Khwaja's Take on IBM's Data Breach Report, Business Roundtable, Olympics, Google's Antitrust, CEO Survey, Dimon's Tour, Delta's Suit on Crowdstrike !

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1. What Boards Can Learn From Crowdstrike-driven Global IT Outage.

The recent CrowdStrike-driven IT outage impacting Delta Air Lines is a wake-up call for CEOs and Board Directors about the critical need for responsible innovation and business resilience. 

Here is my advice for CEOs and Boards:

✅ Software Supply Chain Risks: Ensure robust QA processes for third-party integrations.

✅ DevSecOps Culture Audits: Make these audits a regular practice to ensure business continuity.

✅ Metrics Oversight: Monitor Site Reliability Engineering and Vulnerability Management.

✅ Management Reporting: Address any flaws in SDLC risks visibility and reporting.

✅ Board Committee Refresh: Establish a technology/innovation and cybersecurity committee.

✅ Dig Deep: Address flaws in management reporting on SDLC risks.

✅ Watch for Red Flags: Vulnerability management teams should not work in silos.

✅ Risk Management:Conduct regular tabletop exercises.Focus on risk scoring, audit compliance, and security control presence.

✅ Reputational Risk: Oversee senior management in managing redundancies effectively.

✅ Quality Assurance: Prioritize good QA practices and oversee cyber-recovery procedures.

Per The Wall Street Journal , Delta Air Lines CEO Ed Bastian highlighted the significant impact on operations due to heavy reliance of Crowdstrike and Microsoft on mission-critical operational stack.

Engage now to fortify your organization's operational resilience.

What steps are you taking to ensure business continuity?

Are your enterprises resilient and prepared?

What steps are you taking to enhance your organization's resilience?

2. BCG Alert on M&A and Khwaja's Take!!

🚀 The Board's Critical Role in M&A Oversight 🚀

In today's fast-paced business environment, the role of the board in M&A oversight is more critical than ever. Balancing short and long-term objectives requires a strategic approach and diverse expertise, especially in technology and cybersecurity.

Khwaja's Advice:

✅ Disruptive Technologies: Invest in cutting-edge tech to gain a competitive edge.

✅ Talent Utilization: Leverage the acquired firm's top talent.

✅ Strategic Discussions: Incorporate AI, Cloud, and ESG into strategy.

✅ M&A Due Diligence: Focus on financial and non-financial metrics like capital structure, cybersecurity, and innovation culture.

✅ Flawless Execution: Understand customers, markets, and regulatory compliance.

✅ Board Diversity: Ensure a diverse board through regular refreshes.

✅ Culture & Accountability: Strong focus on culture and stakeholder needs.Recent Boston Consulting Group (BCG) report (https://shorturl.at/7XMb4) highlight the increasing role of technology in driving value in Post Merger Integration (PMI).

Learn how to excel in M&A oversight for optimal value creation.

What strategies are you implementing for successful M&As?

Share your thoughts below!

3. The Conference Board CEO Survey and Khwaja's Take

The latest Conference Board Measure of CEO Confidence™ in collaboration with The Business Council reveals cautious optimism among US CEOs, with only 30% expecting a recession in the next 12 to 18 months.

Join Steve Odland and guest Dana Peterson, Chief Economist at The Conference Board, here to find out why recession has faded as an immediate fear, whether CEOs plan to reduce headcount, and why they’re especially worried about cyber risks right now

Based on The Conference Board CEO survey it is clear it is a soft landing and no recession. I have seen Tech Spending is increasing while spending on talent is not keeping up with the tech disruption. A tech-savvy board director makes all the difference for product-led growth strategies, capital allocation decisions and talent oversight.

What do you think?

4. The IBM Mainframe – A Strategic Imperative for Boards

Reflecting on Ross Mauri’s quote at The Wall Street Journal (https://shorturl.at/bG9Jf) took me to my memories at IBM Think. In today's rapidly evolving tech landscape, the IBM mainframe remains a powerhouse no board can afford to overlook.

