The first option to consider is hiring Directors with the Digital/ICTcapability who can inject their unique perspectives into your Boardroom.
As covered in our first article, this should not be at the cost of
the corporate governance skills that all of your Directors should have.
You should focus firstly on the general IT/digital skills listed in our last article. If you feel you have these covered, then you could also consider
specialist IT skills that your organisation will be focusing on over the coming
years.
The benefit of hiring is that there is no better learning than on
the job learning. So having someone with good IT/digital skills can bring
insights and perspectives that can help your entire Board to lift their own
capabilities in this area. If you choose well, you may get someone willing to
spend some time outside of the boardroom with your other Directors, to accelerate
their learning. This is a good step to
building long term capability in your Boardroom. Remember though, that
depending on your Board culture, and the size of your Board, having one person
on their own to quickly change the perspective of your Board, may be asking too
much.
The next option is the active development of your existing skills.
There are multiple ways of doing this. On the job learning is one way
through increased dialogue and discussion at the Board table, and increased
discussion and information papers or presentations from the executive
team. As already mentioned, having Directors with more IT/digital savviness can
help uplift everyone, either through Board discussions or discussions
outside the Boardroom.
Additionally, there are significant opportunities for external training and
education. The AICD is one such body with increasing amounts
of IT/digital education for Directors. Another option is coaching and mentoring for some
Directors. If you have strong skills on your
Executive team then building opportunities for high value contact time between
specific Directors and Executive can be helpful.
Skills development should be adopted by all Directors, as part of their
continuous learning. And there is no better area to invest time than in
IT/digital, given its changing landscape.
The third option is to extend the Board’s consideration of important or
challenging matters through Board Committees or Advisory Boards. This
will be organisation specific, as one topic could be challenging for one organisation, but easy to deal with for a different organisation.
This approach gives you flexibility to involve Directors (due to their special
knowledge or interest, or to support their growth), Executive (due to their
role, special knowledge, or to support their growth) and external advisors or
experts.
Sometimes Boards may use Committees or Advisory Boards to assess candidates
for future Board vacancies. For those Directors or Chairs concerned about
whether bringing in IT/digital skills means sacrificing basic corporate
governance skills, then this could be a good testing ground.
Where you have existing Board Committees (eg Risk
Management, Remuneration etc), it is prudent to consider how the IT/digital
landscape may change their scope and role. And in doing so, do they have
the skills and capabilities to deliberate on this expanded scope. For
example:
- Does your Risk Management/Audit
Committees also cover Security/Privacy? How would this change the
operation, make-up, reporting?
- Does your
Nominations/Remuneration Committees also cover IT/digital skill needs and
recruitment/retention strategies? Have you got the skills on that
committee to understand current and emerging needs in this area?
The final option to consider is consultancy or advisory input. This
could be used to accelerate the improvement in general IT/digital skills across
the Board.
It could also be used for specific topics that may be of
interest from time to time. It could take the form of research and
discussion papers, presentations, hosted discussions, and guest presentations.