QUICK ASSESSMENT OF BOARD MEMBERS TECHNOLOGY AWARENESS
It is imperative that board directors possess a fundamental understanding of technology and its influence on strategy in order to make well-informed decisions. Without such knowledge, directors may make decisions based on incomplete or misunderstood information, resulting in poor outcomes. Therefore, it is essential to assess the technology capabilities of the board to identify any gaps in skills or experience.
One effective way to enhance the board's technology proficiency is through training programs. While it is common to have a Chief Information Officer or Chief Digital Officer on the board, their effectiveness is limited if other directors lack the necessary knowledge to make informed decisions. A Digital Director can play a critical role in educating and counseling the board, as well as recommending external training opportunities and consultants to help elevate directors' knowledge and confidence in making technology-oriented strategy decisions.
It is also important to have a director with a solid understanding of general management and strategy who can engage in discussions about technology trends and oversight. While having a "technologist" on the board can be beneficial, many directors find such individuals too technical or jargon-heavy to understand. Instead, a director with a strategic mindset can contribute to board discussions by asking insightful questions, developing decision-making frameworks, and informing other directors about the implications of new technologies.
The board should also regularly discuss technology disruption and digitally-driven opportunities, and management should present digital and technology roadmaps to spur conversation. It is crucial to understand how competitors are leveraging technology and to have someone tasked with tracking competitive technology moves or initiatives.
Finally, the board should follow up on digital and technology initiatives to ensure that they deliver the promised value. Regular reviews of strategic initiatives and lessons learned can help the board make informed decisions and react appropriately to favorable or unfavorable outcomes.
In conclusion, technology has an outsized impact on every industry and company, and board directors must possess the necessary knowledge, skills, and processes to identify strategic opportunities that will work for the company. By assessing the board's technology capabilities and implementing training programs, having strategic-minded directors, and regularly discussing technology and its implications, the board can make well-informed decisions that drive business success.
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