Bringing Your Governance Board into the Digital Age
The digital age has finally reached the boardroom. The bright red books in the Barnes and Noble window were sending a silent but loud call to action to all board members walking along Fifth Avenue. I asked myself why would corporate directors need a guide to governance? I purchased my copy of Governance in the Digital Age. The quick 156-page read introduced a digital divide among boardroom members dramatically handicapping corporate governance practices. Authors, Brian Stafford, President and CEO of Diligent and Dottie Schindlinger, Diligent’s VP of Thought Leadership, interviewed corporate leaders on what challenges were impeding decision making and what they were doing to meet the demands of modern technology. With collaborative submissions from over 14,000 organizations and 500,000 directors from around the world, the book gives the reader insights on what areas need modern strategies and suggestions for best practices for the digital age.
Embracing Technology
What approaches actually have the potential to help directors govern better in the digital age? Value creation is a first best practice step for governance boards. Assessing where you are and where you need to be. And how are you going to build a roadmap to get there? This means asking questions and delivering change. If your boardroom is stymied by a lack of diversity, ageism and inadequate skill levels for some time. A possible solution is to add more savvy technology members to close the knowledge gap. Perhaps introduce a tech committee for seminars on social media use or board portal use training. Digital pressures to stay current on cybersecurity, artificial intelligence, and blockchain cryptocurrency fosters an attitude of resilience and nimbleness. Be aggressive about introducing new information to management. Start with a friendly open debate, introduce a board behavioral profile, and create measurable targets to reward success.
What is the most coveted skill for governance boards? The top skill needed remains Information Technology (IT).
If governance boards need more directors with more IT knowledge, why are they not hired? Anastassia Lauterbach CEO of 1AU-Ventures pointed out that certain boards are reluctant to move away from their familiar corporate culture. Lauterbach noted that “boards need to recruit people who think differently or have a different area of expertise and need to give them encouragement. This comfort level builds with time and familiarity.” As pressure mounts for directors to quickly arrive at definitive answers, new tools are under development to allow companies. Directors need to consider the frequency of when what and how the board receives critical information as a move towards resilience. This key trait is the heart of every Governance Board. It puts IT in place to ameliorate risk. It seeks to self-educate and improve. It encourages digitized meetings and cultivates a diversity of backgrounds, thoughts and skills.