63%
Rated their own boards as ‘Satisfactory’ in innovating and adapting
In our survey, 94% of respondents rated their board’s capacity to consider the acceptance of appropriate risks as important. Only 63% rated their own board as satisfactory in innovating and adapting.
In practice, the capacity to adapt first requires that the conditions that create uncertainty are properly analysed by the organisation. Gathering robust evidence of changes in markets, financial, operating and technological conditions will enable boards to make informed decisions. Firms that demonstrate resilience in turbulent markets have the ability to collect and process this evidence, sense changes in data swiftly and process weak signals from the periphery.
Boards must decide who is asking the critical questions about the balance between today’s business and future options. Who is assessing the risk of the future asteroids that might cross the company’s path? World class boards try to anticipate the next development – to future proof the company.
Balancing resilience and flexibility is always difficult. Any business must seek out the right blend of capabilities for today’s operations while investing sufficiently to be ready for tomorrow’s opportunities and threats. The chairman has an important role in challenging the executive team to keep an eye on this balance.
Business resilience needs to be given sufficient time to be discussed so that the board can provide guidance and direction on the risk register. Ensuring that the discussion of business resilience receives a balanced share of the board agenda should be driven by chairmen. Making it a regular item on the board’s agenda or establishing a sub-group helps keep this as a priority.
Technology and people underpin longevity. For example, technology road-maps linked to data on market trends can reveal new opportunities to grow revenue. And well connected R&D teams can tap into new independent thinking from knowledge centres, universities and organisations. In particular, the chairman and the board should probe the extent to which the CEO has developed appropriate relationships with other organisations to enable it to draw on the knowledge required to innovate.
Whatever the approach, businesses that demonstrate a capacity to adapt typically have a deep understanding of their core capabilities and innovate by investing in new skills. They are also led by chairmen who pay attention to creating the capacity to adapt; have boards which receive reports on the levels of risk, uncertainty and innovative responses underway; and which take on the individual responsibility to challenge the CEO on the balance between today’s activities and future options.
“Whatever the approach, businesses that demonstrate a capacity to adapt typically have a deep understanding of their core capabilities and innovate by investing in new skills.”
Heidrick & Struggles 13
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48