15/01/2024
As we all head back to work, Iโm just thinking about whatโs coming up for this year. Over and above the complexity we have all come to expect as normal (economic challenges, geopolitical tension, cybersecurity threats, the challenge and energy transition to name but a few), there are some other less obvious challenges afoot:
ยท RESILIANCE - Things are going to stay messy. Itโs going to take real to keep addressing the strategic implications of continued political, social, global, economic/inflationary and regulatory volatility. Directors will need to be stay close to the data and even closer to management. That said, itโs a fine line between being engaged and micromanaging. Clarity about lines of decision-making remain crucial. Noses in; fingers out.
ยท SUCCESSION & SKILLS - While itโs becoming increasingly obvious thereโs real urgency for board oversight of AI (how to develop and utilize AI ethically?), this demands so there's more digital/IT know-how around the table. Iโm doing some work at the moment, and how to tap into โnewโ core competencies to address future challenges is top of mind. The need for accessing specialized skills in the rapidly changing landscape seems a no brainer if boards are to adapt, innovate and thrive, and Iโm convinced we need individuals around the table with and, particularly, backgrounds to urge a more forward-thinking board.
ยท ETHICS & ACCOUNTABILITY - With the plummeting reputations experienced by Qantas, Optus and others last year, thereโs a growing fatigue and intolerance by stakeholders of any lack of by CEOs and boards. Notwithstanding the complexity of ethical issues impacting a boards decision making, the responsibility for oversight of ethical behavior across the organisation falls squarely on the board. And as the ultimate guardians of financial, human and reputational capital, boards need to consciously check for any reactive or defensive approaches to . Then set the bar higher and replace with managing competing values, compromises/ trade-offs, information gaps and grey areas with more probing and mindful reinforcement of ethical conduct as a core value and part of culture.
I look forward to engaging with my board colleagues around these and other issues, and to bumping into many of you out there.