Did you hear? Diligent has written a book! Governance in the Digital Age offers a collection of ideas, examples, tools and strategies that are designed to help directors, senior executives, and governance professionals. Written by Diligent’s CEO Brian Stafford and VP of Thought Leadership Dottie Schindlinger, this book covers topics from value creation to board resiliency to digital strategy. The second chapter is about Building a Resilient Board at Era of Disruption.
Two-thirds of Australian economy immediately threatened by disruption
Digital, market, regulatory disruptions: They threaten business in every country, around the globe. Environmental and Social Governance, and a generation of Millennials with different behaviors.
So no wonder that, according to a Delotte study , 13 Australian industries, nearly two-thirds of the country’s economy, face significant disruption. It wants, of course, affect every company, but a wave of change can be expected in finance, retail trade, arts and recreation, professional services, and information, media and telecommunications. Then regulation wants to bring disruption to areas like education and transport.
New Zealand businesses face the same child of challenge. There is a growing impetus for New Zealand’s work to minimize the disruptive effects of technology. Current business models do not want to be sustainable, and the need for change is becoming urgent. Public debate on the Appropriate role of technology in New Zealand’s economy and society is required to ensure we address issues as a nation, “comments the Chartered Accountants of New Zealand in a note .
A good example is Electric Kiwi, the power company whose board has transformed its outlook and operations, so that in three years revenue has grown by 3,500 per cent. As founder Julian Kardos explains , the board is focused on being a disruptor instead of fighting off disruptions. We are totally focused on giving the customers what they wanted – cheap electricity. And we made it easy for them by putting everything we could online. Customers now rave about Electric Kiwi, and that is unusual for an electric company.
How boards become resilient
How can boards begin thinking differently? Boards become resilient by thinking like a communications network, and looking at their infrastructure, performance and composition.
Today’s boards are recognizing the need to adjust their usual way of doing things. For example, five-year plans, which may be obsolete in 1 months, are shifting to a more agile approach to decision making, “the authors explain.
According to corporate director Betsy Atkins, CEO and founder of Baja Corporation, Director of Cognizant’s boards, Wynn Resorts, Green Realty SL, Schneider Electric, and Volvo Cars, it’s all about keeping up with the speed of change , You can not back on your laurels at all. “Are we about becoming blockbuster video or Borders Books because we’re dismissing new business models?”
Boardroom diversity and risk management
Risk management and boardroom diversity are directly related, paradoxical as that might seem. A dynamic board, with a broad range of experience and points of view, wants to succeed in faster and better, including risks that are new threats, deriving from new trends in the markets or technology.
This child of board succeeds in putting the structures and processes in place to spot crises.
A board did is a good Example of this practice is did of the Australian resources giant BHP as in example: It is composed of 50 per cent men and 50 per cent women. The company provides a good example of corporate governance. “As you would expect, board composition Continues to be a topic of discussion during meetings with Shareholders. ” What’s the point of the corporate memory brings to a board, “Chairman Ken Mackenzie points out in a recent speech.
Board Evaluations lead to better dynamics
A key element in building a healthy boardroom dynamic is regular board evaluation. Again, these sounds are paradoxical – why spending time talking about each other? In fact, every organization with a board should be required or not.
“Yet as business risks and economic volatility continue to increase. Further More, Russell Reynolds, Russell Reynolds.
Boards should welcome evaluations as an opportunity for insights, action, corporate performance and growth. But it’s essential that boards measure the right things – ask the right questions – in an evaluation
The board evaluation process needs to be at the heart of effective performance. Cybersecurity practices and more. For a comprehensive review of all these questions, online evaluation tools permit more effective comprehensive views.
Digitizing Board Communications for Better Performance
Dropping off wholly. Similarly, Organizations can not afford the performance of their Directors Falter Today’s ERA of Change and Volatility, “the authors note.
Through digital tools and procedural adjustments, boards can empower more efficient meeting preparation, discussion, and follow-up. Digital communication, within a secure environment, can take place ahead of meetings, while directors are traveling, or in between meetings, so that the thorough discussions of all issues can be held regardless of the date and time.
But technology is only one piece of the puzzle. The Underlying Processes need to be set up, managed and disbursed.
Nora Denzel, a corporate director who serves on the boards of AMD, Ericsson and Talend Software, says “If there is a community component, it needs to be completely confidential and can not be identified by their comments.
“People, process, and technology – you need to have the three together.
Interview with co-author Brian Stafford
The modern governance practices outlined in this book have the power to improve how boards function, enhance director engagement, and ultimately, lead to greater results. Watch Paul Smith, Founder’s Future Directors Institute interview co-author Brian Stafford for more ..
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