Wednesday, May 12, 2021

Corprorate Board Maturity

The Board of Directors as top leadership roles should have multi-intelligent wisdom, to envision and bring a new perspective on improving business maturity.

Leadership or directorship is about setting directions and inspiring changes; when necessary, break down the old rules, and establish digital principles and landscapes. Senior leadership should represent a high level of leadership maturity via profound thinking and sound judgment.

 BoD leadership needs to be future oriented, steer the organization towards the digital journey with a clear vision, a solid strategic roadmap and effective feedback system.

Analyze the needs of the board, its strengths and weaknesses, and determine what skills are needed: Senior leadership is neither the status quo, not a ceremonial role only. The corporate boardroom composition will directly impact on how they lead and which tone they will set for the entire organization to follow. Most corporate board directors are top seasoned executives with decades of experience. They should be the specialized generalists with “T” shaped expertise and embrace the seemingly paradoxical point of views, stay on strategic focus in order to gain a deep understanding of varying strategic topics holistically. To amplify leadership influence, digital leaders including corporate board directors need to be constantly visible by sharing vision and enabling others to share it.

Leadership is about developing people not managing them. Senior leaders have a personal and moral obligation to develop more leadership. The majority of directors and boards do not understand or are reluctant to face the probability that is their board's culture, is the reason, their organization and their board performs poorly. Far too often the term "leadership" is thrown around loosely and without any regard of true meaning. The high-effective and high mature leadership at the board level is based on vision, learning agility, and influential intelligence.

Strengths are reinforced and extended through delegation and mentoring. BoDs should analyze the needs of the board, its strengths and weaknesses, and determine what skills are needed. The new generation of leaders understand the difference between influence and authority, and therefore are completely at ease in influencing and participating in shaping high performance teams. The organizations need to embrace and display to make training/development programs not only value-added, but also inspiring.

Become well versed on the latest trends and well rounded to drive transformative change:
There’s known unknown, there’s unknown unknown, everyone perhaps has some blind spots blocking the way. The vision thing matters in the boardroom as a clear vision is a good combination of perception, prediction, and precision. Visionary BoDs help to predict and co-develop a good strategy and overcome the challenges and uncertainty on the way to the future. They have a clear choice among future scenarios that advocates future trends from an expanding global marketplace to the rapid pace of technology change that must be considered. They set digital principles and trends, oversee a winning strategy and ensure its smooth execution.

With “VUCA” digital new normal, as a senior business leader such as BoDs, the blind spots will cloud your vision, trigger your negative emotion, and cause your ineffective decision-making. Often the answer to many business questions is not just “right” or “wrong,” but there are many shades in between. The corporate board needs to be able to leverage diverse viewpoints via listening, brainstorming, and questioning to be well rounded for driving transformative change and leading effectively.

Monitor business performance by understanding and agreeing on the company’s key performance metrics: The corporate boards not only oversee the strategy, but also monitor the performance. The corporate board’s business performance monitoring is not limited to financial performance only, but also to the firm’s performance in creating value for people- employees and customers. The struggle for performance measurement or key performance indicator selection is that they sometimes need a number of measures around the same issue to gain a complete picture. Thus, BoDs can help to participate and agree on KPIs selection and measurement to ensure business management effectiveness.

High performing corporate boards oversee and advise management so as to ensure the best fit between (short term) profitability (shareholders) and long-term sustainability. For a corporate board to monitor performance, it is critical to enforce multidimensional shareholder value by looking at all sorts of business success factors such as leadership, culture, processes, and make improvements if necessary, then determine whether new approaches/methods/tools would be a good addition to the mix, to ensure high performance of management practices.

The Board of Directors as top leadership roles should have multi-intelligent wisdom, to envision and bring a new perspective on improving business maturity, set inclusive culture tone and shape the world class talent management, steer changes and ensure the business to develop a creative workforce and a fair workplace to maintain viability.


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