admin

Sustainability is the number one topic on which investors want to engage the board of directors during shareholder meetings. Investors are the most powerful stakeholders. When they want priority to be given to ESG (environment, social, and governance), should not the corporate board have members who have at least some form of expertise in ESG? Unfortunately, about 70% of board directors in a BCG-INSEAD Survey said their board was ineffective at integrating sustainability into governance and strategy building. Demands for sustainability coming not only from investors, but also from consumers, supply chain partners, government regulators, and employees are increasing year by year. It is only logical to have sustainability experts sitting on the board of directors of a company.

Rising importance of sustainability

A decade ago, a company focusing on sustainability would have a competitive marketing edge, but today it is more than that. It has become imperative for all companies to integrate ESG due to increasing demand by all stakeholders. Younger generations of consumers, especially millennials and Gen Z, are increasingly particular on consuming sustainable products, with 73% of Gen Z consumers saying they are even willing to pay more for them. Gen Z are also particular on working for companies adhering to sustainability: a Deloitte survey shows that 49% of Gen Z had made career choices based on personal ethics.

Many governments have become stricter after the Paris Climate Agreement, with many setting legally binding net zero emissions targets. The EU’s taxonomy, for example, will force change in companies operating not only in the EU but also in other countries around the world that have businesses in or trade with the EU. When making investment decisions, 85% of investors in 2020 looked at ESG factors. Sustainability is also about increasing financial returns as companies with an inclusive culture show a 22% increase in productivity and a 27% higher profitability.

Why sustainability experts are essential to corporate boards

Boards lack knowledge on ESG factors –Only 25% of board directors say boards understand ESG risks, which is disturbing when the world is shifting heavily towards sustainability. This year, the board directors of the oil giant Shell were sued for failing to prepare for a net-zero future. With so much on the line, the board needs to have the expertise on ESG. Unfortunately, in an INSEAD survey, only 47% of board directors felt that they have the required ESG expertise and competence to exercise board oversight on execution. Even having an ESG expert at the C-suite as a chief sustainability officer is not enough as ESG requires board-level attention and authority.

Fulfilling stakeholder demand – The calls for ESG have become louder and more proactive, fuelling stakeholder demand. Apple’s 2022 shareholder meeting saw Apple giving in to pressure by shareholders to do a civil rights audit. The world’s largest asset manager Blackrock backing climate activists to join the ExxonMobil board last year was another clear sign of the need for sustainability as a strategy at the highest decision-making authority in a business, which is the board. The voice for prioritising ESG also comes from supply chain partners, regulators, employees, and consumers. Not having an expert on the board and relying on the C-suite or outside consultants is clearly not enough in an evolving world demanding change on the environmental, social, and governance fronts.

Accountability requirements – Recent regulations by the US Securities and Exchange Commission regarding ESG information shows that there will be a need for aligning financial statements with ESG disclosures. At least one ESG expert at the board will need to be up to date with present and future regulations to oversee management’s fulfilment of compliance needs. Also, independent ESG auditors giving assurance is likely to increase with many standards converging under the International Sustainability Standards Board through which companies are looking to guide their policies.

Building strategy around sustainability – Like digital transformation, sustainability is embedded into all parts of an organisation. To stay relevant, the board needs to integrate sustainability into the company’s overall strategy. A report shows that 81% of board members prioritise strategic and operational ESG integration. To make long-term investments and strategic partnerships, a strategy is needed. More experts can shift the focus of the board towards integrating ESG into strategic planning and execution.

By Talal Rafi

Notes:

This blog post represents the views of its author(s), not the position of the European Commission, LSE Business Review, or the London School of Economics.
Featured image by Nastuh Abootalebi on Unsplash
When you leave a comment, you’re agreeing to our Comment Policy.

Author:Bill Hayes

Support the board by providing feedback and sharpening your listening skills.

The topic of becoming and remaining an effective director would seem to lend itself to a degree of selfishness.

“How do you develop yourself so that you can effectively serve on a board of directors?”

“How do you keep up with developments in the field so that you can continue to be of value to your company?”

However, being a proficient director is not always about how you prepare for or conduct yourself in the boardroom. Often, it can involve how you work to elevate other directors so that the boardroom unit can better serve the company.

Michael Montelongo, independent board director for Civeo Corporation and Conduent Inc., believes a high-performing board is more than a collection of high performers. It’s a cohesive group of servant leadership practitioners who feel they’re part of something larger than themselves, and communicate, collaborate and innovate as a team to make the organization better than they found it.

“Making that team chemistry work requires continuous individual and mutual accountability,” says Montelongo, who served as a commissioned officer in the United States Army and, later, as a senior Air Force official before embarking on a corporate career. “It is so important to give feedback, because in a culture defined by mutual trust and respect, your peers expect and appreciate it.”

Sanjai Bhagat, an independent board member for ProLink Solutions and Provost Professor of Finance at the University of Colorado Boulder, believes that the same level of frankness must be brought to the board’s relationship with the CEO. He relayed an anecdote from his time serving on the board of a company thriving in the digital marketing space. When the internet began to explode in the early 2000s, the company’s CEO thought it was time to invest in the World Wide Web. Bhagat was not convinced.

