A Strategic Board has a view of looking ahead, an insight of looking deeper, and a competency of looking beyond.
Modern corporate boards play significant roles in guiding businesses in 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 are the multiple perspectives of shaping a strategic boardroom.
Shaping a Strategic Boardroom
Shape a Strategic Boardroom by leveraging Balanced Scorecard and Developing Digital Practices The corporate board is one of the most critical leadership pillars in modern businesses. The level of the board accomplishment may vary but the essential competencies will remain the same, Digital BoDs need to be insightful, strategic, effective, and influential. In reality, the time of board members is stretched too thin so they do not allocate enough time to understand strategic issues and many boards aren't active enough to catch the derailment of strategies. In practice, how to shape a strategic boardroom by taking a rational approach, leveraging balanced scorecard, and develop the best and next digital practices?
The “Digitizing Boardroom” Book Introduction Chapter 2: A Strategic Board The board is accountable for the strategic oversight and responsible for ensuring that the strategy being followed is appropriate for the organization and the environments within which the organization operates. The oversight of business strategy and change agenda are the two places where most boards can add value on, BoDs as top leaders need to have capabilities to think strategically for the business’s long-term prosperity. It is also a digital imperative to build a strategic board for improving strategy effectiveness and directorship maturity.
Is Strategic Planning Actually Part of Corporate Governance? From Wikipedia: Governance System - Listen to people involved, identify suspected key indicators, measure, attempt improvement, track, analyze, learn, and repeat; while strategic planning is viewed as a process for determining where an organization is going over the next year or—more typically—3 to 5 years (long term).
A Strategic Board One of the most important responsibilities of the Board is to oversee the business strategy; however, it doesn’t mean Board itself is being strategic enough. In some cases, Board members time is stretched thin so they do not allocate enough time to understand key issues and in many cases board members are not motivated; others wonder why many Boards aren't active enough to catch the derailment of strategies. So what are the requirements to become a truly strategic Board?
Three “S” to Digitize Boardroom The digital organization is a living thing with the ability to continually change as the world changes and evolves with an intersecting and interacting business ecosystem seamlessly. If a Board is to fulfill its fiduciary responsibilities to its stakeholders, it needs to take a professional and systematic approach for assessing strategy, prioritizing agendas, advising changes, overseeing risks and keeping track of business performance by applying efficient tools. The corporate board is also the mastermind of the digital transformation by focusing on the following three “S.”
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