Tuesday, February 11, 2020

The “Good to Great” Journey of the Corporate Board

Great board leaders inspire. Vision, intention, and wisdom need to be woven seamlessly to amplify leadership impact.

Most organizations today are looking for the strategic direction of driving transformative changes. The open digital paradigm is not just about opening technology, becoming transparent. It's a new paradigm shift.

The directorship in any organization must be able to make influence from mindset to behavior and evolve to what is needed next for radical changes. Being transformational or being strategic goes beyond skills only, it's a "good to great" journey of the corporate board to realize a clear vision, enforce empathetic communication, amplify leadership influence, and make continuous improvement.

The good board advocates changes and the great board catalyzes digital transformation: Governance is indeed about how well an organization is being run and if set up in the right, way, it should effectively oversee the achievement of the business vision, mission, and objectives. Effective governance facilitates the successful functioning of an organization while ensuring there are adequate controls in place.

Although a board should be long-term oriented, the perspective of a great board must encompass the past, present, and future when assessing risks and growth opportunities. The corporate board should frequently brainstorm the digital impact on the business, gauge conditions and choices, leverage emerging digital trends to the business’s strategic planning and drive digital transformation to achieve its vision through an ambitious mission.

The good board sets operational standards; the great board enforces innovation governance disciplines: It is important to set rules for safeguarding the status quo, but not stifling innovation. A good governance standard provides a common corporate "language" as well as work instructions to ensure the business running smoothly.

Innovation needs a level of guidance. Innovation governance is an important perspective to improve the innovation management success rate. Innovation has to deliver business objectives and it needs the right kind of governance to thrive. The corporate boardroom practice for innovation governance is to advocate, steer, and sustain innovation. A well-designed innovation governance framework helps to clarify innovation purpose, oversee innovation variety and velocity, manage risks, steer and sustain innovation management to maximize its business values

The good board advises, but the great board inspires: The corporate board is one of the most crucial governance bodies in the modern enterprise. Plato used the term governance in a metaphorical sense to lead or rule strategically. Don’t just see governance as constraints, but rather an opportunity. Governance as a discipline is a living breathing entity. It is in the best interest of corporate boards and shareholders to have the moral and natural purpose of governance consists of assuring, on behalf of those governed, a worthy pattern of good while avoiding an undesirable pattern of bad.

In practice, questioning, pulling or communicating, etc, are the abilities of good boards to oversee and advise management so as to ensure the best fit between short term profitability and long-term sustainability. Great board leaders inspire. Vision, intention, and wisdom need to be woven seamlessly to amplify leadership impact.

As the governance discipline has in the past continually changed its shape and matured, there is no doubt it will continue to do so as the winds of change in the corporate world blow across the business ecosystem. Good boards are compliance-driven; great boards are performance-driven; good boards take compliance lens to ensure nothing is broken; great boards set the digital leadership tone to break outdated rules, and develop digital principles; good boards have peer relationships, but great boards present creative tension, etc. Ultimately, the corporate board takes the praise or the blame depending largely on their ability to influence the business outcomes and drive progressive changes..


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