“I told the CEO, ‘You know something about digital marketing. What do you know about the Internet?’” says Bhagat. “All the other board members were saying, ‘It’s time to get into the Internet.’ I said, ‘There are a lot of things we can get involved in, but what competitive advantage do we have?’”

The board decided to go forward with investing in several internet companies, but within 12 to 18 months all had gone belly-up and the directors who had supported the investments had left the board. Meanwhile, during a trip around the golf links, Bhagat discovered the benefits of providing direct, authoritative counsel to the CEO.

“The CEO said, ‘Remember the meeting we had two years ago? You’re the only guy who was saying not to make those investments,’” says Bhagat. “‘And now you’re the only one I’m still playing golf with.’”

On one of his boards, Mike Airheart, a director for HUB Corporation and an advisory board member for Quartix, has received an interesting lesson in what it takes to be an effective leader: “Shut up and listen.”

Airheart is the only white male on the board of a small, minority-owned manufacturing company. This has taught him the value of learning from other people’s perspectives and experiences.

“You have the same trust-building issues you would in any situation, regardless of race, color or gender,” says Airheart. “But I’ve had to listen more and be a bit more aware of people coming from different backgrounds. It’s been a real learning experience. I’ve grown from the situation.”

While Airheart is in the minority on his board, he is not in fact from an underrepresented community. There is no doubt board members from underrepresented communities can struggle on boards because their perspective is not fully taken into account. Montelongo believes minority board members who are struggling to adjust to their boards must maintain the confidence that drove them to be recruited for the board seat in the first place.

“Don’t ever feel like you don’t belong. You are there because your insight, expertise and judgment are critical to your team’s success,” says Montelongo. “Listen, learn, grow and serve. I think if you apply that, you’re going to make a great first impression, and you’re going to be a valuable contributor to your organization.”

Author: Rebecca Bosl

Ever thought about becoming a member of a board?

Experienced C-suite leaders will often seek out board positions to expand their horizons, tackle new challenges and increase their value. Serving on a board is often a prestigious position and provides evidence of thought leadership and industry knowledge. As a bonus, many board members get paid for serving.

Finding a board to serve on is a journey and doesn’t often happen quickly. While some opportunities are posted, many are discovered through a person’s personal or professional network. While conducting a search for a board position might seem daunting and unfamiliar, in reality, landing a board position utilizes similar steps to landing a job.

Reviewing The Job Description

Job descriptions for board of directors’ seats vary. They often include some combination of the following skills:

• Related industry experience

• Strategic planning and strategy development

• Leadership

• Collaboration

• Financial expertise

• Ability to gain buy-in and consensus

• Problem-solving

• Fundraising

• Mergers and acquisitions

• Business transformation

• Operations excellence

• Turnaround expertise

Obviously, one person is not going to have all these skills. But you will want to highlight the skills that you do have by listing them in your competencies section and briefly describing your experience in the overview or summary section.

Writing A Board Of Directors Resume

Writing a resume for a board of directors position is similar to writing a regular resume. A board resume is typically one page in length, but it can be longer if needed to convey the candidate’s value.

As a first step, consider your audience. Those reading the resume are typically the nominating/governance chair of a board, and a recruiter might have the first pass at your resume.

Next, you want to view the job description to identify what qualifications the board is looking for in this position. You want to highlight your education, experience and key qualifications that match the position.

Here are some best practices you can follow for writing your board of directors resume:

• Title: Include the title of the board position you’re seeking and not an objective or “seeking” statement.

• Branding statement: Add a one-line branding statement at the top that captures the main value you bring as a board candidate (one to two sentences should do the trick).

• Summary/overview section: Highlight the main skills you bring to the role and the types of board roles you can fulfill. Be sure to mention other leadership roles, international experience and skills that assist in overall organizational leadership.

• Education and credentials: Highlight degrees and certifications that are relevant to the position.

• Professional experience: Cover each job on one line, noting title, company, city and years. As an option, add in a brief description of each company, noting type (public, private, nonprofit), industry and revenue (if applicable and if not confidential).

• Key qualifications: Only include competencies that are related to the position.

• Contact information: Include name, city and state, phone, email and LinkedIn profile URL.

• Directorships: Note any other board leadership positions including committee roles and positions including director or chair.

• Other items: Include relevant memberships, affiliations and awards.

• Activities: Add community service or volunteer positions.

• Photos: Leave the photos for LinkedIn and your executive biography. Resumes and board resumes should not include a photo.

Uncovering Available Board Of Director Positions

Finding board positions is like finding job openings in a regular job search. You’ll want to use multiple approaches to finding your board seat, just as you would in a job search.

First, you can directly reach out to organizations as you would in a targeted company search when looking for a job. You will also want to engage your network—as with a normal job search, your network may be the very best source of open board positions. Get on the radar of executive recruiters; sometimes they hear of board seats and may also recruit for the company.

