Modern Governance and Digital Transformation
Success at digital transformation depends greatly on the board’s ability to change its culture and adapt to new technologies. New tasks and responsibilities emerge for corporate boards in digital businesses, and boards must learn to change their modus operandi. Modern governance technology can be critical in making this transformation.
The New Zealand technology provider Spark.
Spark started life as the incumbent telecoms operator, Telecom New Zealand. The company was born on March 31, 1987, when the Post Office was replaced by three state-owned enterprises, one of which was Telecom. Telecom was privatized and listed on stock exchanges in 1990. In 2011, following changes to New Zealand’s telecommunications industry legislation, Telecom was separated into two distinct companies: Telecom as a retailer of fixed and mobile voice services (and operator of a mobile network), and Chorus as a wholesale-focused operator of fixed-line networks.
The story of digital transformation starts here. “Coming out of the split, Telecom faced significant challenges,” McKinsey writes in a recent note . Technology was changing rapidly, historically important revenue lines were declining at speed, and the company was increasingly competing for customer attention with digital native search as Netflix and Spotify. “
In response, Telecom New Zealand renamed itself “Spark,” and launched a program of digital transformation to boost performance and institute a new culture.
Changing mind sets
Says Customer Director Jolie Hodson (who will become CEO in July 2019): “We need a mindset of accountability, and the daily rhythm it takes to be a retailer. How to spend our money-getting everyone to value a dollar like their own. If I think of Everest as an analogy, then getting to base camp what all about business turnaround-buying into business that provided growth, exiting ones we did not need to be in, slimming down the organization where we needed to and getting the business mind-sets right. “
The board had a massive cultural change: “To go from its legacy infrastructure-oriented focus to becoming a true digital-services provider-effectively embracing the disruption of sweeping the sector,” McKinsey puts it.
Getting Mind-Sets right, the most part of the task, because most of the employees were moved from their previous assignments to cross-functional teams. “The decision that we made in late 2017 to go ‘all in’ with agile was not without experience of agile. What we do not want to do is to be able to do it Says outgoing CEO Simon Moutter.
The board worked to create agile, customer-based culture using digital tools, and the leadership was surprised by the response from management and workers. “There was a groundswell from our people and from the leaders who said they were convinced. Really, “Moutter observes.
The Boardroom Shift
It is clear that the strategy has enjoyed considerable success, as analysts say . The past five years have sparked New Zealand’s margin, with 25.11 per cent in average net income growth. Analysts praise the company’s cost-cutting strategy and improved customer focus.
Modern governance tools are a key enabler of digital transformation, utilizing modern technology to vastly increase boardroom efficiency and security. Boards like that have sparked the board from a meeting-centric orientation to more continuous interaction with the organization, typical in a high-speed digital business.
“In a more command-and-control environment, the mind-set is about working in your narrow center of functional expertise, getting your stuff done, and moving to the next area of the business. Agile, by contrast, is very focused on: “How do I work across this group to deliver the outcome?” Hodson explains.
The board wants to have more issues to cover, things to know and things to do, while becoming more agile and quicker to react through the use of the right governance technology.
Improvements in security, confidentiality and compliance are thus what encompasses modern governance, working with board management software. Cybersecurity and information protection are two of the most important internal issues for the board. This includes both the organization’s data and the sensitive information used by the board
Diligent: Modern Governance Solutions for Digital Transformation
Digital governance solutions make the task of creating standards easier and more efficient.
Diligent Boards is a board portal that offers a secure platform in which boards and compensation committees. The software offers unlimited, cloud-based storage for agendas, minutes, board reports and other important documents.
Diligent Messenger is a communications tool that offers board directors a secure way to communicate without ever leaving the board portal.
Executive compensation committees may opt to use one of the secure, virtual data rooms to collaborate, exchange documents, explore trends and develop their standards for pay for performance.
But good governance is not just one thing – so why buy software that only manages your board documents? At Diligent, we empower leading organizations around the world to make good business decisions. In the ever-changing landscape of the world, governance has not kept up with the fast pace of change. Infrequent meetings, the use of paper for records and materials, and the use of secure communication tools for sensitive data. Today, threats come fast and furious, from a hacker attack in Belarus to breaking news about boardroom malfeasance. Issues, events, and calls for regulation in the blink of an eye. In this environment, opportunities will not wait.
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