✅ Long Application Lifespan without code changes

✅ High Processing Power, Scalability & Reliability

✅ Advanced Security & Regulatory Compliance

✅ Mainframes host about 70% of the world's data, crucial for AI scalability and value creation.

✅ You can drive revenue and cost savings by integrating modern programming languages like Python, Go, and node.js, new frameworks such as DevOps, and new technologies like integrated chips for AI and pervasive encryption.

Why? Security and regulators love IBM Mainframe’s advanced encryption and zero concentration risks, as well as its sustainability and energy efficiency. 

Best fit for AI with your own data rather than outsourcing your competitive advantage through an API call.

Action: Explore how your organization can leverage mainframes for greater efficiency, operational excellence, cost savings, revenues, and innovation.

5. Trust is the Foundation of Business Resiliency.

CrowdStrike-driven global IT outage and Delta Air Lines lawsuits with Microsoft etc led to my busy weeks and forward-thinking conversations with board members, customers, and executives.

Business Resiliency is an important topic that requires engaging and digging deep into senior management’s ability to mitigate concentration risk, third-party risk, and auto-update strategies.

It requires a board refresh if you are not seeking metrics on critical infrastructure and the robustness of incident response.

What do you think?

6. My Reflections on Conference Board CEO Survey

At the Conference board CEO survey, among risks impacting their industries, CEOs ranked cyber at the top of the list, followed by geopolitical instability, and legal and regulatory uncertainty.

Learn more here from my LinkedIn piece (https://shorturl.at/NvmOf).

7. Geopolitical Risk is the mother of all risks.

I discussed Geoplitical Risk at the recent Nasdaq Board Member Exchange. Boards must focus on the right risks through a holistic lens that impacts core strategy.

🔍 Are you shifting capital investments based on Geopolitical Risk?

🌐 Where are your concentrations from a country risk and cloud risk standpoint?

📊 Are you overseeing risk posture holistically, including supply chain, capital, talent, and R&D?

Balancing talent needs to the local regulatory landscape matters. Global Tech stack oversight, including cloud concentration risk, AI and data governance, are crucial areas where the Innovation/Technology and Cybersecurity Committee can play a vital role.

In my view, the Audit Committee is not the right place to oversee geopolitical risk due to its interdisciplinary impacts. Check out McKinsey & Company’s insights on the importance of segmentation. What measures are your boards taking to elevate Geopolitical Risk Oversight? Share your thoughts below!

8. Severance Protection and Golden Parachutes.

Severance protection and golden parachutes are major challenges Boards face today. Per The Wall Street Journal, Qantas Airways announced it would withhold bonuses totaling $6.1 million from former CEO Alan Joyce. The airline cited damaged reputation and relationships under his watch.

The Compensation Committee's primary role is to ensure incentives do not motivate management to take unnecessary risks that would harm the company's reputation or long-term viability.

What do you think about the Board's decision?

9. Softlanding, No Recession, and What it Means for Boards

On CNBC with Leslie Picker, JPMorganChasee CEO, Jamie Dimon, discussed the probability of a soft landing. He highlighted various headwinds including geopolitics, deficits, elections, and the green economy.

Jamie also shared about tremendous progress his team has made on their AI journey.I believe these are critical board agenda items that no board should ignore.

While Dimon downplayed the Fed rate effects as largely psychological and dismissed fears of stagflation or recession, the impact of these headwinds on company’s strategic direction cannot be understated.

As always Leslie Picker was fabulous with her crisp, compelling, and practical questions.

Are these issues on your board’s radar?

10. Boards Must Elevate Talent Oversight in the Age of AI Disruption!!

According to The Wall Street Journal, AI is transforming India's technology outsourcing business, making it urgent for companies to shift to higher-end services. In my view, board focus on AI is still in its early stages, and human capital oversight isn't receiving the same rigor as financial reporting and strategy.

My advice to CEOs and Board Directors:

🔍 Apply the same rigorous oversight to human capital as you do to financials.

