Directors' Alert 2014
Greater oversight, deeper insight: Boardroom strategies in an era of disruptive change
The 5th edition of the Directors' Alert examines some of the top challenges likely to face companies and their boards of directors in 2014, focuses on governance topics such as innovation, technology, productivity, strategy, leadership, regulation, and diversity.
The challenge for organisations is to recognise when disruptive change is occurring and to act quickly and decisively when it does.
Change is something that every organisation faces dozens or even hundreds of times each day. Usually, these changes relate to the ongoing challenges of operating the organisation.
Most organisations have management teams that are very adept at anticipating and managing these types of changes, which are normally predictable outcomes of their business strategies and operations.
In this environment of ongoing, tumultuous change, organisations and their management and boards of directors must respond quickly and adeptly if they are to effectively address all the disruptive changes that surround and affect them.
For boards of directors, this often requires greater oversight – expanding their scope to include activities and areas that were not traditionally part of their mandate. At the same time, boards must ensure that management provides them with deeper insights into the organisation’s activities so directors can clearly understand all of
potential opportunities and risks.
The report outlines 10 key challenges that boards of directors may face in 2014:
1. Innovation: How innovative is your organisation about innovating?
2. Technology: Is your organisation at risk of being a cyber-crime victim?
3. Productivity: It's about doing better, not more
4. Strategy: Volatility isn't just economic when setting strategy
5. Growth strategies: Is your organisation aligned for growth?
6. Leadership: Developing the leaders of tomorrow
7. Regulatory: The pace of change continues
8. Integrated reporting: Are you telling your story...the whole story?
9. Taxation: Could tax be dangerous to your brand's health?
10. Board composition: Balancing diversity and expertise to maximise board effectiveness