IT or digital capability on your Board or governing group (Part 2). What capabilities?

By Mark Nicholls, Partner, Information Professionals

If you accept the need to improve the IT/digital capability on your Board or governing group (see our last blog) then a reasonable question is, what skills are required?

This article is unlikely to completely answer this question for your organisation, as all organisations are unique, but it aims to give you some prompts and guidance to assist. Firstly, we'll consider your organisation, then the range of skills in IT/digital.

Your own organisation

In considering your organisation, a good place to start is the Tricker Model. It is one of many lenses you can use to determine where your Board priorities are and therefore where your skill priorities may be in relation to IT/digital. Other areas to consider include your corporate strategy and corporate risk register. These may provide guidance on where your priorities are. You may also want to consider the confidence you have in various skills across your Executive team.

IT versus digital

In considering what the range of IT/digital skills are, let’s unpack this IT/digital term. As demonstrated, often when the term 'IT' is used, it is in the context of internal organisational capability. Likewise, when the term 'digital' is used it is often in the context of how an organisation relates externally to its customers, competitors, suppliers and the broader ecosystem in which an organisation operates.

Of course the two are related, as it will be challenging to adopt digital externally unless you have the capability internally to deliver.

When Information Professionals develops ICT strategy, some things we consider include:

Governance – how IT decisions are informed, made, implemented and assessed;
Alignment – aligning IT strategic priorities and intent with organisational strategy; and
Capability – the ability to deliver to the organisation’s needs, leveraging internal and/or external capabilities across infrastructure, security, technology, applications, data, business process and all other domains.

With digital strategy, we consider:

Digital marketing – to extend the sales and marketing capabilities into the digital world;
Digital business – to integrate digital strategy into business strategy;
Digital transformation – to drive digital across the enterprise along with the introduction of digital performance measures; and
Digital economy – to widen the scope of influence to the extended value chain and communities in which an organisation operates, and drive digital across this wider group.

How well informed are you and your Board in understanding your current and target state for each of the above areas of ICT and digital?

IT and digital topics

The AICD Essential Director briefing (referenced in the previous blog) provides some guidance on where the peak body for Directors defines key areas of interest for the Director community. Since 2013, these areas are:

Year	Topics
2013	Social Media; IT Governance; Current IT Issues (NBN, BYOD, Big Data, The Cloud, Cybersecurity, Innovation)
2014	Governance Landscape (Innovation, Social Media); Technology Trends (Digital transformation, Data, analytics and the power of information, Mobile, Cloud computing, Cyber security and resilience, IT-enabled projects, 3D printing and additive manufacturing, Robotics, Quantified self, Australia’s place in the digital economy)
2015	Risk Management (Cybercrime, Social Media, Real-Time Performance Dashboards); Technology Trends (Fintech Start Up Hub, Stone & Chalk, Crowdfunding, Retail Omni-Channel, Internet of Things, Live Streaming)
2016	"Exponential Technology" (how "Technology has become indivisible from how people, enterprises and governments operate); Digital Disruption; Virtual Reality; Machine Learning; Data Analytics; Blockchain

Amongst these topics, there are a few themes which repeat over multiple years. The bolded topics are a clue. These themes form a guide on the general skills each of us need to have. They are:

IT Governance (2013: IT Governance; 2014: IT-enabled projects)
DigitalTransformation (2013: Innovation; 2014: Innovation & Digital Transformation; 2016: Exponential Technology, Digital Disruption)
Digital Media (2013: Social Media; 2014: Social Media; 2015: Social Media)
Security and Privacy (2013: Cyber security; 2014: Cyber security and resilience; 2015: Cyber crime)
Data and Analytics (2013: Big Data; 2014: Data Analytics and the Power of Information; 2015: Real-Time Performance Dashboards; 2016: Data Analytics)
Digital Ecosystem (2014: Australia’s place in the digital economy; 2015: Fintech Start Up Hub, Stone & Chalk)

Each of these themes will have varying degrees of interest to all organisations and will feature in some form, for many years ahead. Therefore, it will be prudent to consider how savvy your Board is in being able to properly enquire on, consider and discuss them.

What is most important about these themes is that they can be applied to many specific technologies that you may be encountering now and in the future.

Other topics covered in the AICD briefings are specific and more transient technologies which will have greater or lesser prominence for your organisation, both now and in the future. They include:

2013: NBN, BYOD, Cloud
2014: Mobile, Cloud computing, 3D printing and additive manufacturing, Robotics, Quantified Self
2015: Retail Omni-Channel, Internet of Things, Live Streaming
2016: Virtual Reality, Machine Learning, Blockchain

These specific topics and others may come and go in prominence for your organisation over time. If any of these (or other areas) are a priority for your organisation, then please consider how well informed your Board is. However just because there is a focus on, for example, cloud or machine learning, in your current strategy, it may not warrant bringing on a Director with knowledge in these specific areas.

There are multiple ways of ensuring your Board is well equipped to oversee its responsibilities in relation to IT and digital. In our next blog we'll discuss what they are and how you can apply them.

About the Author:

Mark Nicholls, Managing Director, InformPros

Mark Nicholls is the Managing Director and a Partner with Information Professionals Group (IPG). He formed IPG in 2005, after a career of delivering software development and business transformation programs in the telecommunications, transport and government sectors in Australia and overseas including the United States. Mark leads IPG's Programs, Projects and Change Practice. He is a highly skilled program manager and adviser, specialised in leading, managing and advising organisations on the delivery of ICT, digital and business transformation.

Mark is an active industry participant. In 2013 he was elected to the QLD Council of the Australian Information Industries Association (AIIA), was appointed as Chair in 2014 and to the Board of Directors in 2015.

Mark is the inaugural Chair of the Qld Digital Economy Industry Collaboration Group, involving a range of industry groups that are supporting their constituents in the adoption of digital business.

References

http://www.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2013/03687--13--nat--essential-director-update-2013_internal-pages-final.ashx

https://aicd.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2014/04372-3-evt-essential-director-update14-jun14-handbook_a4-46pg_web.ashx

http://www.companydirectors.com.au/~/media/resources/director-resource-centre/publications/books/pdfs-various/essential-director-update-2015_final-sitecore.ashx

http://aicd.companydirectors.com.au/~/media/cd2/resources/events/essential-director-update/PDF/05496-6-EDU16-Handbook_WEB_v6

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