Monday, February 5, 2018

The Monthly “Digitizing Boardroom” Book Tuning: How to Build a High-Performance Digital Board Feb., 2018

 The directorship in any organization must have the dexterity to adapt to changes and leadership abilities to advise, inspire and motivate.

Modern corporate boards play significant roles in guiding businesses toward the right direction and achieve expected business results. Due to the “VUCA” characteristics -Complexity, Uncertainty, Ambiguity, and Velocity of the Digital Era, the directorship in any organization must have the agility to adapt to changes and build abilities to advise, inspire and motivate a group of people toward accomplishing shared visions and goals. Here is a set of Digital Board profiles.

      How to Build a High-Performance Digital Board

A High Performing Board: Generally speaking, Boards have a couple of main functions such as strategy (input, review, etc), governance (monitoring, risk management), service (providing advice & support to execs), and resource provision (opening their networks etc.). A high performing board would be performing all those roles in a way appropriate to the best interests of the organization. More specifically, what are the key characteristics of high performing boards?

“Digitizing Boardroom” Book Introduction Chapter 3: A Performance-Driven Board Corporate Performance Management has many descriptors and understanding in a multifaceted way. All performance is directly related to the decisions your people make every day - from executives to the frontline, across functional areas and geographical regions. Performances are not just numbers with metrics, they are numbers in context, results related to your GOALs. The BoDs play important roles in setting principles for improving performance management effectiveness and monitoring business performance smoothly. However, many directors think that the role of the director is conformance. The boardroom debate could be: Conformance vs. Performance, which is more important for the Corporate Board?

Conformance vs. Performance: What’s Board’s Priority
Corporate Board is one of the most important governance bodies to oversee strategy and enforce GRC disciplines. Many directors think that the role of the director is conformance. The underlying question is actually fundamental: What is corporate governance, when is it necessary and how should it work? Conformance vs. Performance, which is more important for the Corporate Board? Is it possible that companies are burdening the boards with so many different tasks that the main task and focus of the board, which is to create long-term profitable companies, will be inundated by all other types of issues?

How to Build a High-Performing Board
Corporate Board plays a significant role in overseeing organizational strategy, practicing governance and exemplifying leadership disciplines. However, most of the boards still operate on a traditional approach to recruiting for expertise and executing its function; what’s the paradigm shift in building a high-performing Board, and how to create the synergy, trust, and confidence of BoDs?

What are the Barriers and Pitfalls to Build a High-Performance Board The contemporary corporate board plays a crucial role in overseeing business strategy and monitoring organizational performance? An effective board enables and directs management towards good outcomes, and ensure the business is on the right track to reach well-defined business goals. If the results are lacking then the board effectiveness must be questioned. More specifically, what are great inquiries which can help you deepen the understanding of the barriers and digging through the root cause of ineffectiveness, in order to build a high-performance and digital ready board?

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