BoDs are responsible for ensuring an appropriate mix of cognitive abilities, skills, knowledge, and experience are present or available for it to fulfill its function.
Business world becomes much more complex and much more ambiguous, requiring much more world-changing-acts proactively. As one of the strong top leadership pillars, corporate boards need to be more innovation-driven and information savvy, insightful and influential.
BoDs provide an “outside-in” view of the business and takes interdisciplinary lenses to oversee business strategy”: Under today’s “VUCA” business ecosystem dynamic, strategic oversight is challenging, board directors must gain an in-depth understanding of the organization and its eco-environment, bring fresh insight for minding variety of gaps, have the collective insight to present today and foresee the future. The corporate board directors need to be able to guide the senior management team through effective questioning, advising, coaching, and assessment of strategic management, monitor the overall organizational performance and maturity.
Insightful board directors are both creative and critical thinkers who live out of the box, ask open questions to collect relevant information, frame right questions, and think of alternative solutions to complex problems. Information technology savvy corporate boards will have the advantage of pulling enough resources and pushing the right button for changes, enhancing trustworthiness, harnessing innovation, and ensuring their organizations are on the right track to achieve strategic goals timely.
BoD takes significant responsibilities to protect the reputation of a company and set the tone to shape a high performance culture: Reputation management and brand protection become increasingly intertwined and crucial for building long term business advantage. Corporate culture as one of critical, but invisible business success factors need to be deeply analyzed, rejuvenated to improve long term business competitiveness. Culture is not a mythical “thing” that comes automatically. Insightful BoDs should ponder around: What are desired cultures that organizations need to build for enabling business strategy? How to keep a set of coherent culture and consistent corporate reputation across the geographical or industrial boundaries? Can you take a set of primary activities through which the brand name gets communicated and the reputation gets established solidly?Etc.
Corporate reputation is the soft asset of the organization; it becomes increasingly critical in customer centric digital era. The corporate board has to pay more attention to the culture and corporate reputation. It helps the business management determine its direction and assure that the culture supports the strategy, and their organizational brand is strong enough to sustain their vision and reputation. High performance BoDs continue to reform governance practices, continue to raise the accountability of the board toward business reputation and continue to develop strong corporate culture and organizational brand.
BoDs’s feedback on business performance and outcomes help the business management make the timely adjustment for making continuous improvement: Change is evitable with increasing speed. All of these changes bring the significant opportunities and responsibilities for the new breed of digital BoDs to lead more effectively. Insightful corporate boards advocate high-professionalism and provide constructive feedback to the management and set the right tone for leading change. Make the corporate board agenda reasonable and stay focused, keep feedback relevant; continuous, as close to real time as possible. The key point is to well prepare crucial issues and collect feedback even before the meeting starts, and better to invest the time upfront to address concerns and achieve a workable agreement.
In practice, when people are too “fit in,” think the same and act the same, without challenging each other’s point of view, the decision blind spots are created and leadership gaps are enlarged. The feedback gaps at the board level are possibly caused by a homogeneous team setting, conventional wisdom, or outdated common beliefs or best practices. In order to improve communication effectiveness, management agility and organizational resilience. The BoD leadership team needs to become more inclusive, information savvy, recommend the updated playbooks with the ultramodern philosophy and comprehensive insight to guide through the upcoming business transformation, provide invaluable feedback on how to run a high-intelligent and high mature digital business.
The Corporate Board is responsible for ensuring an appropriate mix of cognitive abilities, skills, knowledge, and expertise are present or available for it to fulfill its function. Effective governance practices in the boardroom require a strong commitment to being forward-thinking, innovative, knowledgeable, and independent to steer their organization in the right direction and achieve high performance results consistently.