Strategic Priorities for Boardroom Governance

The Death of "Nose In, Fingers Out" 💀 **28% of management teams go defensive when boards engage.** That's not governance—that's a competitive liability. My reflections on NACD (National Association of Corporate Directors)’s BRC Report "Culture as the Foundation: Building a High-Performance Board"* After years in C-suite and boardrooms overseeing technology, cybersecurity and culture transformations, I've learned this: **The old "nose in, fingers out" model isn't just outdated—it's dangerous.** ## The New Reality ⚡ Today's challenges don't wait for quarterly meetings: - AI disrupting entire industries overnight - Supply chains collapsing in real-time - Talent wars determining market winners **Management teams focused on execution often miss these strategic inflection points. **Boards that stay passive watch competitors pull ahead. ## What Winning Boards Do Differently 🎯 **Create #psychological #safety.** When management shares bad news early, boards can act. When they hide it, companies die. **Ask the hard tech questions:** - Are we building moats or just buying software? - What happens when our core technology becomes commoditized? - How do we balance AI innovation with existential risk? **Treat #culture as #strategy.** The best talent chooses companies where boards think beyond compliance theater. ## My Approach 🚀 I don't wait for problems to surface in board books. I build relationships across the organization. I ask uncomfortable questions. I challenge assumptions—including my own. **The NACD's BRC Report on high-performance boards makes it clear:** The boards winning the long game aren't playing defense. They're shaping the #future. --- **Question for fellow directors:** What's the most valuable strategic insight you've gained by going beyond traditional board boundaries? #KSgems #KhwajasTake #CIO #CTO #CISO #CFO #BoardLeadership #TechnologyGovernance #CEO #StrategicOversight #NACD #NACDBRCReport #CultureFoundation #CompetitiveAdvantage JUST Capital CECP Business Roundtable

The board rooms we advise (both public and private, both mid-market and large cap) are facing challenges like never before.  NACD (National Association of Corporate Directors)’s summit this year summed it up nicely on some of these challenges: * Uncertainty in the geopolitical and economic environments * Emergence of mass adoption of artificial intelligence * Increased cybersecurity risks * Continual changes in the workforce  * Israel/Gaza conflict, Russia/Ukraine war, tensions with China (especially over Taiwan) Recommendations on navigating these dhallenges: 1. Understand the Risks Facing Your Company  “You need to prioritize your filter. You need to not focus on the extraneous, you need to understand which of those geopolitical tensions actually have meaningful impact for you…. In terms of ongoing monitoring, laser focus on which are the pieces that are going to affect your company, your sector, your country exposures, your regulatory environment.” 2. Technology and Cyber Watch and consider the impacts of artificial intelligence, autonomous technologies, the Internet of Things, the metaverse, quantum computing, blockchain and digital currencies, synthetic biology, and cognitive infrastructure. 3. Company Reputation Trust can also be a target, just like information systems, and there are entities out there that want you to diminish trust in our institutions. Face the risks head on, and don’t ignore them. 4. Continuous Innovation “To be effective today, directors need the courage to embrace change—fully. This means learning and building new skills continually. It means staying on top of trends and new innovations.” “You are going to make very difficult decisions that impact all the stakeholders. The more open and transparent you are about where you are taking the company and why, it just goes a very long way in these types of transformations.” Not only should boards be innovative with their company’s vision and operations, but they should also be innovative regarding how the board itself operates. There has been a shift away from “show and tell” slide decks from management to the board toward “ask sessions,” where the board engages more—and more deeply—on certain strategic issues. To guide innovation, board members—especially those with subject-matter expertise—may wish or need to interact with employees below the C-suite. 5. Improving Company and Board Culture Lessons of improving corporate culture can also be applied to boards. At the board level, directors also need to build their culture to better govern in this age of permacrisis. “We ask our management for all of that—succession planning, hiring, performance review, DEI, inclusion, employee surveys, all that. But do we do that for ourselves?” Be well. Winston & Strawn LLP

It's interesting to read board chairs now spend 40% more time on strategic decisions than they did five years ago. Recent Korn Ferry research confirms what I've witnessed and represents the most significant governance evolution in decades. The days of passive governance are over. #AI disruption, geopolitical volatility, and activist shareholders demand boards that pivot in real time. The traditional quarterly oversight model is dying fast. Today's most effective chairs are strategic partners and real-time decision makers. With 85% of 2024 CEOs being first-time leaders and 75% of directors citing urgent needs for innovation, the transformation is accelerating. This aligns with NACD (National Association of Corporate Directors)'s 2024 Blue Ribbon Commission calling for boards to "strengthen oversight, deepen insight and develop foresight." As I share experiences with peers, chairs and boards seem to be increasingly orchestrating "creative friction" by deliberately challenging groupthink through constructive tension. They're building "T-shaped" expertise with directors who have deep specialization while maintaining strategic perspective across the entire business. Most importantly, these chairs create cultures where directors feel safe to speak up with contrarian views. As one recently told me, "This is a full-on, real-time job." What's the biggest strategic challenge you tackled this quarter? https://lnkd.in/eRMkgA-F #BoardGovernance #Leadership #CEO #Strategy #CorporateGovernance

As I progress through my board certificate program, the 2024 NACD Governance Outlook report provides invaluable guidance for navigating the challenges board members face this year. Here are the top trends that will significantly impact boardroom discussions and decision-making:   1. Economic Uncertainty: While a potential "soft landing" is anticipated by over 50% of directors, the threat of recession remains a significant concern. Boards need to be prepared for various economic scenarios and ensure their companies are financially resilient. 2. Regulatory Tightrope Walk: The expanding regulatory landscape, particularly around climate risk and cybersecurity, is a growing concern for boards. Staying informed and proactively addressing these evolving regulations is crucial for effective compliance and risk management. 3. Balancing Innovation and Security: The rapid pace of technological change presents both exciting opportunities and substantial risks. Boards need to navigate the potential of AI and other emerging technologies while mitigating cybersecurity threats to protect sensitive data and infrastructure. 4. Continuous Strategy: The New Normal: Traditional long-term planning cycles are giving way to a more agile and continuous approach to strategy. Boards need to adapt their oversight practices to ensure effective decision-making in this dynamic environment, focusing on both strategy development and execution. 5. Geopolitical Volatility: A Constant Threat: Ongoing conflicts and national elections pose significant risks, impacting over 30% of directors. Boards need to be prepared for potential disruptions and adapt their strategies accordingly, ensuring business continuity and resilience. 6. Climate Change: A Pressing Issue: The impact of climate change on supply chains is becoming increasingly evident, with over 20% of directors anticipating disruptions. Boards must not only address these immediate concerns but also prepare for the growing pressure around climate-related disclosures, demonstrating environmental responsibility and stakeholder engagement.   By understanding these top challenges, boards can proactively address them, make informed decisions, and ensure the long-term success of their organizations in 2024. Read the full article here: https://lnkd.in/ecDgCvhM #boardtrends #businessinsights #leadership #board