{"id":9100,"date":"2020-02-26T15:47:57","date_gmt":"2020-02-26T14:47:57","guid":{"rendered":"https:\/\/avs-advisors.com\/?p=9100"},"modified":"2021-09-28T17:52:59","modified_gmt":"2021-09-28T15:52:59","slug":"digital-board-members","status":"publish","type":"post","link":"https:\/\/avs-advisors.com\/fr\/digital-board-members\/","title":{"rendered":"Digital Board Members"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8vgb1o-6917258f33da21f07e60183664e54de0\">\n.flex_column.av-8vgb1o-6917258f33da21f07e60183664e54de0{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-8vgb1o-6917258f33da21f07e60183664e54de0 av_one_fifth  avia-builder-el-0  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div av-zero-column-padding '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" 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srcset=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-153977964_150x150.jpeg 150w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-153977964_150x150-80x80.jpeg 80w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-153977964_150x150-36x36.jpeg 36w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-153977964_150x150-120x120.jpeg 120w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63\">\n.flex_column.av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63 av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div av-zero-column-padding '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-b5e49c2e2ba7cd5aad2a8b94b5ea0df8\">\n#top .av-special-heading.av-av_heading-b5e49c2e2ba7cd5aad2a8b94b5ea0df8{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-b5e49c2e2ba7cd5aad2a8b94b5ea0df8 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-b5e49c2e2ba7cd5aad2a8b94b5ea0df8 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-b5e49c2e2ba7cd5aad2a8b94b5ea0df8 av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_before_av_heading  avia-builder-el-first '><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Digital Board Members<\/h1><div class='av-subheading av-subheading_below'><p>A do\u2019s and don\u2019ts guide for traditional Boards<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-07ea8ed1f6a5e37f9555086185a5a136\">\n#top .av-special-heading.av-av_heading-07ea8ed1f6a5e37f9555086185a5a136{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-07ea8ed1f6a5e37f9555086185a5a136 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-07ea8ed1f6a5e37f9555086185a5a136 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-07ea8ed1f6a5e37f9555086185a5a136 av-special-heading-h5 blockquote modern-quote  avia-builder-el-4  el_after_av_heading  el_before_av_font_icon '><h5 class='av-special-heading-tag'  itemprop=\"headline\"  >by Carolyn Lutz and Nick Harris<\/h5><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a\">\n.av_font_icon.av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a .av-icon-char{\nfont-size:40px;\nline-height:40px;\n}\n<\/style>\n<span  class='av_font_icon av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a avia_animate_when_visible av-icon-style- avia-icon-pos-left av-no-color avia-icon-animate'><span class='av-icon-char' aria-hidden='true' data-av_icon='\ue819' data-av_iconfont='entypo-fontello' ><\/span><\/span><br \/>\n<section  class='av_textblock_section av-k61ywyoh-aa80164a0bbcfe1a68ac25d8daf20471'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Several editions ago, we had the privilege to interview Frits van Paasschen, who had just authored an insightful and compelling book on the challenges of technological disruption on established business models, \u201cThe Disruptors\u2019 Feast\u201d. Two lines that come early in the book make crystal clear the scale and speed of the challenge: \u201cThe digital revolution will make the industrial revolution seem like slow motion\u2026 If you don\u2019t think digital disruption is coming to you and your profession, you are deluding yourself.\u201d<\/p>\n<p>And in our last TTA edition, we looked at some of the challenges and benefits of improving (gender) diversity on Boards.<\/p>\n<p>In this article, we try to draw these two strands \u2013 diversity and digital \u2013 together, and investigate some of the do\u2019s and don\u2019ts for traditional Boards who want (need!) to become more future-oriented, diverse and digitally savvy.<\/p>\n<p>Many (most!) Boards of publicly traded, as well as family-owned businesses simply do not have a considered digital recruitment strategy, and do not fully understand how this talent pool thinks and behaves.