📈 Plan how you will oversee this new technology domain as AI risks and opportunities grow.

Human Capital and Compensation Committees should seek metrics on skills competencies such as business acumen, strategy consulting, EQ, growth mindset, and agility as we scale AI infused Augmentation Use Cases.

How is your board preparing for AI disruption? Share your thoughts!

11. Growth is the #1 CEO priority

Growth is the #1 CEO priority, according to Gartner's CEO Survey.

If you sit on a board overseeing strategy and profitable growth, check out my LinkedIn piece (https://shorturl.at/TOBay).

12. Google loses Antitrust Case

"Google is a monopolist, and it has acted as one to maintain its monopoly," Mehta wrote in his 276-page decision (https://shorturl.at/V3MpW). For CEOs and Board Directors, data privacy, security, and compliance are non-negotiable in the experience economy. With GenAI capital infusion and data being critical to AI, Board's engagement and oversight on robust data governance mechanisms are a must.

Key Actions for Boards:

✅ Understand regulatory landscapes with GC help

✅ Privacy-by-design practices tied to management compensation

✅ Calibrate Risk Appetite: Make strategic data protection decisions based on business needs.

✅ Understand the Threat Landscape: Seek General Counsel help to prioritize risks.

✅ Stay Ahead of Regulations: Monitor the upcoming American Privacy Rights Act and ensure compliance.

✅ Enforce Accountability: Tie senior management compensation to privacy-by-design practices.Your strategic imperative is clear. Prioritize digital trust and stay ahead of the regulatory landscape. 📊

13. Role of Board and their oversight on Government Partnerships

Boards have a vital role in shaping smart regulation and championing the greater good through Board excellence. At the Nasdaq Board Member Exchange, I highlighted how boards must adopt forward-thinking mindsets to engage and oversee senior management's partnerships with governments and university ecosystem. I shared a higher purpose example associated with New York State's Green CHIPS Program to spur jobs and opportunity and foster environmental sustainability.

Per The Wall Street Journal, Europe's climate regulations are drawing funds for energy startups, and top technical universities are supplying AI entrepreneurs. Hiring world-class AI teams in Europe costs 30% less than Silicon Valley.

Here’s my advice to lead Director and Board Chairs:

✅ Continuous Learning Agility: Boards must stay informed about media reports and political discourse on foreign trade relationships.

✅ Strategic Planning: Understanding election cycles can help predict trade tensions and market impacts.

✅ HR as a Board Agenda: Embed geopolitical risk considerations in your talent strategy.

✅ Risk Governance: Oversee a consolidated view of all risks and strengthen governance processes.Boards must act as the navigational compass guiding companies through uncertain times. Foresight is key to resilience!

🌍What steps are you taking to ensure your board is forward-thinking for value creation?

14. Board's Oversight on Market Adaptation and AI Spending

According to The Wall Street Journal, based on the analyst tech calls, they all said the current risk isn't investing too much in AI but rather too little. I've seen this repeatedly. It’s not about huge investments; it’s about the market adoption they drive. Tech firms must focus on opportunities/Use Cases that solve real business problems across industries.

15. Khwaja's Take on Geopolitics

CEO, Board’s Geopolitics Oversight Alert!! Is Tech deglobalization a good thing? 🤔 Fareed Zakaria says global engagement helped America prosper. I agree, especially when considering access to labor, country-based specialization, access to resources, global harmony, and cross-border investment. But what about Tech-deglobalization?

Is de-coupling beneficial for tech?

✅ US trade difficulties started in the 1970s, and globalization is a complex topic. For history buffs, reflect on the 'Hamilton Tariff.'

✅ How do you drive digital acceleration amid evolving AI and data privacy regulations while enhancing near-term profitability?

✅ How does this impact your sustainability strategy and third-party risk management?

✅ What metrics are you overseeing to strengthen privacy strategy?

✅ What type of culture audits should we pursue to future-proof privacy protection and treat it as a competitive advantage?

