Creating an Agile Board of Directors  

21 March 2018:

Shareholders are poorly served by boards that provide “wait and see” oversight. The directors serving these passive boards increasingly find themselves in the cross hairs of activists, proxy advisory firms and major investors. They provide little “lift” to the shareholders they serve and the corporations they oversee.

Directors continue to face tumultuous corporate and personal change – 70% of the top 20 companies in the F1000 disappeared during the 2003-2013 decade. Only 35% turnover of top 20 companies disappeared in the 1973-1983 decade. Consequently, directors are stepping away from their legacy instincts for policy approval and compliance to become increasingly conscious of their catalytic role in identifying and capturing value more quickly than rivals.

Agility is the capability that board leadership is pursuing as a foundation for governance fitness and value creation.

An agile board’s role is increasingly one of anticipation and building capability for the future. Directors are being refreshed or re-invented to ensure they are more alert, innovative, better informed, and talented in rapidly pivoting company direction and resources. Agile boards must be more capable of changing the rules of the game ahead of their competitors and bring “first mover” advantages to their companies and shareholders.

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Source: European Business Review

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