<\/p>\n<p>It is critically important to understand that demand for digital talent, whether at the Board or management level, far outstrips supply. And whereas the common, safe assumption used to be that most senior executives would want to take on a Board role at some stage, it is not a given that digital talents want to become a director of even a bluechip corporate. The things that they value most in business life \u2013 autonomy, entrepreneurial freedom, openness and high frequency of communication, lack of hierarchy, quick decision-making, fast results \u2013 are qualities that they perceive (with some justification) to be lacking in larger or more traditional organisations. One well known digital entrepreneur we spoke to recently described the idea of being in a big group as \u201ctorture\u201d.<\/p>\n<p>Furthermore, digital talents approached for NED roles will often be sceptical that an organization really has the desire, particularly at the Board level, to undergo a necessary transformation or change programme. Even a cursory glance at the existing organisation can be enough to put them off \u2013 another digital leader we spoke to recently about their interest level in Board roles noted, in an incredulous tone, that most current NEDs \u201ccan\u2019t even be bothered to create LinkedIn profiles\u201d. What helps in attracting them is if they already have first-hand experience of a company\u2019s products or services, or can otherwise associate with an enterprise\u2019s brand or purpose. A \u201cmeaty\u201d Board mission or agenda \u2013 e.g. transformation, turnaround, expansion \u2013 is almost always viewed as being more attractive than a steady-as-she-goes trajectory.<\/p>\n<p>\u201cLike hires like\u201d is a well-known issue in recruiting. This inclination may still persist when \u201canalogue\u201d Boards look to bring in a digitally savvy Non Exec, but here the risk is that if they start a search process with that bias, they will likely end up hiring no-one at all. The reality is that digital natives often scare traditional Board Members because they do not look or behave at all like the existing NEDs. They are often (much) younger, (much) more outspoken, less polished, and used to greater autonomy. And their CVs show non-linear career tracks, and experience gained from start-up and entrepreneurial businesses rather than big corporates with well-known brand names.<\/p>\n<p>How they will interact on your Board, and what their expectations are of how the Board operates, may well be seen as challenging. It is interesting to note in this context that \u201cdigital\u201d hires to the Board over the past decade are much more likely to be female (25%), or born outside the country, than standard NED hires. This may be a case of Boards trying to tick two diversity boxes with one hire, or simply an indication that digital natives as a class are more heterogeneous, international and mobile than previous generations.<\/p>\n<p>Set against this context, we set out some \u201cDo\u2019s and Don\u2019ts\u201d for traditional or monochrome Boards on recruiting Digital Non Executives:<\/p>\n<p>DO<\/p>\n<ul>\n<li>Do be aware of why you are doing this: put simply, more diversity equals better decision-making.<\/li>\n<li>Digital Board searches need to go wider than those for traditional NEDs \u2013 looking at non-traditional functions, internationally rather than just in the local city\/country, and further down the organisation chart. Draw on a broader range of background, experience, skills and age to complement, rather than copy, the existing Directors. Contrary to received opinion, NEDs do not need to have been a CEO!<\/li>\n<li>Do hire more than one: the goal is to build a diverse Board, not to \u201ctick a box\u201d or make a token appointment. The evidence is now compelling that diverse teams are more effective. The Board should therefore be thought of collectively. The ideal composition is a blend and balance of different backgrounds and complementary experience.<\/li>\n<li>Do listen: digital NEDs can add strategic value to a business by virtue of their different vantage point \u2013 spotting new business opportunities that the Board would otherwise overlook (e.g. new customer interfaces, AI and machine learning, employee branding and engagement programmes, acquisition targets), and identifying threats that the Board may simply not be aware of (e.g. cyber security, reputational damage on social media, upstart competitors with disruptive technology).<\/li>\n<li>Do lead by example as a Board \u2013 a digital culture will not automatically cascade down throughout an organisation just because you appoint a new NED. All the Board Members have a role to play as cheerleaders and advocates for the company\u00b4s digital future.