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.
Hence, corporate governance rules and principles need to be followed to improve effectiveness and transparency of the company. The corporate board as one of the critical governance bodies requires multidimensional thinking, dots connection, asking insightful questions to complement each other’s strength, and balance of multiple perceptions in guiding businesses in the right direction.
Leaders depend on perception to rule and to set vision and goals; provoke thoughts and actions to unify the varying perspectives of stakeholders: Uncertainty and risk are inherent in every venture, leadership is about vision and change; it’s about creating a powerful future that is compelling in the present, that utilizes the best talents, capabilities, cultures, and resources of their people and organization to produce meaningful and invaluable results. The senior business leaders such as corporate boards today need to see further than what all others see; understand issues from new angles, broaden perspectives, deepen perception; predict what will happen and take steps further - what organizations should do upon it.
Corporate boards oversee business strategies. As part of the strategy development effort, top business leaders need to know their company inside-out, discover the “innate strength” of their business, make an objective assessment of their business capability maturity, provide invaluable feedback to either strategy development or execution. Not only does the development of a good strategy depend upon identifying the core problem, but also how to leverage the limited business resource or capacity to solve them effectively. The intention is not about finding the perfect solution but making progressive problem resolution. It's critical for senior business leaders to clarify long-term business priorities and short-term concerns, identify and clear business barriers or obstacles, optimize business structures, and systems, which may impede the vision or stifle changes. A strategy is long enough to plan a company's future with confidence and short enough to sense the urgency to execute it.
Monitoring of business performance and conformance in respect of the strategic goals and objectives, strategy, and policies: Both performance and conformance are important at the board level, to run a high performance business. Corporate boards need to make a laser-focused performance-driven agenda to ensure the business achieves the higher than expected business results. They also need to enhance compliance discipline to ensure that the company actually complies with the regulations relating to its operations for keeping the lights on proactively.
The corporate board’s role, in large part, is to make good decisions that enhance the value creation for the organization. Performance without conformance is not genuine and sustainable; conformance without performance adds very little to the firm value. Business performance should be judged at the enterprise level considering the overall satisfaction over each combination of cost, schedule, and stakeholders’ satisfaction. Thus, BoDs have to spread their time on varying important issues scientifically. Conformance is critical, but there’s no doubt that the board only fulfills its role to shareholders and the management team when it is focused on performance.
Governing risks, setting the risk appetite and risk framework for an enterprise: Generally, there are two types of risks: downward risks (loss of value) or upward risks (opportunity to make profit, expand the business to create value). Some risks can be quantifiable; some can only be approximated. Often a big risk is that the risk management system is detached from the management of the business. Corporate boards need to work closely with the senior management for mastering risk intelligence, identify both business risks and opportunities and keep focusing on doing fundamental things right.
Corporate boards need to ask the management tough questions such as: What are the history risks lessons being learned? What are the predictable facts based on history, current status quo and risk clues? Why do you think that most risk management has not been done effectively? What are the risk management blind spots? Is it because the risk management program is immature and shortsighted? What to do with this risk even when the risk management program is immature? Etc.The BoDs and the management work closely to define organizational risk appetite and risk attitude so they know the business tolerance of their enterprise for the resulting downsides risks. So the business can manage risks, enable continuous improvement with the power of leadership support, and integrated data-based insight.
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. They keep enhancing corporate governance discipline such as setting principle guidelines, grounding rules and policies, preventing problems, managing risks, reviewing the organizational objectives holistically with the correct strategy lenses/focus, and monitoring performance results continually.
Leaders depend on perception to rule and to set vision and goals; provoke thoughts and actions to unify the varying perspectives of stakeholders: Uncertainty and risk are inherent in every venture, leadership is about vision and change; it’s about creating a powerful future that is compelling in the present, that utilizes the best talents, capabilities, cultures, and resources of their people and organization to produce meaningful and invaluable results. The senior business leaders such as corporate boards today need to see further than what all others see; understand issues from new angles, broaden perspectives, deepen perception; predict what will happen and take steps further - what organizations should do upon it.
Corporate boards oversee business strategies. As part of the strategy development effort, top business leaders need to know their company inside-out, discover the “innate strength” of their business, make an objective assessment of their business capability maturity, provide invaluable feedback to either strategy development or execution. Not only does the development of a good strategy depend upon identifying the core problem, but also how to leverage the limited business resource or capacity to solve them effectively. The intention is not about finding the perfect solution but making progressive problem resolution. It's critical for senior business leaders to clarify long-term business priorities and short-term concerns, identify and clear business barriers or obstacles, optimize business structures, and systems, which may impede the vision or stifle changes. A strategy is long enough to plan a company's future with confidence and short enough to sense the urgency to execute it.
Monitoring of business performance and conformance in respect of the strategic goals and objectives, strategy, and policies: Both performance and conformance are important at the board level, to run a high performance business. Corporate boards need to make a laser-focused performance-driven agenda to ensure the business achieves the higher than expected business results. They also need to enhance compliance discipline to ensure that the company actually complies with the regulations relating to its operations for keeping the lights on proactively.
The corporate board’s role, in large part, is to make good decisions that enhance the value creation for the organization. Performance without conformance is not genuine and sustainable; conformance without performance adds very little to the firm value. Business performance should be judged at the enterprise level considering the overall satisfaction over each combination of cost, schedule, and stakeholders’ satisfaction. Thus, BoDs have to spread their time on varying important issues scientifically. Conformance is critical, but there’s no doubt that the board only fulfills its role to shareholders and the management team when it is focused on performance.
Corporate boards need to ask the management tough questions such as: What are the history risks lessons being learned? What are the predictable facts based on history, current status quo and risk clues? Why do you think that most risk management has not been done effectively? What are the risk management blind spots? Is it because the risk management program is immature and shortsighted? What to do with this risk even when the risk management program is immature? Etc.The BoDs and the management work closely to define organizational risk appetite and risk attitude so they know the business tolerance of their enterprise for the resulting downsides risks. So the business can manage risks, enable continuous improvement with the power of leadership support, and integrated data-based insight.
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. They keep enhancing corporate governance discipline such as setting principle guidelines, grounding rules and policies, preventing problems, managing risks, reviewing the organizational objectives holistically with the correct strategy lenses/focus, and monitoring performance results continually.
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