You can also raise your profile as a subject matter expert by being involved in industry associations, speaking at conferences and posting thought leadership articles.

Several niche websites (listed below) assist with providing education and by posting board positions:

National Association of Corporate Directors

• Mission: Empower directors and transform boards to be future-ready.

• Provides NACD Directorship Certification to ensure qualification to serve in a director role and demonstrate commitment to staying up to date on current topics in corporate governance.

• Includes prospective director registry. This allows a board position seeker to create a profile that can be viewed by boards seeking new directors.

Private Directors Association

• Dedicated to improving private companies’ growth and sustainability; teaches board formation and governance; enhances private company value.

• Advocate for the value of diverse and inclusive boards.

• Posting service to help private companies gain access to qualified candidates through PDA’s nationwide membership for their fiduciary or advisory board roles.

Take the next step in seeking your board of directors position. Start looking for positions and create a tailored board of directors resume to target these roles. While the concept of seeking board of directors roles might feel daunting, remember it is similar to looking for a regular job.

Boardsi

Boardsi charges a membership fee to users. It is a modern recruiting company providing executives with board of advisor/director positions and provides companies with top executive talent.

In summary, pursuing board of directors positions can be an exciting new avenue for executives wanting to leverage their experience in helping other organizations achieve their goals. Create a tailored board resume, reach out to your network, gain some credentials and check specialized job boards. You’ll be well on your way to an exciting new career adventure.

If you’re a private company owner or shareholder, you may find yourself asking: How do I find highly qualified individuals to join my board? When a board seat is empty and needs to be filled, keep these three strategies in mind

Be Selective

Quality over quantity is key. It’s not just about filling all the seats at the table, but attracting people who can actually get the job done. Serving on a board is rewarding but time-consuming, and there is no room for passive membership when it comes to strategic decision making. Maybe you have interest from someone who intends to serve on as many boards as possible, something I like to call “overboarding.” No one benefits from filling a table with talking heads when a smaller, yet more productive team is what may truly be necessary to propel the corporation forward.

Ask yourself these questions:

Does my board simply fill blank space on the candidate’s resume?
Is this candidate guilty of being spread too thin?
Does this candidate add a key skill set or perspective to our team?

Diversify

It’s sad but true: Women and minorities are largely absent from corporate boards. Lack of diversity in the boardroom is a significant problem and affects us all in more ways than we realize. In fact, decisions made by boards of directors can impact you, your community, and the country. A diversified board ensures a variety of perspective that can come only from people with different backgrounds and experiences. It promotes a variety of viewpoints when it comes to leadership tactics, problem solving, and curating unique and thoughtful perspective on the organization as a whole. A board should mirror the company it governs, including its employees and customers. Lack of diversity is reason enough for boards to reassess their structure.

In fact, a report entitled Why Diversity Matters by McKinsey & Company found that companies in the top quarter for ethnic and racial diversity are 35% more likely to see financial returns above their national industry median. Interestingly enough, those companies in the bottom quarter for gender, race, and ethnic diversity are less likely to deliver above-average financial returns than the average companies in their national industry median.

From a gender perspective, a Catalyst report entitled The Bottom Line: Corporate Performance and Women’s Representation on Boards found that on average, companies with the highest percentage of female board directors outperformed those with the least by 53% for return on equity, by 42% for return on sales, and by 66% for return on invested capital. The writing is on the wall — diversity on boards is good for business.

Network

So how do you find qualified and diverse candidates? Often, it’s about whom you know, but what about those you didn’t realize you knew? Simply put, networking today is at your fingertips 24/7 thanks to social media, apps, and other networking tools. Online networking helps expand your network and serves as a helpful complement to traditional in-person networking.

But let’s not fully discount good old traditional networking. Face-to-face connections at events, conferences, and social gatherings can present a world of opportunity you may have never known existed. Opening up lines of communication to a second- or even third-degree connection could lead to an excellent fit for the board position you are looking to fill. New ways of networking enable us to step out of our comfort zones and create meaningful partnerships that take our organization to the next level.

Effective recruiting for your organization’s board is dependent on selectivity, diversity, and networking. The responsibility of the board member is to try to make a difference while hopefully gaining professional and personal satisfaction in the process. If there is ever an opportunity to be selective, assembling a winning board is it.

Artificial Intelligence (AI) and machine learning have proven beneficial to businesses across several industries. Artificial intelligence is the ability of computer-controlled robots or digital computers to perform tasks commonly associated with intelligent beings. Machine learning (ML) is a subset of artificial intelligence (AI) that concentrates on building systems that improve performance based on behavioural patterns and data (Oracle, 2022).

The ability of AI to rationalize and take the best possible actions in the direction of a desired goal or expected result(s) is its ideal feature. Artificial intelligence includes expert systems, speech recognition, natural language processing (NLP) and machine vision.

