Heidrick & Struggles: Future-Proofing Your Board
Boards were traditionally designed chiefly to provide investors oversight of how their money was being used and focused almost exclusively on CEO succession, executive compensation, strategy oversight, compliance, and general risk. In less volatile and rapidly shifting times, this remit was entirely appropriate and sufficient.
But far more is demanded of boards today; one experienced director summed up the situation: “Boards have a huge number of items they are expected to tackle in a meeting—and the list just keeps getting longer each year.”
And for a number of reasons, many boards aren’t able to meet the expectations of leadership teams, investors, and stakeholders as well as they would like, despite often diligent efforts. This dilemma has grown more stark and urgent as companies grapple with the continued repercussions of the devastating COVID-19 pandemic. The underlying reasons for not meeting these expectations run deep.