The board’s role is changing in part because of technology. Their capacity and competence in this rapidly emerging area can have a profound impact on whether an organization creates value from technology investments and effectively oversees risk.
With a capable board, value creation is the result of strategic oversight done well. Boards should have the balance, depth and breadth of competencies, the influence, time and capability to think strategically, and lead value creation within the constantly changing digital economy. Their competency to lead and govern the strategic use of technology can be a game-changer.
Consider how your board uses governance processes to meet its duty of care. Reflect on how technology-related risk is treated, the priority it’s given, what percentage of cap-ex and op-ex relates to technology and how your board in general currently makes technology-related decisions.
Be honest. Could your board demonstrate that it has all taken the appropriate and reasonable care to understand the depth and breadth of technology opportunity and risk to make good decisions?
Many organizations still regard IT departments and technologies as intrusive expenses. The board leads this mentality and it can lead to some interesting and very costly outcomes.
Consider for a minute the leadership role of the board and the executive team in the many failed or blown out IT projects, especially in government departments. In this continued lack of focus on digital leadership from the board, opportunities for digital innovation and value creation are being missed.