These are crucial questions for Boards to strengthen digital trust and value creation.

What do you think? 📊

16. Boards play a critical role on Strategic Pivots

Value migrates if you are not nimble. I applaud Facebook's Mark Zuckerberg's strategic pivot on AI.

Learn more here from LinkedIn piece (https://shorturl.at/PGVJi) about the importance of strategic pivots and the critical role the board plays.

17. Business Roundable's Pivotal Role on Inclusive Capitalism

Roundtable! 🎉 Kristen Silverberg, Business Roundtable President and COO, shared some truly compelling insights on Geopolitical Risk, Workforce, Corporate Governance, Immigration, Smart Regulation, and Technology. It was a breath of fresh air.

I had the pleasure of conversing with Ambassador Kristen Silverberg, President & COO at Business Roundtable. Kristen’s diplomatic expertise and intellectual vigor provided timeless wisdom on foreign policy and global economic issues.

The highlight was catching up with fellow Board Directors Jesús Mantas, Stephen Powell, Thomas Stith, NACD.DC, Betty DeVita, ICD.D and Jeannie Diefenderfer, NACD.DC and making new connections with other board directors including Kim Wales, NACD.DC, James Tunkey in our evolving regulatory and technology landscape.

Big shoutout to Byron Loflin, Vanessa Mesics, and Daniela González for inviting me and their leadership on Board Excellence.

The Board Member Exchange Breakfast Roundtable provided a unique forum to discuss the future of board governance, higher purpose, Board Culture, Geopolitics, and cyber resilience.

The Nasdaq Board Member Exchange Breakfast Roundtable offered a unique forum to discuss the future of board governance, higher purpose, Board Culture, Geopolitics, and cyber resilience.

18. Shaping AI Strategy

Boards have a critical role in shaping AI Strategy, beyond just focusing on Gen AI. Per WSJ, Amazon joins Microsoft and Google in blowout capital spending with mixed business results.

🌐 Learn more here from my LinkedIn piece (https://shorturl.at/mJrU2).

19. Talent Rules

Microsoft classified OpenAI as a competitor in AI products. What advice would you offer if you met the lead Director of Microsoft on an elevator?

My advice is -Talent Rules!!

20. The EU AI Act and its implications for Boards

21. Importance of Operating Backbone

I like the importance given to operating backbone by McKinsey & Company here. I counsel Board Chairs, and lead Directors to strengthen strategic oversight.

Board’s strategic oversight must account for a litany of factors—headwinds, tailwinds, customer trends, demographic changes, technological disruptions, and the competitive landscape, to name a few—while staying aligned with the company's values and vision.

You can balance both short and long term objectives only when you treat running the business and changing the business simultaneously with a common operating backbone.Learn more here from my LinkedIn piece (https://shorturl.at/lP2UC).

22. Summer Olympics Alert!!

Summer Olympics Alert!! 1+1 = 3. I shared my insights at Nasdaq Board Member Exchange on the importance of the board in overseeing senior management in shaping regulations by actively engaging with the Government, as value creation is a team sport.

If you want to become a “good to great” company, addressing societal good is always a good business. Businesses must double down their engagement with Government to create value through smart regulations.What are your ambitions for the region?

Check out the answer from Valérie Pécresse.

23. CEO Attributes

LinkedIn News featured my post on attributes you need in a modern CEO for the new tomorrow.

What other CEO attributes would you like to add to my list if you are a lead Director or Board Chair or sit on a board engaged with CEO succession planning?

24. AI Strategy and Boards Role On Capital Allocations

AI Strategy and CEO Alert!! But investors who were once willing to write blank checks to big tech companies that invest in AI have grown more wary of late. More here (https://shorturl.at/p322P).In this case Microsoft is not doing good job in integrating sustainability with the business strategy.

There are plenty of AI use Cases that doesn’t need LLM driven huge compute impacting energy and carbon footprint. Small LLMs and RAG patterns have shown very promising for the hostic value creation.

If you chair a tech committer this is a topic you must dig deep during capital allocation decisions. What do you think?

