Contemporary corporate boards play significant roles in guiding businesses in the right direction and achieve higher than expected business results consistently.
In face of the “VUCA” reality, organizations need to keep optimizing their management discipline to survive the fierce competition and thrive with the long-term business advantage.
The BoDs take initiatives to facilitate stakeholders conversations, set the right cultural tones, and build up a positive emotional climate to improve the success rate of strategy execution. They identify promising big ideas for investment that will accelerate strategic change, continue to prioritize and adjust the strategy, to leverage growth potential of the company. Doing this will pay huge dividends and build long term competency of the company.
Initiate practices for the organization’s leaders to actively ensure the organization is walking the talk of its values: Corporate BoDs should work closely with management to clarify vision, purpose, value, principles, which are part of corporate ideology/philosophy that shapes a unique culture and a corporate brand. A corporate board of directors duty to shareholders encompasses the need to effectively manage stakeholder issues so they do not become a risk to shareholder values. The whole value chain needs to be aligned, engaged, and contributing so different stakeholders get their fair share, define the ideal business model, products & services, distribution, and business brand.
Corporate value is a multi-dimensional concept; it could mean different things to different people. Shareholder values do not begin and end with financial profit only. Smart corporations and shareholders know that focusing only on short-term economics can lead to negative values that may outweigh finances in the long-term. With boardroom oversight, all parties can agree on the common value proposition, keeping a clear business value stream. The BoDs oversee critical strategic investment. To demonstrate value, it is important to convince the shareholders of new initiatives with solid business justification, showing them the potential business benefits to meet the strategic goal of the company.
Initiate BoD practices to ensure active leadership in developing and monitoring coaching/training programs to realize the vision: Leadership is about developing people, not managing them. It is a mindset that requires commitment at the very top of an organization, from the boardroom all the way to the bottom without exception. Your leadership development interventions and learning journeys will do well to be strongly aligned with the strategic direction of the organizations. Leadership training approaches need to be vertical and developmental moving forward
If there is a quality leadership shortage in your organization, it is a strategic imperative that “leadership” needs to be re-imagined, explored, understood and embraced for it to be of any value. Great plan to integrate coaching into leadership development practice could be made more impactful. Begin with re-designing a strategy, rediscovering the talent pipeline, and re-training leaders with strong character and differentiated professional competencies to close the gaps and make differences.
Contemporary corporate boards play significant roles in guiding businesses in the right direction and achieve higher than expected business results consistently. The effective functioning of a board depends on a number of factors, including the mix of cognitive differences, knowledge and experience among the directors. Running a high-performance corporate board is not an overnight sensation, but a finely-planned journey and continuous improvement in setting the right risk-taking appetite, taking logical steps for practicing GRC disciplines proactively.