Saturday, January 24, 2015

What’s the Digital Theme to Run a Global Board

The basis of differences can be harmonized on the global scale based on the common principles.

The world has become hyper-connected and interdependent, there are many common management practices in building a multi-national organization. However, there are still very few truly global companies or empathetic global leaders or boards. From the corporate governance perspective, What’s the digital theme to build and run a global board?

The basis of differences can be harmonized on the global scale based on the common principles. The criteria being used by differing countries or continent such as Europe, Asia-Pacific, and Latin America are bound to vary, relative to their respective economic status regulations. The criteria themselves, regardless of the aforementioned disparities, are founded purely on the Principles of Corporate Governance. So the basis of difference can be harmonized on the global scale. And such principles are themselves evolutionary in nature. This would imply, in general, any form of innovation will be inspired by the circumstances of the particular time. Hence, it will invariably be reactionary in nature rather than proactive. So the best you can master in inspiring innovative approach in evolving the corporate governance could just be, becoming competitively adaptive to the ever fast changing world. 

Accountability should be a common thread throughout all global boards, regardless of nation diversity. Global boards will, for the most part, go through a learning process, relationship building and understanding of what it takes to get cross-cultural agreements. It starts with agenda agreements before moving forward but takes patience and understanding of potential obstacles, differences, and language that translates common meaning. Careful thought to where boards meet, venue and time to get to know each other is important as well, while at the same time keeping the focus of process and desired outcomes.

Corporate Governance Framework should promote transparent, effective & efficient markets. If organizations were, for instance, to consider just how evolutionary the corporate governance should be, with specific reference to the overriding principle, which states that corporate governance framework should promote transparent & efficient markets, and be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities. There is a huge challenge that businesses are faced with just only on this one Principle amongst many others. There appears to be merit in having a geographically diversified board for a company nurturing the idea of going global. Notwithstanding the advances in information technology, organizations will continue to depend on individuals to give an informed appraisal of the local environment. There is little wonder therefore why those companies that recruit their board members more globally, tend to find it easier to scale up and gain global business empathy.

There is still a long way to achieving corporate governance maturity. Corporate governance in many nations has either evolved leading massive corporate failures or some economic crisis. However, under such conditions holistic view of improving corporate governance is unforeseen. In this neo-liberal global economy, any particular system of governance cannot work for a country. There needs to be a balanced approach for developing a corporate governance system keeping in view the country's intrinsic requirements while supporting global exigencies. The latest digital technologies shall open the new possibilities to communicate and collaborate cross-border, but more critically, the highly talented, and highly professional global leaders & BoDs will bridge the cognitive difference and bring the new insight of corporate governance to achieve digital agility.  


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