The world has changed — and boards of directors must change too.
Buying patterns, travel habits, consumer spending, ways of working, environmental concerns, war, recession, you name it – the world is unrecognisable from just a few short years ago.
If you want to be the kind of board member who makes a difference, you have to be aware of the trends shaping the way boards think.
The seven trends shaping the way boards think
According to EY, the key challenges facing boards today will shape the trends of tomorrow. The main challenges facing boards across the world are:
- Regulatory and legal demands
- Outdated and manual modus operandi (digital transformation)
- Technology and skills gaps
- Competing stakeholder and ESG pressures
- Shareholder activism
- Rising geopolitical tensions and war affecting supply chains
EY says there are “clear links between today’s challenges and the trends creating tomorrow’s conditions for boards”.
Those that act now to rethink their operating model can ease pressures and get ahead of change. Critical questions for directors can help kickstart the process:
- What will we do in the future to assess and demonstrate our impact on delivering long-term value to our organisations?
- Is the organisation likely to undergo more transformations in the future? If so, how will the board transform itself to align itself with the new operating model? How will the board plan for and oversee the new requirements for transformational governance?
- How do we plan to respond to the growing pace of change and ambiguity? If not, how do we resolve this?
- Is there a plan to implement the changes we’ll need to our governance operating model and skills over the next ten years and beyond?