Boards Take on More Agency to Drive Corporate Resilience

Key Takeaways:

• Increased Agency and Responsibility: Boards are evolving to take on more agency and responsibility, often driven by a need to be the public face of the company, sign off on increasing disclosures, and develop compensation philosophies. This shift requires boards to embrace themselves as responsible and independent bodies capable of drawing informed conclusions and making decisions to sustain the organization.
• Long-term Strategic Interest: Boards must focus on long-term strategic interests to drive management’s accountability for corporate strategy. They need to further be focused on resilience and prepare for future challenges, balancing short-term risks with long-term goals.
• Use of Technology and Driving Information Expectations: Embracing technology, such as online board portals, can assist in managing increasing information and improving efficiency. Compelling management to use tools, such as graphic dashboard reporting and targeted executive summaries, that support reporting can simplify complex data, making it easier for board members to understand and act on critical issues.
• Orientation and Human Interaction: Effective onboarding and orientation of new board members are crucial. This includes personal interaction with management and other board members to build familiarity and trust, which is essential for the board's effectiveness.
• • Interplay with Management: Encouraging more interaction beyond executive management can inform and enhance the board's ability to oversee and guide the company. This includes vetting information from various sources and bringing outside perspectives to internal discussions.