The Jamaica Observer canvassed business leaders from the Jamaica Stock Exchange (JSE) Junior Market Mentorship Programme who shared their experience obtained while guiding new companies in corporate governance standards and behaviour.

All mentors questioned were optimistic in their reports and confident that adapting new standards of corporate governance have benefited companies both operationally and in financial outcomes.

The JSE mentorship programme is designed to provide start-up companies with the relevant industry knowledge, from proven industry professionals. By strategically developing their competencies, mentors directly contribute to the companies’ growth, innovation, and overall strategy, as stated by the JSE itself.

Mentors need nerves of steel to encourage confidence in the members of new boards and also to deal with directors who ignore advice until it is too late. As one stated as well, communication needs attention, as not only the board but the entire management must buy into the change in culture expected, to prevent failure.

Mentor Tanya Waldron-Gooden

Business leader and company CEO Tanya Waldron Gooden has been a JSE Junior Market mentor since 2013 and has served as guide for seven companies, namely: Main Event Entertainment Group, Express Catering Limited, Derrimon Trading Limited, Caribbean Flavours and Fragrances Limited, EduFocal Limited, Spur Tree Spices Limited, and Dolla Financial Services Limited.

Waldron-Gooden states, “The mentoring process offers guidance not only on satisfying the requirements of the JSE Rules but also provides support on corporate governance matters especially as it relates to board and committee structure and composition.

“It also provides insight and working knowledge of roles and responsibilities of the board and committee members. It was quite a privilege to work with all the companies that expressed their trust in my guidance. All had one thing in common: when they were new entrants to the JSE and all had a level of doubt that all that was expected of them by their new regulator could be achieved.”

[However], after working with them between six months to one year, I usually see the confidence and levelness appear. While still needing guidance, they develop systems, procedures and controls which immediately bear fruit. “

Waldron-Gooden stated, “My best experiences include: additional capital raises — acquisitions, private and public debt raises, additional equity offers, etc. This indeed plays a critical role in further scaling the businesses both nationally and regionally and in one instance to another continent.”

Most challenging, she shared, “Were boards and CEOs that do not seek or listen to guidance until it is too late. What this does is create a reactive rather than a proactive environment, which may lead to the suspension of trading or worse.”

Wayne Wray

Wayne Wray, career investment banker and principal of Wiltshire Consulting and Advisory Limited, has been a JSE mentor for over 10 years, offering guidance to five companies.

He states, “The mentor assists the board and management to identify gaps, weaknesses and risks within the business and its operations then oversee the implementation of appropriate action plans over time to improve performance.”

Wray said that by employing enterprise risk management, documenting policies and procedures, implementing checks and balances throughout the organisation, a mentor encourages the board and senior management to engage in fair and best practices beneficial for management staff, suppliers and customers.

Wray commented, “It has been my personal and absolute pleasure working with entrepreneurs and business persons who are passionate about their companies, willing to share their visions and goals as founders but at the same time willing to listen on how transparency, strategic alignment and risk management would auger well for growth in their businesses and sustainable shareholder wealth.

“Secondly, I have seen companies achieve growth in assets, profits, staff and customer satisfaction and shareholder value while accepting their obligations to be good corporate citizens in the building of a nation.”

For the mentor, the most challenging experiences have been helping to give birth to a change in culture. He commented, “Changes in the environment are always difficult for everyone but it challenges us to rely on our core foundations and principles (expressed in corporate governance practices) to anticipate, communicate, respond and adjust to different situations that will occur and perhaps, even a new environment in which we have to operate and succeed.”

Lissant Mitchell

Business leader and banker Lissant Mitchell has been an approved JSE mentor since the introduction of the JSE Junior Market in 2009. Currently, he is a director and mentor for Indies Pharma Jamaica Limited and Consolidated Bakeries Jamaica Limited (Purity) and a mentor for Future Energy Source Company Limited (Fesco).

Mitchell states that a very important pillar in driving growth for companies and ultimately shareholder value is that of an appropriate corporate governance framework.

He notes, “The JSE Junior Market mentoring process allows for companies that are raising capital and being listed to have access to experienced support in this area including compliance with its rules. The company mentor works with the board of directors to provide the required oversight of the governance framework.”

Mitchell shared, “Some of my best experiences are seeing the companies evolve as they embrace mentorship and the value creation that ensues.

“The companies I support fully appreciate the value of having a company mentor and are very open, flexible and responsive which makes the process easier. This collaborative approach ensures alignment of all key stakeholders around the respective company’s strategic vision.”

The business leader said he has never “really had any bad or challenging moments during my mentorship experience.”

Mentor recommendations to companies in transition

Waldron-Gooden: “Companies should seek the guidance of a professional, one that shares your vision. This will create a natural relationship which will manifest into trust. To change one’s culture, is never in an instance. It requires careful analysis of the existing culture and making adjustments incrementally.

“Improving procedures, systems and controls which guide new behaviors and patterns which will ultimately feed the culture you desire. Expectations are to be clearly communicated and management must play an active role in modeling expectations. Without buy-in the culture shift will prove to be more difficult than it could be. A strong and active board with all the right talents is an integral player in that strategic push.”

Wayne Wray recommends to companies: “Understand the culture that you currently have, determine from your key stakeholders what you want to achieve as a company then through proper corporate governance — document, communicate and consistently practice how you will perform within a changing environment.”

He also advises: “The introduction of systems/standards and best practices (in the interest of all stakeholders — shareholders, board, management, staff, suppliers, customers, public) allow the company to accomplish responsive management of the moving parts in the organizations that will ultimately impact our businesses and determine its success or failure in the long run.”

Lissant Mitchell states, “ The appropriate governance framework for a company and its shareholder value creation are inextricably linked. It enhances the level of confidence of its customers/clients and shareholders. It also supports improved accessibility to financing and other strategic opportunities such as acquisitions, mergers and buyouts, etc.

“I recommend that companies see the appropriate governance framework as an important strategic imperative and incorporate this into the strategic execution plan.”

In accordance with Junior Market Rule 503 in the Junior Market Rule Book, unless the JSE agrees otherwise, an eligible company shall, prior to initial admission, and at all times during which it is a Junior Market company, have a mentor who shall act as a compliance adviser to the board of the eligible company or the Junior Market Company. Every proposed mentor shall be approved by the JSE before his/her appointment is effective.

The JSE mentorship programme is geared to improve customer and investor confidence in the listed companies. It demonstrates the willingness of the JSE Group to invest the time and resources necessary to assist companies to operate in an efficient manner on the stock market.