Artificial Intelligence and its Business Process Effects

A report by SEMRush (2021) predicted that the surge of AI usage by businesses would create about $2.9 trillion of business value and over 6.2 billion hours of workers’ productivity, with a high impact of enhancing the overall competence of human workers by 2025. This implies that despite a reduction in the number of the total workforce due to AI, the newer jobs that will be created will produce more wealth for businesses and economies that adapt to it. By deploying AI technology, you can position your processes to:

Avoid mistakes prone to human errors
Grow expertise through reliance on very accurate analysis
increase productivity and operational efficiency
Increase revenue by identifying and maximising opportunities
Make faster business decisions based on cognitive tools
Save time and money by automating and optimizing routine processes
Predict customer preferences and offer more personalized options

Artificial Intelligence as a Corporate Advantage

AI is gradually changing the traditional approach to business management. AI and machine learning have substantially helped businesses speed up decision-making. It has helped to mitigate risks, provide better information security, and enabled businesses to offer customised services to their consumers.

Also, AI is distinctively capable of analyzing massive amounts of data for cyber security purposes, as well as more precise, efficient, and effective risk management. Major benefits of applying artificial intelligence to corporate institutions include:

Fraud Detection

Financial institutions like banks and fintech firms, would usually need complex and sophisticated analysis processes to detect potential fraud. Using humans for this task is quite a painstaking task with a very high possibility of errors, which may in turn be very substantial in the chain of effects. As a result, machine technologies have proven to be the best for such rigorous tasks.

Threat Analysis and Management

AI technologies are capable of analyzing vast amounts of data and user details from several sources. This allows for real-time prediction models to be created, enabling security teams and risk management experts to promptly anticipate and combat imminent threats.

Furthermore, these tools can be used to develop more improved systems that give early warning signals whilst ensuring that the business runs continuously and smoothly without interruptions due to threats.

Data Classification

At the core of AI proficiency is the handling of data, big or small, in a very fast and efficient manner. This is one of the reasons why there are no limits to the businesses that can use AI. These technologies are very good at processing and classifying data based on business patterns and categories. In addition, they can monitor and protect access, thereby ensuring data security.

Locking into the Future with AI

As technology evolves and digitalization gains relevance in different industries, the adaptation of businesses to AI is imperative to remain competitive, relevant and efficient. AI is not just a perk, but a necessity.

While AI tools have taken the place of manual functions and human duties, businesses should strive to adapt rapidly to new ideas. Even though business goals are of strategic focus, an open mindset should be maintained towards corporate growth and likely areas for skilled talent should be gradually enabled towards the overall adoption of artificial intelligence.

References:

https://www.semrush.com/blog/artificial-intelligence-stats/#header3

https://www.oracle.com/ng/artificial-intelligence/machine-learning/what-is-machine-learning/

Author: Jeff Middlesworth CEO, Boardable

Today, the board of directors is responsible for appointing tech-savvy members and protecting the organization from risk. It’s no easy task.

In an era of rapid innovation, organizations and associations are vulnerable to more avenues for cybersecurity threats than ever. The boardroom is no exception. Jeff Middlesworth, CEO of Boardable, explains why an organization’s governing body must now rely on virtual meetings and document exchanges to enhance board management.

Since data breaches increased by 15.1% in 2021 compared to the previous year, mitigating cybersecurity risks is more critical than ever. Cybersecurity worries have only grown since Russia invaded Ukraine. More than half of companies reported cybersecurity as the most impacted part of their business since the beginning of the conflict.

Today, the board of directors is responsible for appointing tech-savvy members and protecting the organization from risk. It’s no easy task. Boards must:

Establish digital governance committees
Understand which security features to look for in a tech stack
Educate themselves with varying levels of technological know-how
Implement approaches that combine policy and technology
Leverage a fully secure virtual meeting platform

How Cybersecurity Flaws Affect Your Business

Cybersecurity flaws derive from competitors, foreign powers, hostile hackers and lack of security configuration. Yet as quickly as we develop new technologies to prevent hacking, cybercriminals find ways to exploit them via phishing, malware and ransomware attacks to gain access to sensitive, valuable data.

These threats increase a company’s odds of losing:

Business plans
Customer and employee data
Financial records
Intellectual property
Money
Product ideas

It takes an average of 287 days for businesses to detect a data breach. Companies should consider these threats and work with their board to develop defense plans.

How Boards Can Help Enhance Cybersecurity

While cybersecurity threats continue growing, so do effective solutions to prevent attacks. Boards can no longer sit by the wayside and let IT handle the brunt of the work. Maintaining cybersecurity is not just a technical problem but also an organizational issue. With the power to give companies the tools and guidance they need to prevent cyber risks, boards are now the first line of defense against online threats.

Mitigating cybersecurity risks now starts with board proactivity.

1. Digital governance committees

Establishing digital governance committees increases your company’s accountability and ultimately improves decision-making regarding maintaining cybersecurity. Digital governance committees must include individuals who understand the complexities of cyber risks and how to address them. Once boards recruit these digitally-savvy committee members, they should dig into the specifics of cybersecurity risks and — if necessary — how to manage them.

For example, the committee should prepare to answer the following questions:

What does a data breach look like?
What should we do in the event of a data breach?
What steps need to be taken to build cybersecurity?

Holistically, your digital governance committee should be able to distinguish outside threats and how to address them.