25. Values and Customer-centricity Always Rules

I applaud Ed Bastian for handling the CrowdStrike-driven crisis by staying true to his values, including a relentless focus on customers even during the crisis. The leaders are tested during the tough times, and I give high marks for Ed’s handling of this situation.

26. My Take on new BOEING CEO

Congratulations to Kelly Ortberg on his appointment as Boeing CEO! I have always said that the new tomorrow requires a technology leader with a blend of technology expertise, industry/domain expertise, high emotional intelligence, and contextual intelligence to lead any crisis. The era of CFO backgrounds for CEO pipeline is over if you need to succeed over the long-term and drive sustained profitable growth.

27. IBM's Data Breach Report

🔥 The wait is over! 🔥 IBM has just released the 2024 Cost of a Data Breach Report. If you’re a Board Director, CEO, CISO, CIO, or CTO overseeing or co-creating cybersecurity strategy and business resilience, you need to check this out (https://shorturl.at/ZT3ro).

Key findings include:

✅ AI/Automation Impact: Cut breach costs by £1.06 million.

✅ Top Attack Vectors: Stolen credentials & phishing represent 27% of UK breaches.

✅ Faster Incident Response: Security AI reduced incident detection and containment response time by 106 days.

💡 Learn more about how these insights can protect your organization and drive cyber resilience. Don't miss out!

28. Boards Skills Gap

What do many well-managed companies have? Lots of climate-related jobs per The Wall Street Journal (https://shorturl.at/YFLRy)?

I have seen a major skills gap on boards when it comes to environmental, social, and governance (ESG) issues. This is becoming more and more of a concern as climate change and other global challenges become more pressing. Learn more here from my LinkedIn piece (https://shorturl.at/ki0BZ).

29. AI and Energy Demands

AI has the potential to increase global emissions by 80%, highlighting the crucial role that boards play in shaping AI strategy and ensuring sustainability for long-term value creation.

If I were to offer advice to an Audit Committee Chair, Tech Committee Chair, or Sustainability Committee Chair on integrating sustainability with business strategy, I would emphasize the importance of aligning AI initiatives with sustainability goals to mitigate environmental impact effectively.

What do you think?

30. Supply Chain Resilience

I applaud the Business Roundtable's recommendations (https://shorturl.at/I9bhL) for improving U.S. supply chain resilience. I would add the concentration risk associated with Big Tech or any single technology vendor to these recommendations.

I have been saying this over the years, including my recommendation to lead directors and board chairs to reduce reliance on a single cloud or single cybersecurity platform provider. It is no different from market concentration risk.Proprietary LLM or closed LLM vs Open Source AI is another hot item no board should ignore.

Last week’s CrowdStrike global IT outage is one of the recent examples.

What do you think?

31. Shad Khan's Bold Vision

I had the privilege of meeting Shahid Khan of Jacksonville Jaguars as he generously donated $5 million to the Museum of Science & History for a new museum project (https://shorturl.at/3kUJM) on the Northbank at the Shipyards of City of Jacksonville.

During my interaction, I realized Shahid Khan is a forward-thinking leader with a relentless focus on long-term and scaling meaningful impact to the local communities.

We need more leaders like him to make purpose real. Watch more about his exciting venture and bold moves in the following link:

32. Board Agendas must include Geopolitics

Anne Applebaum’s new book (https://lnkd.in/eVgCz7VJ) on new breed of autocrats, highlighted on Fareed Zakaria’s GPS, is a must-read for board directors. As geopolitical risks increasingly impact digital sovereignty and AI supremacy, it's crucial for boards to adapt and elevate geopolitical risk oversight.

How can boards effectively oversee global trade tensions?

✅ Refresh board agendas to include supply chain integrity, compliance, and operational risks

✅ Oversee new operating models and third-party risk assessments

✅ Stay informed on foreign trade relationships and election cycles

✅ Embed geopolitical risk in talent strategy

✅ Strengthen governance for a thriving risk cultureIn this global chess game, foresight is critical to resilience.

