Thursday, December 30, 2021

Innovativeperspectiveofcorporatebod

The BoD’s governance practice isn’t just about putting restrictions on what you can do, it is also about monitoring and knowing when things are not going to plan so that you can take appropriate action at the right time to improve the corporate effectiveness and consistency.

It’s almost the end of the year, corporate board directors make their resolution to shape a clear vision of their organizations, and share fresh perspectives on how to reinvent an innovative company. 

Driving digital paradigm shift is not a passive activity, it is a proactive pursuit. Corporate board directors are wise advisors and top leadership roles, able to ask insightful questions, look forward and actively position the business in the right place to take full advantage of opportunities and manage innovation in a structural way.

Are you provocative: Quite many companies get stagnated due to unprecedented uncertainty and a highly dynamic business environment, they often miss the opportunities for business growth or lag the speed of the marketing change. They tended toward being reactive, not proactive. The corporate boards set the culture tones, perceive the emerging industrial trends, even look beyond their vertical sectors, to capture growth opportunities. They also play an important role in setting good policies in the language understood by varying stakeholders, encouraging growth mindset, spurring innovation, and ensuring their organization is in the right position to build long term advantage.

Forward-looking companies reach the inflection to transformative change which starts with the realization that where you can currently no longer reach the long-term business vision due to limited business capacity, fierce competitions, or frequent disruptions. Corporate board directors as insightful business advisors who have interdisciplinary expertise and enriched professional experiences can connect wider dots, help the management team see further, dig deeper, oversee the strategy by providing invaluable feedback as outliers. Too often in many organizations with overly rigid hierarchy, decision-making and problem-solving are made as a reaction to outer impulses, crises, and demands, and look at issues in a reactive mode as a ‘problem.’ It would be the great time for BoDs to spend more time on proactive problem-solving, unlocking the full potential of the organization, besides performance monitoring and compliance related judiciary duties.


Can you provide guidance for the organization’sfuture?
Many organizations are inundated with tactical tasks and daily operational duties, they don’t spend enough time on scrutinizing the long term vision and strategy. Senior leadership roles such as board directors are the guiding forces, identify blind spots of management discipline, pinpoint bottlenecks in corporate resource alignment and capacity development, harness communication to the organization’s shareholders. Besides “keeping the light on,” corporate boards should have the right dose of risk tolerance, focus on innovation related debates and oversight, as innovation is simply too important to delegate to the management completely. Effective corporate boards assess portfolios of innovation investments, continually evaluate individual and aggregate investments in terms of value, risk, and reward, map the strategic objectives into performance indicators. So they can steer the business in the right direction and explore growth opportunities more confidently.

Strategic planning is not static nowadays in the face of a dynamic business environment, thus, BoD’s oversight of planning needs to be updated and adaptive while coordinating different divisions which sometimes compete for resources. BoDs as one of the most critical governance bodies of the company helps to set the tone for encouraging learning, creativity, building an innovative working environment in which everyone is at the same playing field to follow the same set of rules despite differences in roles; improve decision coherence at the different levels of the organizational hierarchy, and spot change agents or innovators for leading transformational changes.

Can you expand the zone of possible change and development as a high-involvement process? Future brings change; change means more opportunity for business advancement. Change leadership at the board level is important because change management is an interdependent ecosystem that includes many business factors such as business goals, policies-setting, internal control requirements, process improvements, customer satisfaction, employee engagement, etc. Driving digital paradigm shift is not a passive activity, it is a proactive pursuit, sometimes you have to change underlying values, functions, structures. If you want to change the fruit, you need to change the root. Board directorship is about setting directions and inspiring changes; when necessary, break down the old rules, establish new principles, develop the best and next practices for making change happen and sustain its effect.

Change is difficult, it’s important to understand the psychology behind changes. Sometimes there is a matter of management blindness. Things are going OK now so they will be OK in the future." That attitude will lead the organization to the fragile status and even cause the business to fall unexpectedly as the business environment continues to change with increasing pace. Corporate boards as change sponsors enables the management to set the right priority, look forward and actively position the business in the right place to take full advantage of opportunities and manage change in a structural way; encourage people to question the status quo and think independently and create an environment that encourages dissent and candor. It’s about proactively and continuously trying to improve/develop/ change everything in a prioritized order as long as it creates a more long-term business advantage.

There is a myriad of information, conflicts, and change inertia in the modern business environment. The BoD’s governance practice isn’t just about putting restrictions on what you can do, it is also about monitoring and knowing when things are not going to plan so that you can take appropriate action at the right time to improve the corporate effectiveness and consistency.

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