2. Security features

It has become critical for boards to understand their company tech stack’s security features. With malware attacks increasing 358%, ransomware attacks increasing 435% and phishing attacks accounting for over 80% of security incidents, companies must prioritize effective cybersecurity technology, processes and protocols.

Perimeter security technology — a shield for your business — includes web application firewalls, spam filtering, content filtering and antivirus software. Authentication tools also keep unwanted guests from snooping on your business data. Multifactor authentication requires a secondary method or device to authenticate users. Other security measures, such as password management, need employees to update their passwords consistently.

Finally, boards must evangelize and encourage companies to implement backup and disaster recovery tech. This technology allows businesses to retrieve lost information compromised by data breaches.

3. Educated board members

Adding just one board member with cybersecurity knowledge helps colleagues disseminate crucial information about prevention and risk management.

During each meeting, boards should also allocate time to discuss current cybersecurity risks and preventative strategies. By dedicating time to discuss risks, board members have the opportunity to raise questions and carve out their role in helping address cybersecurity threats.

Lastly, companies should include boards in all cybersecurity training programs. Plenty of training programs exist designed to increase cybersecurity literacy. Your business’s security goals and the board’s current knowledge level can guide you in choosing the right one.

4. Combining policy and technology

Instead of scaring boards into preventing cybersecurity threats, enlighten them on the importance of protection. For example, boards should encourage IT departments to set strict employee password requirements and use password management technology to store and update passphrases.

Social media remains the king of the internet. Boards must also set social media limitations for those within the company. Restrictions include prohibiting employees from sharing sensitive business information online or using social media during work hours.

Despite the growing popularity of remote and hybrid work environments, boards must consider developing and implementing policies dictating how, where and when employees can access their business devices. Additionally, boards should set restrictions on removable devices — or, if required — IT departments must perform virus scans before devices connect to business systems.

Many companies are implementing a zero trust framework that requires all users to be authenticated and authorized before being given company data and app access. Boards should also consider a zero trust framework to prevent unauthorized access from unauthorized users.

5. Secure virtual meeting platforms

As more businesses communicate digitally, they must prioritize maintaining security across virtual meeting platforms. With tools like agenda builders, minutes makers, document centers, polls and voting, and messaging protected by robust security measures, the right virtual meeting technology allows companies to communicate effectively and securely.

When vetting a virtual meeting platform, boards must choose one with administrative, technical and physical safeguards to protect sensitive data. Also, ensure the platform complies with General Data Protection Regulations.

Data breaches cost companies an average of $4.35 million per breach. That number should raise eyebrows no matter how large or small the business. A multimillion-dollar data breach drains assets and puts companies on precarious financial footing.

But failure to prepare for these threats goes beyond monetary value. Businesses lose customer and employee confidence with each data breach – their sensitive data is at risk. Companies suffer significant reputational damage. It takes companies months – sometimes years – to recover from the consequences of cybercrime.

Prowling cybercriminals often remain undetected for months. Don’t wait to prioritize cybersecurity. The best time for boards to take the necessary steps to enhance their company’s security is now. The health and well-being of their company depend on proactive cybersecurity measures. Boards are pivotal in helping IT, and security teams build a protective layer around their digital assets and set security standards for the entire organization.

Author: Clara Shih

In sociology, the “proximity principle” describes the tendency for people to form interpersonal relationships with those who are nearby. We often become friends with people we encounter regularly, energizing and bringing joy to each other and sharing a smile, an inside joke, or drinks after work.

Then Covid happened. These days, proximity is harder to come by than ever. Even employees who do go into the office may find it empty or populated by coworkers they barely know due to hoteling or hot-desk arrangements. As evidenced by employee engagement surveys, burnout, and attrition across industries, employees’ social and emotional needs are no longer being met. People feel isolated and fatigued working from home, yet most (81%, according to a Harvard Business School survey) don’t want to give up the flexibility of not having to come in every day.

In this new reality, how can leaders fill their employees’ cup? How do we provide autonomy and flexibility while fostering togetherness? How can we balance social interaction with efficiency, since no one likes long meetings? We need something to replace the daily social dopamine hit we used to get from interacting with coworkers in the office — but as we’ve experienced over the last two years, more emails and Zoom happy hours aren’t going to do the trick. So, what will?

The Growing Importance of One-on-One Interactions

Employee experience can be viewed as the combination of an “air game” (of one-to-many interactions) and “ground game” (of one-to-one and one-to-few interactions). Leadership teams set the strategy and provide air cover with corporate brand, culture, values, and policies such as compensation philosophy, parental leave, return-to-office mandates, and more. The ground game is what employees experience day-to-day with their managers, peers, and direct reports. The ground game involves managers going out in the field, walking the talk, meeting with people, and confronting real problems on the ground. Contrast that with air-game tactics like company-wide email blasts.

