BOARDS OF THE FUTURE

The evolving business landscape On March 11, 2020, the World Health Organization (WHO) characterized COVID-19 as a pandemic, pointing to over 3 million cases and 207,973 deaths in 213 countries and territories . The COVID-19 pandemic caused global economic devastation, triggering unprecedented disruption to businesses worldwide. Boards and executives searched for answers and tried to adapt and innovate as much as possible. In addition, the ongoing megatrend of digitalization continued to affect companies’ operations significantly. These factors plunged many company directors into situations that most have never faced before and, they had to continue to lead. I cannot help but think that the best thing for boards to do in a crisis is to ensure that they are looking in all the relevant directions and making the right decision for themselves, the company, and the stakeholders. Directors’ collective wisdom, insights, experience, and oversight are essential during a crisis or any change for that matter. Boards must seize the opportunity to provide critical guidance and support to the company, and they need to be purposeful in the directions they focus on. In the heat of the pandemic, I published a two-part article on LinkedIn titled, “COVID-19: looking in the right directions for the right reasons.” I based the writing on my proprietary ©Five-Way-Directional Model. The article encouraged leaders to turn their eyes away from the catastrophic occurrences and purposefully look in the five specific directions. Doing this will enable them to take particular actions to survive the crisis and stay strong post-crisis. The business community positively received the ©Five-Way-Directional Model as a leadership tool. Board leadership directions In the business context, the purpose of the ©Five-Way-Directional Model is to help directors focus their attention and articulate the concept of leadership in order to be effective leaders in the short, medium, and long term. The model requires directors to look intentionally in the right direction, learn from what they see, so that they can lead effectively, and consequently leap exponentially. Each director and the entire board need to, 1. Look forward strategically, envisioning future business goals and gauging the necessary approaches to achieve the goals. 2. Look backward retrospectively, contemplating past experiences and lessons 3. Look inward reflectively, perform a self-directed assessment, and take specific actions based on the assessment outcome. 4. Look outward, collaboratively, becoming stakeholder-centric. 5. Look upward soberly and discharging their responsibility ethically, enabling the company to be a good corporate citizen, in words and deeds. Paying attention to these leadership directions allows the board to have a 360 degrees view of the company, its stakeholders, and the business landscape. Having a well-rounded view helps the board be effective and efficient in executing its responsibilities over time. My vision for this book I have studied boards in the last twenty-five years and worked with various boards and board committees as an advisor, assessor, and consultant. I have also been privileged to train directors and senior executives globally as a certified IFC trainer on the Board Leadership Program, including training trainers. I have developed curricula for board training and general corporate governance programs for senior executives and led initiatives to establish corporate governance codes and good practices. Suffice it to say that I have seen the good, the bad, and the ugly regarding board leadership and effectiveness. Today, I harness my wealth of experience to assist boards in professionalizing their practices to deliver more on their duties and responsibilities. The target group for this book is predominantly executive and non-executive directors in large and midsize companies. They are especially in need of frameworks and guidelines that help them make sense of often unstructured, hectic, contradictory, and even threatening board and business dynamics. My interactions with many companies and their boards show that the scope of the board’s role is ever increasing as the corporate marketplace evolves and will continue to evolve in the future. This book provides boards with the guidance, tools, and roadmap to look purposefully, lead effectively and leap exponentially, thereby achieving sustainable business success. Chapter one presents the basics about boards of directors. Most of what boards should do to be more effective are addressed by the ©Five-Way-Directional Model described in detail in chapters two to six. I included some of the topical issues facing boards today, such as dealing with crisis and digitalization, in chapters seven and eight, respectively. In chapter nine, the concept, signs, and consequences of dysfunctional boards are discussed. Every chapter ends with Quick checks: questions for boards and executives. I included these questions to prompt readers to reflect on the concepts described in the chapter and reinforce the lessons. This book is arranged to help readers pick and choose (buffet style) what areas they want to focus on and enable them to surf through at their own pace. Whatever reading approach or style you adopt, I hope you take your board performance to the next level using the ideas offered. You may also use the book as a group workbook or checklist to drive group action toward greater board effectiveness. My ©Five-Way-Directional Model is an excellent tool for current and aspiring board members. It will help them increase their leadership effectiveness and improve their skills and behaviors in leadership competency – specific to their individual needs and the needs of their current or aspired-to positions.