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Mitigating Cybersecurity Risks Starts with the Board

October 3, 2022 0Board

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.

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.

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KEEPING HYBRID EMPLOYEES ENGAGED

September 8, 2022 0HRC

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

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EFFECTIVE LEARNING THROUGH EMERGENT TECHNOLOGIES

September 8, 2022 0Learning

Author: Dr. Awele Ohaegbu Emerging technology refers to innovative ways of doing things with the potential to be more widely adopted in scope, practice, and solutions. Most often than not, emerging technologies are not novel, yet to be fully adopted or in a state of flux. The aim of these tools is to provide a digitally driven approach through the Internet of Things (IoT), which involves objects that can process, exchange data, enable experiential interfaces and interactions. Some of these technologies include Virtual Reality, Augmented Reality, Mobile Learning (m-learning), Adaptive Learning, Live Streaming, Wearable Technologies, Immersive Classrooms, Games, Simulations, Open Education Resources (OER), and Robotics. These learning methods, though perceived as the same, are actually very different in their learning accessibility, flexibility, engagement, and content delivery. Despite the very broad options in digital learning technology, there are encompassing limitations to these mediums of knowledge transfer, such as connectivity, speed, non-compliance of user interfaces due to rapid technical innovation, poor instructional designs, and switching from traditional teaching practices. A major tenet for the increased acceptance of emergent technology in learning, despite infrastructural, environmental and cost implications, is to achieve Smart Learning. Smart Learning refers to a multi-adaptive set of “possible spaces’ for teaching and learning. Possible spaces include mediums of communication, sensors, data exchange platforms, as well as learning and non-learning variables that can be modified to aid learning. Furthermore, a given set in every possible space will take cognisance of every knowledge activity, enabling precise adaptive actions in response to perceived learning realities. Smart learning converts learners’ capacity through the assessment of their strengths and weaknesses depending on learning objectives. How do you ensure you achieve your learning objectives in this era of rapid technological change? How do you know which learning method is ideal for each objective? Too many options to choose from, right? Well, depending on the type of knowledge being sought, learning objectives and purpose of seeking knowledge, engaging a learning consultant is the best bet for individuals and organisations to fully benefit from digital learning technologies effectively. Here are reasons why you should engage a consultant:
  • It eliminates the waste of time and the cost of trying out digital options. It is noteworthy to state that regardless of how appealing a digital method may appear, it may not effectively serve your learning needs or purpose. Your consultant will help you do a thorough content and context evaluation.
  • Professional consultants deploy their experience from previous clients to your advantage.
  • They pay more attention to adapting details such as instructional designs and experiential interfaces where applicable.
  • They can do learning analytics for you! Consultants can help neutrally track learners’ behavioral data, identify and recommend further interventions to achieve learning objectives.
  • Continuously monitor digital trends and gradually diffuse them into existing learning systems to avoid technological shocks from abrupt switches.

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ACHIEVING EFFECTIVE CORPORATE RETREATS

August 15, 2022 0Strategy

Authors: Dr. Awele Ohaegbu and John Eni-Edom

A retreat is a meeting unrestricted by traditional approaches and routines to create an atmosphere that addresses overarching concerns, discussions, strategic planning and creative thinking. In other words, it is used to handle issues otherwise limited during regular business meetings.
Retreats enable a shared understanding of organisational needs, opportunities, and issues. It promotes a sense of unity, effective teamwork and mutual respect. Proper planning is necessary to achieve productive retreats. It is noteworthy that one single retreat is most unlikely to solve, recognise or determine opportunities. However, it is strongly recommended that the main issue to be addressed at every retreat be clearly identified. Once an issue has been identified, a theme is chosen, with at least one and not more than two topics within the theme for concentration.

Rationale

There are different types of retreats, which include succession planning retreat, strategic planning retreat, organising retreat, board evaluation retreat, and orientation retreat. In the real sense, employees look forward to retreats either with excitement or disdain. At best, it is an opportunity for renewal, refocus, and team building. At worst, it is just another “dull” few days of many talks or extended meetings.
To make your retreats more effective, there is a need to work with a strategic planning group on the outcome from the beginning. The goal is not to achieve a specific outcome, but to develop a focus that will guide you toward achieving the retreat’s objective(s).

