ahead properly and not be reactive or hope that a few more hours of extra work will help fix the problem – that is not a feasible long-term solution.Whilst, by definition, it is not possible to prepare for unexpected events (which are common in business), it is possible to ensure there is some capacity in reserve to deal with unexpected events.‘Expect the unexpected’ is a useful piece of advice and note that a failure to plan can result in failure itself.

Second, and following on from the previous point, CoSecs sometimes need to have the courage and conviction to ask for help as soon as it becomes apparent that help is required (e.g., where signs may include mistakes are being made, deadlines are missed, and work is not being done).Help could come in various forms, including requesting additional headcount (if the increased workload is likely to be long-lasting or ongoing), engaging a fixed-term contractor to assist with the general work effort or discrete pieces of work or major projects (if the additional workload is likely to be short-lived), engaging a consultant to assist with examining and reshaping existing work practices and workflows (and suggesting better ways of working), and/or scoping out and purchasing governance-related technology-based solutions (third party developed software / applications), which expedites processing and improves accuracy (and significantly improves productivity in the process).Alternatively, consideration may need to be given to deprioritising or possibly even dropping some non-essential activities altogether.Remember that requests for help (however uncomfortable) may be necessary not only for your own health and wellbeing, but for the health and wellbeing of those around you – your valuable team members.

CoSecs are generally highly dedicated and committed individuals who are prepared to put the interests of the organisation above their own to get things done.Whilst admirable in some ways, this can be unhelpful in the longer term.

In situations where the business is expanding or under stress it is important to recognise that technology becomes even more important and critical, otherwise additional (unpaid) hours will be required, which eventually becomes unsustainable for the CoSec and their team.Here, it is worth noting that the adoption and use of technology-based solutions (including for board and committee meeting management, entity management and corporate administration) can bring significant advantages and efficiencies, somewhere in the vicinity of a 30% plus improvement (based on current market-based estimates of average annual workload for practising CoSecs).If the CoSec is working extraordinarily long hours for long periods of time that should be a ‘red flag’.Boards take note!

Working smarter and not harder is a well-worn mantra, and one which even more aptly applies to CoSecs in the modern era.

It is sometimes said that “you will hardly be aware of the CoSec, if they are doing their job well”, which may be true if things are simply rolling along in a “business-as-usual” fashion, but things can quickly change when business activity and corporate regulation increases, which seems to happen far more frequently these days, with the increased pace at which business is done and increases in the number of complex national and international transactions being undertaken, and increased regulation (including at state and federal levels), and especially where there are calls for people to do more with less due to ever-increasing cost pressures.

A good CoSec will get the important things done in an efficient, effective and sustainable way.

* With annual turnover of less than AUD $50 million.

Need Help?

Governance in Action Pty Ltd can assist with designing and (if requested) conducting balanced scorecard-based performance and/or efficiency reviews of company secretaries and company secretarial functions (referencing relevant benchmarks), providing experienced short-term (e.g., 0-12 month) assistance, assisting with discrete pieces of work and projects, reviewing existing work practices and workflows, and suggesting how technology can be integrated into the CoSec / governance function to help drive performance and success … and improve everyone’s work / life balance!