Tuesday, February 16, 2016

A Dynamic Board with Digital Fit BoDs

Dynamism consists in being able to break away from the static, being proactive.

As always, the spirit comes from the top, leadership is a key success factor for any organization's success. With many organizations and the society as a whole reach the inflection point of digital transformation, modern corporate boards as a top governance body play a crucial role in setting business culture tones and driving organizations’ digital transformation. Due to the complexity, uncertainty, ambiguity, and volatility of digital age, the directorship in any organization must have the ability to guide, inspire and motivate a group of people toward accomplishing shared visions and goal. But how to identify the digital fit BoDs and how to build a dynamic board to adapt to the rapid changes?

Digital conductors: Corporate board oversees business strategies and provides advice and resources for the business's growth and governance. It’s a collective responsibility for both the senior leadership team and BoD to lead business transformation and orchestrate a digital symphony. At global setting, the BoDs are like the “conductors” who have to advise the top leadership team and take into account the time lag (a fraction of a second) of the orchestras on another continent. This looks more and more like the situation faced by other organizational leaders. They have to keep the in-house order, and must, simultaneously, coordinate with distant contributors; otherwise, the "music" will jar the ears. The successful conductors may not play the instrument themselves, but they can successfully conduct the music of ‘balance’ to inspire innovation, setting principles, and enforce standards as well.

Strategic critics: One who criticizes is a critic. Effective BoDs are the business advisor and even strategic critic who master at critical thinking: Constructive criticism is the criticism or advice that is useful and intended to help or improve operational excellence and business maturity, often with an offer of possible solutions. constructive criticisms such as good board advice or timely feedbacks are crucial to business changes. The BoDs as the business critic can provide excellent feedback which gives the top management accurate information to improve; great questions to self-aware; and keen insight to help the organization grow and mature. We all have a cognitive bias whether individually or collectively, including senior leaders like BoDs. Critical thinking is analyzing, looking beyond the surface, not just accepting things at face value but asking questions and being active in your thought process. Effective BoDs are excellent critical thinkers who can ask insightful questions to get at the truth of a situation while being mindful is a powerful tool. More practically, critical thinking implies some systematic methodology, employing and applying the criteria deemed appropriate by the thinkers involved, to arrive at the tangible and reproducible truth - the commonly accepted objective, testable or measurable, time-bound reality.

Business VisionaryLeadership is all about the future and change. Vision is an integral part of the directorial role. It doesn't have to be exclusive or externally focused. In most cases, it must be a shared, collaborative vision, because the board of directors is responsible for setting the vision for the enterprise. Leadership vision is to serve as an enabler to clear the path, whether that be the elimination of obstacles or to provide coaching and guidance (influence). The vision should be stable enough to make it worthwhile to make a concerted effort to attain it and dynamic enough to be able to react to any change in business direction or context. BoDs as digital visionary can make a better influence on guiding the organization toward the right decision and bring profound insight in transforming the business up to the next level of business maturity.

Dynamism consists in being able to break away from the static, being proactive. Dynamism is to get out of the created mental boxes; express yourself totally through whatever means. Stop creating boundaries, take long leaps, wide jumps. Dynamism means free and progress. Thus, it is the power of BoDs as dynamic leaders to ride the change wave and drive business transformation with digital dynamism.


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