At H. Pierson, we deploy visual thinking tools to aid organisations reach a shared picture of the future quickly. Click on the button below to download strategic retreat brochure

NAVIGATION

Before the retreat, endeavor to provide participants with the necessary data and insights required to make informed decisions during the sessions. These can include financial performance and forecasts; market performance; external market data; information on your competition; and customer analysis.

Depending on the type of retreat, it may be imperative to do a strategic analysis of what it is now, where you want to get to, and how to get there effectively. Also, it could be to foster a collective vision, create a common framework, develop goals and objectives, deal with conflict sources, resolve entrenched challenges, and orient new staff.

DOS AND DON’TS

Draw positive energy from physical and psychological distance from the office. Relax the rules, suspend formal boundaries! Have some fun. Informality and humour are tools for creating engagement. Involve professional firms in planning your retreat. These firms will help plan, develop, and set realistic goals with expectations from a neutral point of view. If there is a need to get an expert facilitator within the identified theme, be sure that with a professional firm, the sole interest is in achieving a successful retreat.

Do not presume the retreat as a reward or make an individual’s problem a group issue. A retreat is neither meant to fulfill a clandestine agenda nor expressly improve morale. If the retreat organiser does not intend to act on the suggestions of participants, then it may turn out to be a poorly executed one, achieving little results in the long run.

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YOUR TRANSFORMATION INITIATIVES MIGHT BE IMPEDED BY A PASSIVE RISK CULTURE

August 15, 2022 0Risk

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.

  1. Are the company’s risks aligned with the strategies?
  2. Do we have a clearly defined risk appetite?
  3. How well understood is risk and risk management?
  4. Does everyone understand their role in managing risk?
  5. Is risk embedded in the day-to-day decision-making and execution?
  6. Are our reward structures such that we reward taking action to proactively manage risks?
  7. Does the workplace encourage people to speak up?
  8. 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
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Six Steps To Building A Thriving Company Culture

July 15, 2022 0HRC

Corporate culture can be tricky to define. Every leader knows the importance of developing a thriving corporate culture, but the concept can mean many things to many people.

Here’s what culture is — and how to build a robust and thriving one.

1. Culture is about leadership.
A leader sets an example for others to follow. In fact, the first words that every leader should speak to their team is “follow me.” An organization’s leader is always the first to define the culture. As the leader acts, the people will act. What the leader embodies, the organization will embody. One thought that effective leaders should always consider is, “What if the corporate culture looked exactly like I do as a leader?” This question is both penetrating and convicting. A leader should strive to lead in such a way that the corporate culture is a direct reflection of their leadership.

2. Culture is about storytelling.
Great corporate cultures develop through storytelling. Stories shape the identity of the organization. They teach people how to make better decisions and illustrate where people should be focusing their time and attention. Good leaders are master storytellers. Influential leaders craft stories to make essential points that his or her followers will always remember. If you want to shape a great culture, be a grand storyteller.

3. Culture is also about experiences.
Good leaders know that healthy cultures develop when people not only hear about the values of the organization but experience them firsthand. Every CEO and leader should focus on becoming their company’s chief experience officer. Experiences create memorable moments that employees will remember for years.

4. Culture is about sacrifice.
Leaders inspire their people to give more than they think possible. They challenge their employees. They ask employees to sacrifice for the greater good. It is the leader’s job to remind followers that there is always a bigger why. Every leader must examine if they have created a more prominent call to their people so that the people understand the value of their sacrifice.

5. Culture is about community.
Companies today consist of different people from different backgrounds with different skills. In spite of their differences, great leaders call people to work together in unity. Leaders of great cultures role model humility and service. Servant leaders model an example of thoughtfulness. Great cultures call people to serve each other, and employees see themselves not as individuals but as a team. Don’t sabotage your culture by only rewarding individual effort. Learn to reward both individuals and groups for company breakthroughs.

6. Culture is about commitment.
Great cultures are built by a team’s commitment. Leaders who are striving to develop a thriving culture should consider what commitment they want from their people, and ask them to commit to that greater cause.

Today, we may never be a leader who changes the world, but we can change our world by changing our culture. When leaders follow these core principles, they begin their journey of building a great culture and a thriving business.

