Digitally smart boards always excel: here’s why

Digitally smart boards always excel. This is the new unwritten rule of corporate governance education. Let’s explore why it works this way.

An organisation’s success – or that of any of its projects – is ultimately measured by the bottom line. In digital transformation, this holds, too.

It’s easy to get carried away with the endless questions surrounding adopting digital technology – especially at the board level, where you might not see digital technology in action up close. 

But the bottom line is that a digital-savvy board will always pay off.  As a director, you are responsible for ensuring this value shines through. 

Here are the main factors that have led us to this point:

Ostensibly, the most significant mindset shift of the last 25 years is seeing digital technology as an asset, not just an enabler or tool. From a physical presence on the desk in the form of a computer, it is now in the clouds. 

With digital technology’s capabilities to modern business, labelling it as an “enabler or tool” is doing it an injustice. In reality, it’s a game-changer. The way we live, work, study, and play has changed dramatically in a relatively short period because of the possibilities digital technology has created and will continue to create. 

Digital technology adds value to all levels of society. Many who were unconvinced a decade ago now see that value following world events like the pandemic.  

Digital technology has permeated all aspects of the workplace – more than enough for corporate leaders to need a basic understanding of how it works.

That’s the thing: why have no idea. Perhaps the “new tech” era will never grow mature or old. Its possibilities are infinite. 

To illustrate, discussions around the end of cash and banks are gaining momentum. Despite the hiccups, central banks are closely watching the evolution of digital currencies. Mainstream or traditional banks have either looked into or experimented with digital currencies.

Indeed, the future is digital. How it will shape lives — work, study, and play — is the topic dominating the hallways of power in government and business. 

On account of this, companies must seriously consider having digitally aware or digitally savvy members on the board. Without them, your company may fly blindly into the digital age. It may not crash and burn, but as the pandemic has shown, the digitally savvy business found the pain of lockdowns less excruciating as they turned to digital technologies to leave the ‘Open for Business’ sign hanging on the front door.    

If you are a current or aspiring company director, read on. Digitally savvy company directors make a positive contribution to the company’s revenue. Here are the reasons:

The digitally savvy director is connected to what’s new or upgrading in the digital world at home, in the office, or at the gym. While they may not be digital natives, they are wired to note what is happening. 

Whether it is passion or critical to their professional career/business, staying on the edge of digital technology means they have early insights into the next big thing. Their digital antennae are constantly in motion to detect movements in the digital space. 

Given their intimacy with all things digital, they are more likely to be early adopters. This disposition will be carried into the boardroom, too. The day-to-day running of the business takes up senior business executives’ time and energy. Hence, learning what’s in and hot may take a while. The digital-savvy director can perform this role.

Digital technology is fascinating. Sometimes, it can be hard to imagine why it can’t work. When supported by empirical evidence of how it has worked for others, the temptation to sign the deal can be too hard to resist. After all, the first-mover advantage remains relevant today. 

Having said that, not every company has tasted success in its digital transformation effort. Some have failed. One of the reasons cited is the hope digital technology can mend a broken system. To illustrate, if the sales team is riddled with poor morale, adding a digital technology stack will not boost sales and revenue; it may worsen it. 

The guidance and insight of a digital-savvy board member with real-world experience are invaluable. They will take senior business executives beyond the immediate realm of technology. These insights should take into account other peripheral issues of importance they have experienced that are not in the user or setup manual.

Not everything in digital technology is plug-and-play. Complex structures often need to be pieced together over time, like a jigsaw puzzle, and someone may need to see the big picture. 

The ability to see the big picture helps the management team conceptualise and lay the roadmap for the transformation. Considering that it will impact a broad spectrum of stakeholders, it has to be well-orchestrated, including preempting possible hiccups.  

The digitally savvy company director knows only too well what can go wrong. Their ability to demonstrate leadership can make a difference in the success or failure of the transformation.   

Digital technology has thrown new challenges into the ring for board members. From data breaches and cybersecurity to the working styles of digital-savvy employees, they will lack the capacity to contribute effectively unless they truly become digitally smart boards.

With digital-savvy directors, the board has a resource to turn to engage meaningfully and effectively with senior business executives tasked with taking the company to new digital heights. Many decisions and actions they have to take will interest and concern shareholders. As such, board members cannot afford to be ignorant of digital technology.

The runway to digital success is very long. At times, it can be bumpy, too, with unpredictable wind conditions. However, with sound knowledge, company directors can help guide this transformation. Download the brochure here to learn more about the effective company director.