Advancing the Board’s Role in Digital Transformation

Boards and their companies operate in an increasingly digital world. Every director should have sufficient digital understanding to engage in strategic conversations with the CEO, other company leaders and other members of the board.

Embracing digital capabilities is a mindset that emphasizes a commitment to adapt continuously in the face of change and respond to customers’ increased desire for products and services that meet their evolving needs. As markets continue to evolve, is the value contributed by the board keeping pace? Is board composition refreshed to reflect the times? Do the board’s experience, skill sets and capabilities enable it to engage meaningfully with the CEO and management team?

One of the top trends that will have the greatest effect on companies over the next 12 months — as noted in a recent survey of public company corporate directors issued by the National Association of Corporate Directors (NACD) — is the increasing pace of digital transformation. The digital era is fostering an environment in which each director should be knowledgeable about the enabling technologies that will impact the industry over the long term, resulting in new business models, transforming customer experiences, and driving operational efficiencies and innovation. A sufficient digital understanding enables directors to contribute to capital allocation and strategic conversations around digital initiatives and thinking.