Source: Forbes | https://www.forbes.com/sites/forbescoachescouncil/2018/06/06/six-steps-to-building-a-thriving-company-culture/?sh=6303e8f62c20

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LEARNING ADAPTATIONS IN A POST-PANDEMIC ERA

July 15, 2022 0Learning

Author: Dr. Awele Ohaegbu

Digital learning is knowledge that is enabled, facilitated, or mediated through technology for enhanced skills, training, and development (CIPD, 2021). It can be classified into formal, informal, and blended learning. Formal digital learning refers to the delivery of formal courses, usually for a fee. Informal digital learning is linked to knowledge sharing to support informal learning. Blended or supported learning is a combination of both formal and informal methods.

The COVID-19 pandemic spiralled a sharp switch with quicker adaptation to digital learning, as well as new technologies to support digital content such as micro-learning, user-generated content, and curated content. Other driving factors for digital learning growth include technological advances such as virtual reality-based learning, increased learner familiarity, and improved access to high-speed broadband. The disruption and recession caused by the pandemic have led to resourcing considerations of cheaper, faster, and shorter development courses for employees.

Furthermore, a prevalent requirement for employees’ upskilling due to organisational and technological changes has contributed to digital learning growth. Digital learning can also be perceived as an enabler of self-paced study patterns, giving it an edge over traditional classroom methods. According to Malhotra (2021), factors influencing knowledge interactions such as expert-based trust, organisational culture maintenance, employee autonomy management, and adequate feedback must be fully considered in virtual learning settings.

In summary, effective digital learning can be achieved through two key parameters: meaningful learning and mindful learning. Mindful learning entails the balance between interpersonal collaboration and technological mediation, while meaningful learning includes creativity, immersive teaching, and impactful engagement.

References

CIPD. (2021). Digital learning in a post-Covid-19 economy: A literature review. London: Chartered Institute of Personnel and Development.

Malhotra, A. (2021). The post-pandemic future of work. Journal of Management, 47(5), 1091-1012. DOI: 10.1177/01492063211000435

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Strategy Execution Pillars

June 12, 2022 0Strategy

According to research published by Harvard Professors Robert Kaplan and David Norton (2008), the rate of strategy execution failure in businesses ranges from as high as 60% to 90%. Many organisations will fall short of their goals, especially when there are disruptions in the business environment within which they operate.

However, there are opportunities to set self apart and lead organisations to success, through execution acceleration and moving from a reactive to a proactive approach. The following pillars should be in place to successfully implement your plans; a clear strategic vision, the right people and culture, accountability and enterprise performance reporting.

A Clear Strategic Vision

“If you do not know where you are going, you might end up someplace else.” —Yogi Berra

Properly articulating a vision is vital for any business, particularly in a fast-paced and rapidly evolving sector. A poorly crafted and unclear vision statement will most likely lead to poor execution. Hence, a vivid vision is critical to successfully executing the strategic plan. The vision statement should clearly define unique values, success definition, and destination. It must achieve strong human connections within the organisation in order to be assured of its successful execution.

One way of getting your employees on board with the vision is to deploy The Visualisation Approach. This process entails the use of stories and visual comprehension modes to achieve a deeper connection to the vision. This approach increases group internalisation and follow-through by explicitly connecting the strategic intent to the desired execution outcomes.

Do you need to activate your vision or strategy? You can book a free consultation with us.

The Right People and Culture

“44% rank aligning the implementation of strategy to company culture as the toughest challenge.” – Cascade (2020)

Better execution starts with successfully activating strategy into the culture, yet most organisations do not usually see the line between culture and strategy execution. Even where they do, they are unable to achieve the desired impact on execution.  In truth, the successful execution of a strategy ultimately depends on individual members, especially key managers. Therefore, aligning strategy with learning and internalization, managing, measuring, and rewarding people is critical to effective strategy execution. Today’s management must put strategy activation, a strong company culture, employee competence, and experience as a priority. Otherwise, the consequences will be reflected in the strategy’s execution.

H. Pierson provides a powerful tool for aligning the culture, energies, and talent of your employees towards achieving your organization’s strategic objectives. Our Strategy Activation and Cascading Solutions close the gap in strategy development. Download our brochure.