While companies need to have both an air game and ground game, it’s very hard, if not impossible, for a corporate leadership team to facilitate deep connection from the top down. In today’s virtual and hybrid work reality, employee engagement and human connection are a person-to-person ground game. To illustrate the point, imagine an electrifying in-person company all-hands, or the last live concert you went to. Now try to imagine watching the same all-hands or concert on your computer. Even if you’re lucky enough to not have distractions or disciplined enough to not be multitasking, the online experience is nowhere close. In a remote work environment, the ground game becomes more important than ever in driving employee experience, engagement, and loyalty.

How Managers Can Keep Teams Engaged in a Hybrid Environment

Once managers have the support they need, they can take steps to foster emotional connection, team bonding, and fun to compensate for the loss of proximity in the office. Here are a few:

Have shared commitment and mutual expectations.

In the highest-trust relationships and highest-performing teams, each person commits to what can be expected of them so that the other can support, amplify, and help hold them accountable. In a remote setup, this extends beyond metrics like OKRs to include explicitly where, when, and how individuals prefer to work. Earlier this year, every team across Salesforce Service Cloud created a working agreement to document each team member’s needs and preferences. Often, an individual may belong to multiple teams: a team of peers (their manager plus their manager’s direct reports), their team of direct reports (if they’re a manager), and perhaps a scrum team. A working agreement should be created for each and may differ — for example, a scrum team needs to meet more often than a team of managers each running separate projects.

Check in Often.
The tidbits of life news and body language we’re used to picking up from physical proximity are now gone or drastically diminished, so managers need to be more deliberate about creating space for team members to share — perhaps dedicating part of staff meetings to checking in on life updates or having a Slack prompt inviting everyone to share a photo from their summer. One of the Service Cloud leadership team’s highest-engagement (and most fun) Slack threads last year was everyone sharing a photo from Halloween.Because so much meaning can get lost or easily misinterpreted in text or email, I’m also a big believer in picking up the phone. I make it a point to call or text each person on my direct team (or vice-versa) at least once every few days, even if it’s just to say hi and let them know I’m thinking about them. Bring the team together to decide what kinds of updates, requests, and sharing should happen over email or Slack versus in real time over the phone or on video.

Meet in person regularly.
Always have the next in-person meeting planned so the team has something to look forward to. Save contentious debates and collaboration-heavy work for those meetings. Spend extra time planning offsites, which are higher-ROI than ever, as they now need to generate enough team social capital to last between in-person meetings. I’ve found that first-time managers often need extra coaching and support to plan and execute their first offsite. Leaders should invest the time in sharing best practices as well as providing input, feedback, and encouragement.

Show appreciation frequently in large and small ways.
Without the smiles, nods, and other nonverbal cues we used to give our coworkers in the office on a daily basis, we now have to be more deliberate about giving praise. This was a lesson I learned when starting a new job during the pandemic in late 2020. Due to stringent Covid policies at the time, I didn’t meet any of my coworkers in person for over six months. At one point, one of the highest-performing VPs in my organization asked me during a one-on-one whether I thought he was doing a good job. He was (and is) doing an incredible job, and I told him so, but I was taken aback by the question. I realized then how little he must have felt he knew me and what I think, especially in contrast to if we’d been in the office together day-in and day-out. Thanks to this experience, I try to be much more deliberate now about giving out recognition frequently, celebrating the small wins, and encouraging all the managers across my organization to do the same.

Find a way to be together while apart.
Shared context bonds people together, and Covid has forced us to take a fresh and creative approach to team building. One of the most enjoyable evenings I had during the pandemic was a virtual Italian dinner with my team and our cross-functional partners. Though the 12 of us live in seven different places, we all enjoyed the same bottle of wine (shipped to each person ahead of time) and menu (from a local Italian restaurant in each person’s city). It was almost as good as being together in person and something we can do much more frequently than flying everyone to the same location. Another memorable moment was celebrating the holidays together last December with a beautiful virtual musical performance by one of our team members.

Not only are new methods required to address employees’ social and emotional needs, who carries out these methods is shifting from traditional corporate structures (air game) to the line managers running important ground plays. Providing employees with space, flexibility, and psychological safety isn’t enough — companies need to go beyond these table stakes to offer today’s remote and hybrid workers experiences that address their human need for the authentic connection, team bonding, and fun that used to come with in-person proximity at the office.

Culled from https://hbr.org/2022/08/keeping-hybrid-employees-engaged

Recent Posts

Top HR Challenges Facing the Public Sector — and How to Overcome Them

January 22, 2024

With 2022 underway, employers of all kinds are reckoning with a challenging Human Resources landscape. Increased competition for skilled workers, constantly changing COVID safety protocols,

Getting the most from strategy retreats

January 22, 2024

Strategic development is a joint board-management responsibility. It is the key stage of the strategy process where the board and senior management team work together

Genius Boards, UK partners with H. Pierson Associates on Board Solutions for Africa.

January 2, 2024

Genius Boards, UK and H. Pierson Associates Limited are delighted to formally announce their Boards Development partnership. This combines H. Pierson’s industry-leading management consulting services

In the past few years, the world, driven by Covid-19, has pivoted in ways most of us could not have predicted. On the back of that, companies are embarking on a series of transformation programmes, particularly to become more digitally mature as well as more sustainable on the triple bottom line of people, planet and profit.

