Sparkling connection

1. How would you describe your relationship?

SMYTH: “Through a variety of governance roles, I’ve seen how critical the CEO/chair relationship can be. Mutual trust and respect are the most essential elements – they oil the wheels of the many and varied interactions a chair and CEO need to have. Jolie and I have built this relationship based on trust, which means we have no qualms tackling the tough conversations, but importantly we can also have a laugh at the end of the day. We also have a shared ethos of hard work and being prepared, which is essential when it comes to the variety of issues and decisions that come across our desks.”

HODSON: “You have to have trust in each other’s judgement, have clarity around how the two roles interact and be transparent in your expectations of each other. One of the things that stands out for me is the way Justine and the wider board support my leadership, while also being able to constructively challenge us when they need to. Striking this balance is no easy skill, but Justine consistently manages to walk this line, which ensures our leadership team can perform at its best.”

2. How do you work effectively together and navigate the challenges?

SMYTH: “This all stems from clear expectations and effective communication. If you are aligned on where you expect to land – and can have an honest conversation about what’s going on – you can work through any crisis or knotty decision. We are both frank by nature and happy to talk things through, so we generally get to the heart of the issue pretty quickly. If there are challenges, it is also important that Jolie knows I have her back.”

HODSON: “A clear strategy and agreed priorities will take you a long way. I find that when we’ve done the work to clarify what we are doing as a business, this gives us a framework for how we address and work through challenging situations and decisions. Keeping Justine and the board informed and updated in an appropriate way is essential – I operate on a ‘no surprises’ policy.”

3. How are you able to have frank conversations?

SMYTH: “Creating a safe environment where all voices, including opposing ones, can be heard around the board table is an important part of the role of a chair. There are things I do to establish this from day one working with a new board member, such as being really clear on how we operate, and ensuring contributions are actively welcomed. I am not one for director conversations outside of the boardroom. I like everyone, including the CEO, to hear what every director is thinking and feeling. But there’s also an element of building trust through working together over time.”

HODSON: “We’ve put a lot of effort into building a culture at Spark where open conversations are encouraged – that’s very important to me in the kind of business I want to lead. So I view it as part of my leadership to role-model the behaviours we want to see. When it comes to my relationship with Justine as chair, being able to be clear and direct is critical to all effective working relationships – and our relationship is no different. Justine also encourages this around the board table, so we have an open forum where we can discuss issues directly with each other.”

4. With a sector that continually evolves and innovates, what are the challenges of keeping on top of transformation?

SMYTH: “This is one of the most challenging and exciting things about being on a board of a technology business. It is vital for our board to have deep expertise in our core and growth markets and to be well- versed and connected into what we are seeing evolve in other markets. New opportunities and threats are constantly emerging, and it is incumbent on us to be bringing our thinking and awareness of the changing environment into the boardroom. I’m proud to say we have an amazing board with a diverse range of skills, functional experience and geographical coverage. This makes it easier to share our varied experiences. It is important we measure our progress and performance against our peers to ensure we are high performing – and we also take time to get out into other markets and learn from our international partners and peers.”

HODSON: “This is really make or break in a technology business – our sector never stands still – and so we make sure we are connected into the wider sector, both locally and offshore, and also that we are investing in innovation out of our own business as well. Spark is a business that enables others to make the most of what technology can bring to the table, so our investment in emerging technologies is very much focused on helping our customers experiment and develop new use cases that solve business problems – whether that’s through 5G, Multi-Access Edge Compute, data analytics and AI or cloud services. We also are focused on how we continue to transform the way we work as a business – with our move to Agile in 2018 a great example of this.”

5. Last year Spark had to refund millions to customers over a wire maintenance service. How did you handle that situation and what was the impact on the brand?

SMYTH: “When Spark discovered the wiring maintenance issue, it moved quickly to investigate what had occurred and took appropriate steps to rectify this, including refunding all eligible customers and working hard to contact all eligible former customers. As a board we received a recommendation from management on this response and we were supportive of the customer-centric approach to resolving the issue. We also discussed with management, ‘what can we learn from this?’”

HODSON: “As CEO, I look at this from two perspectives: how do we do the best job we can to ensure we fix mistakes when they occur, and then how do we prevent them happening again? We are very focused as a leadership team on how we reduce complexity in our business because complexity creates the conditions for these kinds of errors to occur. As a result of this experience, we have implemented a number of new processes that will help us avoid these kinds of issues. In terms of impact on the brand – in our experience the most important thing from our customers’ perspective is that when we make a mistake, we own it and we make good on it, and we believe that is what we have done here.”

6. What did being named Deloitte Top 200 CEO of the Year in 2022 mean to you?

HODSON: “I was extremely honoured and proud to be recognised in this way. However, it was also a reflection of the great team I have built around me and the wider Spark whānau. We have built a great culture and a business that is truly focused on its purpose of helping all of New Zealand win big in a digital world.”

SMYTH: “I was so pleased to see Jolie recognised for her significant achievements. The judges highlighted not only what she has achieved during her time with Spark, but also how she has delivered those achievements. And this is what sets Jolie apart – her focus not only on performance and results, but on creating a more equitable and sustainable Aotearoa along the way.”

7. What is the board’s role in succession planning and bringing on talent?

SMYTH: “Succession planning is one of the most important roles of the board and so it is something we discuss regularly. In addition to board succession planning, where we are focused on the right mix of skills, experience and diversity, we actively engage in CEO succession planning. Through the Human and Resources Board subcommittee, we also spend time every year on talent and succession planning for key leaders more broadly. Understanding our talent and encouraging movement across roles to develop people with broader business perspectives and range of skills is a key focus as this supports our wider leadership capability. We are proud of our focus on internal talent development and progression – of which Jolie herself is an excellent example, having joined as CFO in 2016 and working in a range of leadership roles prior to being appointed CEO.”

8. Does a career in governance beckon and what is the board’s role in helping you achieve your goals?

HODSON: “As an executive director, I have the opportunity to demonstrate my governance capability through this role. I’m sure governance careers may be something I will look to in the future. For now I’m very much focused on giving my all to Spark. It is a particularly special place. I am passionate about the role we play in connecting New Zealanders to the things that matter to them and supporting businesses to become more productive and sustainable through technology. In recent weeks, our climate change challenge has become even more apparent. I believe there is a role for Spark to play in helping navigate how we respond to a more volatile climate as a country – through the digital infrastructure we invest in, the new ways we can use technology to support decarbonisation, and how we ensure no one is left behind in an increasingly digital world.”