“The ability to make good decisions regarding people represents one of the last reliable sources of competitive advantage since very few organizations are very good at it.”—Peter Drucker

Accountability and Enterprise Performance Reporting

Who in the organisation is responsible for tracking the progress of specific strategic initiatives?
How do you ensure updates are on time and accurate?
Frequently, strategic initiatives fail because no one is held accountable for their progress. When a team or multiple individuals are the “owners” of an initiative, there is no one clear-cut accountable party.

The accountability and reporting process can be broken into data collection, data analysis and reports. Data collection is the process of collating information from disparate places into one system, to enable your analysis and decision-making with as much information as possible. Data analysis entails the examination of data to learn more about the story, with the use of data visualisation to increase comprehension through charts, grids, colour-coded icons, heat maps, dashboards etc. It helps to identify what is on and off-target, as well as what is needed to adapt into existing plans based on emerging observations. Reports help to distribute findings so that team(s) can review and discuss them for decision-making purposes.

Enterprise Performance Reporting is essentially about organising performance data, so that grey areas can be quickly identified within the execution process, track improvements, and ultimately foster accountability and execution success.

Through our 30+ years of experience working with clients across multiple sectors, we know what it takes to overcome challenges in the execution of your corporate strategies. This is achieved by fully deploying our proprietary tools and techniques that drive firm-wide strategy execution.

 

Author: H.Pierson’s Strategy Team

References

Kaplan, R.S., & Norton, D.P. (2008). The Execution Premium: Linking Strategy to Operations for Competitive Advantage. Massachusetts: Harvard Business Press

Team, C. (2020, March 13). 51 Strategy Statistics and 3 Key Lessons to Help You Succeed. Retrieved from Cascade: https://www.cascade.app/blog/51-strategy-statistics

Thiru, T. (2020, February 19). How to Bridge the Gap between Vision and Execution. Retrieved from Forbes: https://www.forbes.com/sites/forbestechcouncil/2020/02/19/how-to-bridge-the-gap-between-vision-and-execution/?sh=24f6e5e63548

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A New Way to Employee Engagement

June 10, 2022 0Human Resources

“Dispirited, unmotivated, unappreciated workers cannot compete in a highly competitive world, to win in the marketplace you must first win in the workplace” Stephen. R. Covey 

Employee engagement is fast becoming a prominent success factor in the current highly competitive marketplace. High and appropriate levels of engagements are important elements for the retention of talent, fostering employee loyalty, and improving employee motivation and organisational performance. Because employees’ engagement needs vary, taking a one-size-fits-all approach to employee experience will often mean you are not able to effectively identify and address issues that may be crucial, to the detriment and risk of employee productivity, and retention. Employee engagement strategies are best streamlined along the employee life cycle of onboarding, initial development, ongoing development, retention, and separation. 

Onboarding (0 – 3months) is the process of integrating a new hire into an organisation, its vision, mission, core values, structure, and culture. It involves making available necessary support for the new hire to be productive, as simple as car park notice for employees, or how to access and retrieve stored documents. Onboarding is often interchanged or mixed with orientation. While Orientation is important for completing routine processes and paperwork, onboarding is a comprehensive process involving management and other employees which sometimes can last more than three (3) months. If properly implemented, it is an effective employee engagement strategy capable of positively impacting employee retention within the organisation and new hire’s productivity. However excited people are to start a new job, there will be concerns about meeting the expectations of their bosses, fitting in with other team members, and figuring out how their job will contribute to the success of the organization. Onboarding is a prime opportunity for employers to assist new hires with their concerns, and ensure they settle in easily. 

Initial Development (3-24months) entails new employees establishing themselves in the organisation. Their focus shifts from developing the skills required to mastering their job functions. This creates a perfect time to speak with employees about their career ambitions and outline a clear growth plan. Initial Development is all about investing in your employees, which will ensure that people are able to meet the demands of their job and excel in the long term. For aspirants into more senior positions, it’s a way to provide the skills and training that will set them up for future success. Various and relevant developmental programs, as well as well-articulated mentorship programs, are usually impactful. Investing in employees is beyond building future assets for the organisation. Asides from helping employees to achieve their personal and professional ambitions, there will be a higher commitment on the job as well as loyalty to the organisation from the employee. 