How is your board adapting to these challenges?

33. Importance of Tech Strategy

Want to make a real difference in your organization's tech strategy and business resilience? I've written a detailed piece on LinkedIn addressing this very issue. Check it out here: https://shorturl.at/8dN3e

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For professional insights into complex issues, join the conversation by tweeting Khwaja at @Khwaja_Shaik or connecting with him on LinkedIn.

ABOUT KHWAJA SHAIK

Khwaja Shaik, a digital expert and cyber-savvy board director, brings over 25 years of global experience in technology, cybersecurity, sustainability, nimble innovation, and fintech. He is a sought-after advisor for CEOs and boards globally, providing invaluable insights at the nexus of technology, cybersecurity, and financial services. Khwaja drives profitable growth through innovation, digital acceleration, and risk management. With a career spanning renowned companies like IBM, Bank of America Merrill Lynch, Al Rostamani Group, and PwC, he is internationally acknowledged as an authority in corporate governance, technology governance, VC/startup incubation, and digital resilience.

Khwaja advises CEOs, Boards, and Startups on carving out Future-Fit Tech strategies aligned with board priorities. But beyond his illustrious career, Khwaja's true calling lies in altruism. He staunchly believes in weaving noble purpose into business strategies, championing a model of multi-stakeholder capitalism. Committed to societal transformation, he strives to leave a profound impact through socially responsible, ethical technology, and privacy-centric practices.

Khwaja is a visionary leader with a proven track record of success in transforming businesses through innovation and digital. He has an innate understanding of how to harness technology to create better customer experiences and future-proof operations.

At Bank of America, he managed risk and infused Fintech and Cloud best practices into the firm’s strategy, saving the company $1.1 billion per year during the 2008 financial crisis. At PwC, he incubated new businesses to grow revenue across multiple economic cycles, reshaping industry and platform operating models— digitizing end-to-end business processes to capture value, and protecting firms from cyberattacks through digital resilience.

Khwaja has a history of leading over $10B in digital business transformations by scaling Agile practices for cost optimization, revenue-generation, and societal transformation imperatives. It includes strategic oversight, risk mitigation, business optimization, digital business models to capture profitable growth, customer lifetime value & competitive advantage to Fortune 500 firms.

Khwaja delivered a modern banking platform and transformed the Omnichannel customer experience through world's largest Contact Center platform, serving 1 billion calls, as part of BofA's M&A (CFC, MBNA, Fleet, etc.) to support the AI-led growth strategy.

Khwaja is one of the most exceptional IBMers appointed, with the rare distinction of IBM Academy of Technology member. Holds many patents serves on IBM’s Invention Board. Khwaja is one of the top 100 leaders elevating corporate purpose, driving AI ethics, privacy, data stewardship, regulatory/compliance and sustainability. He provides the direction of IBM's long-term strategy through ESG and good tech.

Khwaja serves on the Museum of Science & History and University of North Florida boards to promote economic equity, social, diversity, and inclusion for the prosperity of all. He teaches emerging tech, systemic risks, cybersecurity, AI ethics, and privacy-by-design efforts at University of North Florida and Competent Boards.

Khwaja is a frequent speaker on Board Practices, Technology, and Cybersecurity at NACD (National Association of Corporate Directors), Competent Boards, New York University School of Law, American College of Corporate Directors, Boardswell etc.

Khwaja is a Fellow of The Herndon Foundation Board Institute, sponsored by Nasdaq & Atlanta Life. Khwaja is proud to be part of both Ascend Leadership's Pinnacle Aspiring Directors Academy and University of North Carolina at Chapel Hill School of Law's 2023 DDI Board Boot Camp. Khwaja holds an MBA and an Engineering degree. Khwaja lived in India, Middle East, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 24 years with two remarkable boys.

More details on Khwaja’s career and thought leadership activities could be found via Linkedin, Khwajashaik.com or follow him on Twitter @Khwaja_Shaik

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