The senior business leaders such as corporate boards today need to be future-oriented, see further than what all others see.
In a world of rapid changes, senior leaders like BoDs look into an unknown future and attempt to define the landscape with its opportunities and risks.
Influential boards of directors take the praise or blame depending largely on their abilities to influence business outcomes: Board directors with strategic acumen present an in-depth knowledge and expertise in multiple domains for overseeing strategy development of the business by seeing things from different angles and providing invaluable feedback to business management. Asking good and pertinent questions is critical for governing changes, scrutinize key success business factors and monitor business performance.
Business performance measures are numbers in context, results related to your strategy. The corporate boards of directors would have to be able to detect relevant hints for further questioning or confirmation; quickly assess any numbers and facts they are given, against applicable benchmarks and teams for leading business transformation. The corporate board’s oversight of strategy management ensures seamless alignment of business goals & capabilities, processes; minimizes risk, lead changes step-wisely.
Insightful boards of directors oversee the soft capital investments such as human capital, information technology capital, business reputation capital investment, etc: The BoDs oversee critical strategic investment. To improve corporate board effectiveness, the key point is to prepare crucial issues, collect information and feedback, better to invest the time up front to address concerns. BoDs need to review important capital allocation and monitor the important investment performance, accommodate diverse opinions and assess them for improving performance coherence.
Running a competitive business is not only about the performance now, but also about the future performance with a long-term perspective. Insightful BoDs 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. To improve corporate board effectiveness, 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, and demonstrate multifaceted business value.
Innovative boards of directors oversee innovation management, co-develop the innovation agenda to build competitive advantage: Because innovation is one of the differentiated capabilities which are underpinned by varying business elements. It is simply too important to delegate to the management without the corporate board oversight. Monitoring innovation management performance is critical to improving the innovation management success rate.
The corporate board needs to do great work for developing a world-class organization with a strong culture of innovation. In addition, ensure there is a rewarding system in place for encouraging creativity. Also, the corporate board needs to review executive level innovation scoreboard with important KPIs, to keep track of innovation progress and provide invaluable feedback,
Organizations are always on, interdependent, and hyper-connected nowadays. The senior business leaders such as corporate boards today need to be future-oriented, see further than what all others see; be able to think critically, understand issues from new angles, close blind spots, bridge gaps, broaden perspectives, deepen perception; prioritize and laser focus on the most important issues, in order to steer the organization in the right direction.