Ongoing Development and Retention (24 months & above) is about helping employees to develop the skills to master their job role, Ongoing Development and keeping employees engaged. By the time employees have reached this phase, reasonable investment would have been channelled into their progress, to have become key knowledge-holders within their function. Employees that have been retained this long, are a valuable pool of talent for leadership positions. They have market expertise, along with an intimate understanding of how the organisation works, its systems, culture, and people. 

Separation occurs when employees decide to move on from an organisation. For some, reasons will be unrelated to negative experiences, they may have thoroughly enjoyed their time, but personal reasons encouraged them to move on. On the flip side, there will be those that decide to leave because of certain issues within internal control. Regardless of the type of experiences employees may have, the separation phase is an opportunity to have a grasp on why people are leaving. If handled in the right way, it will help understand the reasons behind employee attrition. With adequate attention and support to exiting employees, organisations can build a pool of lifelong advocates and brand alumni, from which there can be mutual benefits in the future. 

Employee engagement spans different touchpoints and diverse interactions. With a holistic view from employees’ entry up to their exit, organisations will have a better understanding and value for how their needs evolve. When an employee’s journey is broken down into clear stages, it makes it more practicable to identify the processes that need improvement, as well as the assignment of such responsibility with specific actions to different people. This enables greater positive employee experiences in multiple aspects at the same time. 

Written By 

Tosin Oluwatimilehin MNIM 

Senior Consultant 

Head, Human Resources Consulting

H. Pierson Associates Limited.

 

Are you considering developing a structured onboarding process, conducting an employee engagement survey, or improving the employee engagement framework? At H. Pierson we assist you with an iterative approach to your employee engagement, which aligns with the fluid nature of an individual employee’s journey within your organisation 

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NIGERIA’S REGULATORY CRYPTO-TWISTING FIST BY H. PIERSON ASSOCIATES LIMITED

June 5, 2022 0Blog

The Central Bank of Nigeria (CBN), on the 5th of February 2021, instructed the identification of individuals and platforms engaged in cryptocurrency transactions with the aim of stopping its trade and facilitation. The CBN’s stance may be justifiable, as there was a growing risk and the perceived need to control what seemed like an off-the-radar path to escaping financial regulation through cryptocurrency transactions. This decision however sparked outrage, controversy and some setbacks for the rapidly growing financial technology sector, which is said to have attracted more than $600 million in foreign investment between 2014 and 2019.

In what was perceived as an attempt to cushion the crackdown, the e-naira was launched on the 25th of October 2021 as a Central Bank Digital Currency (CBDC), issued and regulated by the apex body and pegged to the value of the naira. Although a CBDC is not a cryptocurrency, it is best described as a crypto-asset or digital asset. So, within one year, the CBN clamped down on the country’s bustling cryptocurrency engagements, it also became the first African country to own a national digital currency.

Following this on May the 11th, 2022, the Securities and Exchange Commission (SEC) published rules on the issuance, offering and custody of digital assets on its website. The 54-page document targets sponsors, issuers, domestic and international platforms that facilitate digital asset transactions, including cryptocurrencies. In what seemed to be a coincidence, these new guidelines came immediately after the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva urged countries to look into the digital future and adopt public digital platforms to connect payment systems. She emphasised that even though the risk of fragmentation exists, it is worth exploring the idea of a platform that connects diverse forms of money for different categories of people in all countries.

With a gradual trend of corporations keeping cryptocurrencies as assets, even declaring the same on their balance sheets, it is clear that the mindset is tilting towards wider acceptance, despite sanctions to discourage full adoption. H. Pierson Associates commends SEC for its new guidelines that will strike the balance between regulatory standards and cryptocurrency operations in Nigeria. It is recommended that conventional financial institutions acquire the requisite knowledge to fully harness the benefit and opportunities of digital assets. This recommendation is imperative because, with a crypto-vibrant youthful population such as ours, liquid currency advocates can only gain fewer counterparts.

 

Dr. Awele Victoria Ohaegbu is a consultant with H. Pierson Associates Limited.

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