Insightful BoDs have the advantage of pulling enough resources and pushing the business model of launching change, innovation, and steering their organization forward step-wisely.
A digital-savvy corporate board should take initiatives to provide strategic insight, pay more attention to the most critical issues, evaluation, analysis or long-term planning should top the list in the corporate board’s agenda to lead the organization forward and make profound leadership influence.
Boards of directors set policies and principles to design real transformative changes: Change is the only constant, and the speed of change is increasing rapidly. The board directorship is about setting directions and inspiring changes. The BoDs should become interactive change agents that represent the organization, stockholders, and senior management, gain deep insight into how things work by analyzing the aggregates, make a significant influence on shaping the digital mindset, setting digital change tones, and striking the right balance of “Push” and “Pull” in Change Management.
Asking the right questions helps to validate how thoroughly and deeply the board is thinking on a particular issue, avoids group thinking. eliminates blind spots and leverages intuitive listening to capture the important information. The board directors as “change agent” can ask more insightful questions to scrutinize change effectiveness, especially for large-scale business transformation, set principles to design transformative change, and ensure the senior management have the intestinal fortitude to hold up to corrections in the face of quarterly earnings report pressure. The more effortlessly you can harmonize business relationships, align, integrate, and optimize the important business factors inside an organization, the closer you can accelerate performance and lead transformative changes seamlessly.
BoDs as the business critic can provide excellent feedback which gives the top management accurate information to improve: Upon constant change or disruptions, BoDs need to become information-savvy, be sensitive to emergent trends and keep balanced views. The board feedback on business strategic planning, performance and outcomes help the business management make the timely adjustment for making continuous improvement and maximizing business potential. The key point is to prepare crucial issues, collect quality information and feedback even before the meeting starts, and better to invest the time up front to address concerns and achieve a workable agreement.
In many organizations, the corporate boards spend too much time on compliance or operational issues at the expense of the future. But to facilitate smart meetings and improve the boardroom effectiveness, it’s crucial for their discussions and activities to become more informative, innovative, performance-driven, not just compliance-focused. Make the board agenda reasonable and stay focused. In this sense, feedback is relevant; it needs to be continuous, as close to real time as possible, to improve communication effectiveness, business management agility and organizational resilience.
BoDs initiate governance practices to audit corporate culture, rejuvenate the boardroom culture, and set the tone to reinvent culture of high performance: The culture is the most important, but invisible element to an organization achieving their strategic goals in today's VUCA digital age. Since the culture can undermine strategy, they certainly should be concerned and seek assurance that the culture is aligned with the strategy. Culture is not a mythical "thing" that comes automatically. Culture results from a lot of factors such as the business endeavors, goals of the leaders and their philosophies to reach the goal, their emotions in various scenarios and so on.
Culture is 'established' by those at the top, the corporate board, as well as the top leadership team. Culture and brand are the most important "soft" elements that a company has since they will define how the company interacts with its various stakeholders. The BoDs need to ask themselves: Does the board do enough to reinvent culture? What is the board culture and how does it contribute to the board’s ability to advise management effectively? The board has to pay more attention to the culture, help the business management determine its direction and assure that the culture supports the strategy, the board reporting on culture to shareholders and other stakeholders timely for leading desired change effectively.
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. Insightful BoDs have the advantage of pulling enough resources and pushing the business model of launching change, innovation, and steering their organization forward step-wisely.
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