Executive Access India reposted this
Boards can be great strategic aids to accelerate the growth of a company. Unfortunately, they are still grossly underleveraged with too much attention to compliance and corporate governance. Consequently, too little attention is given on using boards to aid, future proof and grow the business. The winds of change have begun and are bound to accelerate in the future. However, it is very important that sufficient thought is given to the board construct ensuring not only diversity but different functional experience to help organizations grow in today`s BANI world where business fortunes can change overnight. We conducted a survey for Times of India with over 200 board members as respondents. Please see the article as below. Would love to get you thoughts on the same, especially what you think will help boards become efficient. What needs to change that will accelerate this ? Executive Access India The Times Of India
I strongly believe that boards today are much more than just compliance and governance. Strategy and Innovation that includes business adjacencies, organic/inorganic growth, new technologies, digital transformation, people/HR etc. are all part of board discussions and decision making...at least on the few boards I sit on. And yes, I certainly see board constructs in-line with the company's strategic demand, thereby ensuring the board members have the skill sets/experience that are of value, both in the short run and the long term.
Each company should have a cause of existence to serve specific needs of society and customer. That should be captured in the vision. That is followed by Strategy and more important it's efficient execution. It's the Boards responsibility that company is focused on that and while discharging normal duties like governance and routine agenda items they keep company on track to achieve the main business plan of strategy execution.
Given the increasing complexities in the business environment the role of Board Members needs to be much more broad based than just Governance or Compliance. With increasing risks of geo-politics, climate sustainability, trade barriers etc Board members have to assist the Co management in navigating their businesses around these risks to achieve the business goals. Increasingly Indian business owners and senior management are now realising the important role that professional Board members can play in growing and safeguarding their businesses.
In world of fast evolving business ecosystem becoming more in disruptive nature due to multiple factors like geopolitical, fast evolving technology innovations etc demand more from the board members in terms of strategising the future course of action. Data based decisions take the front seat but if blended well with the intuition or gut feeling which is gained after extensive experience would hold the key in taking faster decisions with good accuracy. The bar chart as depicted in the post, highlights various key arears which need more attention from the boards . Apart from others, in my personal opinion ESG also needs much more increased attention as it would hold the key in many respects in times to come. Infact investors are putting more stress on ESG these days. Having said all this, it is a strong balancing act which is needed amongst various key performance parameters as highlighted in the post and are well related to the businesses survival, growth and sustainability both in the short term and the long term. In fact board is a great strategic tool or asset, which any business should use/harness more extensively to get projected results.
Good morning to you Ronesh Puri. Just giving my few thoughts - Value creation is a collaborative journey that unites the board, management, and stakeholders in a shared commitment to long-term success. At the heart of value creation lies a strong and well-articulated strategy. Another crucial aspect of value creation is monitoring and measuring performance. As a board member, i need to ensure that i am an active, committed part of this end-to-end process. As a board member, i also need to personally walk the talk and live up to the governance practices, including transparency, accountability, and ethical decision-making in my personal life. The two, i believe, co-exist. This dichotomy of different co-existences is globally becoming more visible, and needs to be corrected. My role is not just about avoiding risks and ensuring compliance; It is also about challenging management's assumptions. As a board member, how i walk the talk extends beyond the confines of the boardroom. Thank you so much for creating room online to voice one's views.
Insightful observations on board challenges. Key role in strategic growth highlighted brilliantly. Addressing governance versus growth: a timely discussion. Diversity and functional experience: crucial points well made. Times of India survey adds valuable perspective. What innovative approaches do you foresee for evolving board dynamics?
Read the article today and it is indeed insightful. The Boards increasingly can and are playing more than governance and statutory obligation, tick in the box. Besides, learned a new acronym, BANI world 🙂
Very nicely captured ☝️ Whilst the Boards need to evolve to respond to the Business opportunities and challenges, the importance and role of Governance can never be underplayed! Governance remains the very essence of Board’s purpose of existence!
Good to note this change in the board. However the family run business is still tilted towards one side and yet to be evolved to stay neutral
Pertinent deep points Niranjan . Board members have a tough job to show a mirror and help the organisation look at what they are missing out on . Future proofing the organisation and risk mitigation are equally important . Your observations are spot on .