The transition from executive to non-executive is a particularly interesting one – one which requires an evolution from a leadership role to one requiring stewardship, guidance and, perhaps most important, mediation – aligning the interests of key stakeholders.
As technology becomes ever more the vital linchpin of business strategy and operations, many boards still do not have the know-how to oversee critical technology-driven initiatives, opportunities, and threats.
As change in the business environment accelerates, companies and their boards of directors must follow suit. Given the greater variety of business environments and the growing importance of non-competitive forces, corporate strategy is becoming more complex — and an increasingly important driver of performance. Furthermore, directors are facing calls from other stakeholders, including management and investors, to be more deeply involved in setting strategy.
Overseeing a company is no small task. Disruptive technologies are changing companies’ business models, geopolitical turmoil is impacting supply chains and investment opportunities, and increased regulatory complexity is affecting innovation. Institutional investors and shareholder activists are also playing a more powerful role shaping corporate governance. Boards of directors have to keep up with all of these changes in order to be effective.
Advisory boards are all the rage right now. A startup can make headlines by appointing a tech veteran to their advisory board, and a pedigreed advisory board can become a selling point in establishing market credibility.
The amount of time board directors spend on their work and commit to strategy is rising. But in a new survey, few respondents rate their boards as effective at most tasks or report good feedback or training practices.
Strategic thinking at the top of a company is more important than ever for business survival. But boards of directors have no clear model to follow when it comes to developing the strategic role for the companies they oversee. Should they supervise, co-create or support strategy?
As part of PwC’s series examining Family Business Corporate Governance its first module focuses on the board’s role in a family business. It will help you understand how to build an effective board for your family company, and how boards can assist with some of the particularly challenging issues family companies face. You may want to evolve or change your governance model and what you could expect from a board if you do so. Whilst each family company’s situation is unique, the aim is to provide a framework of how corporate governance practices apply to family companies so you can decide what’s best for you.
The role of an NED on an unlisted board may be quite different from that in listed entities, probably due in part to the dynamics of the ownership structure, the influences imposed by internal and external stakeholders and the composition of the boardroom.