However, doing business in today’s volatile climate is itself a tall order as companies have to juggle a vast network of evolving risks – internal, external and existential – with greater complexity and inter-connectedness than ever before. Managing large-scale transformations during these times will bring further uncertainty and raise the risk levels, but the opportunity to implement long-term sustainable change is one that companies cannot afford to ignore.

Therefore, it is no surprise that there has been a renewed focus on managing risks in the boardroom. In the ICDM 2022 ASEAN Board Trends Survey, we found that ASEAN boards are looking to elevate their oversight capabilities in risk, with the risk management committee (54%) emerging as the top board role requiring improvement in 2022.

From Passive to Proactive

In many organisations, there has been a tendency to deal with risk passively, regarding it as a compliance-oriented matter and conflating risk with finance and audit. This often results in missed opportunities in identifying areas of growth alongside the required levels of oversight to deliver breakthrough performance.

Instead, companies should develop a greater capacity to think of risk as being a proactive way of understanding uncertainty and the factors that can positively impact strategic outcomes. There is also a need to reframe the perception of risk from “something to be avoided” to “something to be explored”. After all, risk is embedded in the organisation’s pursuit of success.

A passive risk culture hinders transformative initiatives as it does not promote either innovation or the environment for new ideas, let alone providing the supportive culture necessary to facilitate an open dialogue on risk and opportunity, which ultimately drives success. A passive risk culture focuses on short-term mitigation plans which are often reactive in nature, rather than more robust, proactive and value-creating risk responses.

Amidst extensive programmes to drive innovation, digitalisation and sustainability, the risk management strategy should be refreshed in tandem with the aspirations for resilience and long-term growth. That means moving away from a controls-oriented risk approach and towards one that is dynamic and forward-looking. A forward-looking risk culture and setting the necessary tone for ensuring the right risk culture is perpetuated and driven by an organisation’s leadership.

While risk culture can be challenging for many organisations it can be defined through ten dimensions across four key areas: acknowledgement, responsiveness, transparency and respect, as outlined in Exhibit 1.

Exhibit 1:

Risk policies, procedures, and systems, regardless of how well-crafted and sophisticated, are only as good as the people responsible for executing them. Their mindsets, practices and behaviours will make or break the risk management strategy.

As part of the boards’ risk oversight duty, it is worthwhile for directors to allocate time and energy to create conditions that engender the desired risk culture. Here are five thoughtful actions boards can take to set the tone for a robust, forward-looking risk culture.

1. Align risk with strategy

Building a strategically focussed, proactive enterprise risk management mindset starting at the top

As the first step to transition from a controls-oriented approach to a proactive enterprise risk management mindset, boards should look at strategy development from the perspective of risk and opportunity management. For example, if a retail company’s vision is to be environmentally sustainable, their strategy development should include a consideration of potential scenarios, threats and opportunities, ranging from stakeholder expectations to regulatory requirements, and from tech disruptions to the environmental, social and governance (ESG) factors. Such an exercise brings greater insight and offers clearer direction. By understanding the gaps, strengths and weaknesses of the company, the board and management can arrive at a strategy that is far more purposeful and impactful and as an enabler in making the desired transformation happen.

Upon settling on a strategy, aligning risk with the execution of the strategy from the outset at the board level also allows companies to explicitly pinpoint the critical risks that would influence outcomes. For instance, if the strategy for the above-mentioned retail company is to digitalise and venture into the e-commerce space, it would have to consider risks in data privacy, cybersecurity, logistics, customer experience, the carbon footprint associated with packaging and delivery, as well as human capital. And let’s not forget the project-related risks associated with the development and implementation of new processes, systems and people needed to deliver the expected outcomes. Greater awareness of these risks increases agility and responsiveness by providing greater foresight in mitigating potential threats and capturing emerging opportunities, thus offering the retail company a smoother market entry and a better chance to get ahead and benefit from the upsides.

In a nutshell, building a proactive risk culture is the very foundation of successfully aligning risk and strategy, which in turn influences behaviours and performance.

2. Find clarity in diversity

Diversity plays a critical role in shaping the board and the organisation’s attitudes towards risk

Humans are at the core of risk oversight and management. Directors’ personal predispositions will influence boardroom discussions on risk. Board diversity, therefore, plays a critical role in forming the board and the organisation’s attitudes towards risk as imbalanced boards are more likely to have a distorted view of risk. Based on our observation, many boards today lack the diversity of thought, experience and skills to perpetuate deep discussions on risk.

Research shows greater board diversity fosters more efficient risk-taking, and organisations with diverse board members invest persistently more in research and development (R&D) and have more efficient innovation processes. This truly emphasises the importance of having a balanced board composition. For example, members with a legal background will have a very different perspective on risk from members who are entrepreneurs or members who used to be diplomats. By coming together, they form a more holistic risk perspective that will give the company a better chance of achieving sustainable performance.

