It’s an important responsibility for BoD to play the management advising role and guide the business forward smoothly.
The new breed of BoDs are able to drive changes and lead via multidimensional intelligence and interdisciplinary approach, to make good decisions that enhance the value creation for the organization coherently.
Oversight of business development: To avoid fast obsolescence and gain long term business advantage, business management needs to have a very clear understanding of organizational strengths and weaknesses, the business development sequence and cycle, explore different paths and take the alternative value creation approach to accelerate performance and unleash business potential.
The BoD’s oversight of business development helps to identify and close capability gaps, recognize resource or talent bottlenecks, understand that business management is multifaceted and takes cross-functional effort for achieving strategic goals, enabling organizations to thrive. Value plays a bigger role in determining which task needs to be addressed first by setting the right priority, or creating a justification case. Thus, BoD’s oversight clarifies the multifaceted value proposition, so the business management can lead forward more effectively and let others follow through smoothly.
Oversight of corporate hard and soft assets of organizations: Business assets are no longer just about physical or hard stuff such as building or devices; it is critical to managing information - the soft business asset extremely. In fact, information is one of the most important business assets, so information management systems play a fundamental role in responding to changes continuously. People are the most invaluable asset in any business. They are not just cost or even resources, but the human capital worth investing in a smart way.
From gap identification to goal setting and measurement, BoD’s oversight of business assets improves business strategic alignment and organizational integration. There is the need to harden the soft or intangible business factors such as leadership, communication, culture, etc, also the demand to “soften the hard business factors” such as business assets, investment metrics, management disciplines by integrating soft science such as anthropology, philosophy and hard science such as engineering, technology, in order to lead change frictionlessly and make business leap effortlessly. The “hard” technology can create such soft touch, to build a people-centric digital organization.
Assessment of performance and conformance: Corporate boards need to perform and conform at the same time, they monitor business performance, as well as keep improving their own performance. Highly effective organizations incorporate conformance into the performance management cycle. Performance without conformance is not sustainable, conformance without performance adds very little value to the firm. BoDs as one of the most critical GRC bodies play a significant role in monitoring performance and enhancing proactive conformance, which is inherent within the value-driven performance.
Effective corporate boards enhance governance disciplines to ensure there are adequate controls in place to operate responsibly in accordance with business principles, incorporating conformance into the performance management cycle to maximize value generation of the company. Keep in mind, performance is not limited to financial performance, but also to the firm's performance in creating value for employees and customers, not only about now but also about the future from long term perspectives.
It’s an important responsibility for BoDs to play the management advising role and guide the business forward smoothly. The BoD’s outlier’s view, interdisciplinary knowledge, and professional competency, allows them to understand business strength & weakness, evaluate the level of business coherence, and synchronization, to improve organizational maturity for the long run.
Oversight of business development: To avoid fast obsolescence and gain long term business advantage, business management needs to have a very clear understanding of organizational strengths and weaknesses, the business development sequence and cycle, explore different paths and take the alternative value creation approach to accelerate performance and unleash business potential.
The BoD’s oversight of business development helps to identify and close capability gaps, recognize resource or talent bottlenecks, understand that business management is multifaceted and takes cross-functional effort for achieving strategic goals, enabling organizations to thrive. Value plays a bigger role in determining which task needs to be addressed first by setting the right priority, or creating a justification case. Thus, BoD’s oversight clarifies the multifaceted value proposition, so the business management can lead forward more effectively and let others follow through smoothly.
Oversight of corporate hard and soft assets of organizations: Business assets are no longer just about physical or hard stuff such as building or devices; it is critical to managing information - the soft business asset extremely. In fact, information is one of the most important business assets, so information management systems play a fundamental role in responding to changes continuously. People are the most invaluable asset in any business. They are not just cost or even resources, but the human capital worth investing in a smart way.
From gap identification to goal setting and measurement, BoD’s oversight of business assets improves business strategic alignment and organizational integration. There is the need to harden the soft or intangible business factors such as leadership, communication, culture, etc, also the demand to “soften the hard business factors” such as business assets, investment metrics, management disciplines by integrating soft science such as anthropology, philosophy and hard science such as engineering, technology, in order to lead change frictionlessly and make business leap effortlessly. The “hard” technology can create such soft touch, to build a people-centric digital organization.
Effective corporate boards enhance governance disciplines to ensure there are adequate controls in place to operate responsibly in accordance with business principles, incorporating conformance into the performance management cycle to maximize value generation of the company. Keep in mind, performance is not limited to financial performance, but also to the firm's performance in creating value for employees and customers, not only about now but also about the future from long term perspectives.
It’s an important responsibility for BoDs to play the management advising role and guide the business forward smoothly. The BoD’s outlier’s view, interdisciplinary knowledge, and professional competency, allows them to understand business strength & weakness, evaluate the level of business coherence, and synchronization, to improve organizational maturity for the long run.
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