Moreover, risk should not be treated in isolation and nor should it fall on just one director with “risk expertise” to act as the sole stakeholder and authority on risk. It requires diversity of experience, thought and seniority, all contributing their collective wisdom as a board to ensure the culture is cultivated right across all functions, departments, geographies, as well as with stakeholders including joint venture partners and the supply chain (extended enterprise).

3. Adopt networked thinking

Making sense of the growing interconnectedness of risks to build greater risk awareness

In an increasingly interconnected world, risks do not exist in isolation. Like humans, they form interdependent, complex networks. Events and technological advances have often been viewed in isolation when in fact many of the events, changes and innovations taking place elsewhere or in other industries can, and usually do, have an impact on organisations on a more global basis.

The instant noodles manufacturers in China saw a drastic decline in sales between 2013-2016. Amongst the key unexpected contributors to the drop turned out to be the explosive growth of China’s high-speed railway networks and the rise of instant food delivery.

Networked thinking provides organisations with an opportunity to develop a broader understanding of how external market forces can impact the business, be it supply chain, resources management or even reputation. Being able to make sense of the interconnected nature of risk forms the baseline for organisational resilience.

4. Empower everyone to take action

Drive risk collaboration by encouraging open communication and risk-informed decision-making across all business units

Creating an environment where conversations on risk are encouraged is an important first step. A risk-aware culture where employees feel safe to speak up and take action will be extremely beneficial in providing early warning and enabling speedy response to crises.

An excellent example can be seen in the oil & gas sector. Employees are encouraged to act if they see or even suspect something hazardous is likely to occur. They do so with the knowledge that there will be no adverse repercussions for taking action even if it means ceasing operations with a loss of production and revenue, despite the pressure to achieve performance targets.

Contrast this with the practice of days past when taking such action usually resulted in recriminations and retaliation from managers and peers. Interestingly, we saw a far greater number of major incidents and disasters happening when the culture did not support a risk-aware approach and did not empower people to proactively take action to manage risk.

5. Allow room for failures

Making risk less personal and incentivising smart risk-taking to capture growth opportunities across all business units

Executives and managers in large corporations are often discouraged from proposing or advocating for out-of-the-box but risky projects despite knowing that they could be good for the company. This can largely be attributed to fear of jeopardising their careers should the projects fail. Allowing room for failures through a test-and-learn approach can greatly reduce risk aversion amongst the workforce and enhance the company’s ability to capture and successfully exploit growth opportunities.

This requires the board to clearly define the risk appetite and communicate the mindset and behaviours expected in the day-to-day decision-making process. One crucial practice to consider is the use of scenarios, decision trees or other methods to map out likely outcomes – both positive and negative outcomes – bringing greater clarity along with the ability to better track and measure risks and outcomes, before deciding to embark on a project. Even if the project fails, it is not done in vain as companies can derive from it lessons learned that can be applied for future endeavours.

Exhibit 2:

Risk management is a perennial feature in business. However, as the business landscape evolves, the risk management approach must also evolve to meet the growing need for change and adaptability. Having a proactive risk culture to support the risk frameworks and processes will give your transformation initiatives a better chance of success. The impact of the tone from the top cannot be overstated and boards must first exemplify the risk culture they want the organisation to adopt by setting the tone and living the values. But to get there it needs boards to have honest conversations on risk and risk taking.

Does Your Company Have a Proactive Risk Culture?

Culture in an organisation can be defined as “how things get done around here” and risk culture is a subset of organisational culture. Risk culture is about how risk is viewed, dealt with, and how well understood it is. Here is a checklist the board can use to determine the company’s current state of risk culture.

Are the company’s risks aligned with the strategies?
Do we have a clearly defined risk appetite?
How well understood is risk and risk management?
Does everyone understand their role in managing risk?
Is risk embedded in the day-to-day decision-making and execution?
Are our reward structures such that we reward taking action to proactively manage risks?
Does the workplace encourage people to speak up?
Do we have a test-and-learn mindset and room to learn from failure?

Reference

Lim, M. K., & Griffiths, G. (2022). Your transformation initiatives might be impeded by a passive risk culture. Malaysia. Retrieved from www.bursamalaysia.com

Rising importance of sustainability

Why sustainability experts are essential to corporate boards

Support the board by providing feedback and sharpening your listening skills.

Reviewing The Job Description

Writing A Board Of Directors Resume

Uncovering Available Board Of Director Positions

National Association of Corporate Directors

Private Directors Association

Be Selective

Diversify

Network

Artificial Intelligence and its Business Process Effects

Artificial Intelligence as a Corporate Advantage

How Cybersecurity Flaws Affect Your Business

How Boards Can Help Enhance Cybersecurity

1. Digital governance committees

2. Security features

3. Educated board members

4. Combining policy and technology

5. Secure virtual meeting platforms

The Growing Importance of One-on-One Interactions

How Managers Can Keep Teams Engaged in a Hybrid Environment

Recent Posts

Related Post

Rationale

NAVIGATION

DOS AND DON’TS

Recent Posts

From Passive to Proactive

Does Your Company Have a Proactive Risk Culture?

Find us

Services

Follow Us