<\/li>\n<li>As a Board Chair: be mindful that you set not just the agenda but also the tone of Boardroom discussions, and the rules of engagement. You should devote conscious attention to ensure that all voices are heard, that there is sufficient time for questions and that discussions do not just skim the surface of a topic. With their more traditional Directors, the Chair may have to underline the credo that everyone has an (equal) say. With their digital NEDs, the Chair may have to coach on the communication style that is most appropriate and effective in such a forum (e.g. in plain English rather than overly-technical jargon or too fine a detail).<\/li>\n<li>It is also a good idea for the Chair to assign the new NED a mentor from among the experienced directors, to encourage learning (both ways) as well as bonding.<\/li>\n<li>Companies should ensure they have a comprehensive onboarding and induction programme for digital NEDs. Often a good hire has been lost prematurely not because they were the wrong person but because of early misapprehensions, poor understanding of stakeholder dynamics, and lost opportunities to demonstrate an early contribution.<\/li>\n<li>NEDs from specialist backgrounds should make a conscious effort to contribute to topics beyond their area of technical expertise. A Directorship should be viewed as a learning experience, and one which will make them better managers in their day-to-day roles.<\/li>\n<li>First-time Digital NEDs also need to be aware that a Boardroom, especially one of a publicly traded company, will function differently to the management meeting of an internet player. Corporate governance and operational management are not the same.<\/li>\n<li>And, as a final piece of \u201cdo\u201d advice, we would strongly recommend to aspiring Directors that they undertake a formal NED course with a well-regarded institution such as the IMD or INSEAD business schools, or the FT. This is great preparation, both as a primer for what good looks like in corporate governance, as well as a broadening training into areas such as finance, risk or HR that the executive may not have gained prior exposure to. It is also a signaller of intent that they are looking for a NED role and would take such responsibilities seriously. Lastly, being part of a NextGen NED class provides both good networking opportunities and a support community.<\/li>\n<\/ul>\n<p>DON\u00b4T<\/p>\n<ul>\n<li>Don\u2019t assume that digital is predominantly an \u201coperational\u201d topic that is beneath the consideration of a Board whose mandate is to outline the \u201cstrategic\u201d agenda. Digital is now fundamental and intrinsic to understanding the big picture; a corporate strategy that does not take digital sufficiently into account will be fundamentally flawed from the outset.<\/li>\n<li>Similarly, don\u2019t assume that digital is a topic \u201cjust\u201d for your new digital Director; everyone on the Board needs to work on their level of digital savviness. This is a trend that you cannot run or hide from forever. (Tip: Even a Chairman needs to know how to engage with social media \u2013 and to have a presentable LinkedIn profile!)<\/li>\n<li>Set aside preconceived notions that lead to hiring like-for-like: not all NEDs need to have served as a CEO of a large company. Not all NEDs need to have \u201cgrey hair\u201d. Accept and embrace the fact that a digital NED is likely to be younger and may have a career track that is a-typical.<\/li>\n<li>Don\u2019t hire just one: a lone voice and outlier \u2013 whether a digital native, or the only female NED \u2013 is too easy to ignore or side-line. It\u2019s also unfair on them \u2013 they run the risk of being seen only as a narrow, topic expert and not an equal. At best, you won\u2019t get the full benefit of their perspective. At worst, they will get frustrated and quickly leave. The composition of the whole Board needs to be carefully considered; this is a materially different exercise to merely swapping out a retiring NED for an identikit replacement.<\/li>\n<li>Related to the above point, don\u2019t assume that any one digital Director will be sufficient if the organisation requires a wholesale digital transformation. The digital universe is now so vast (e.g. social marketing, e-commerce, big data, cyber security, consumer privacy, FinTech, AI, etc.) that no one person can be a deep expert in all dimensions.<\/li>\n<li>Don\u2019t underestimate the impact of cultural or generational differences. The working and communication styles of digital natives may be very (sometimes radically) different. Improving the digital literacy of the Board will pay off for everyone in the long run but don\u2019t assume it will always be plain sailing or that everyone will speak the same language from day one. Traditional Directors will need to broaden their vocabulary, and expect more questions about \u201cpurpose\u201d, \u201cimpact\u201d, and \u201ccustomer centricity\u201d.<\/li>\n<li>Last but not least in this list of things \u201cnot to do\u201d, a piece of advice for first-time NEDs: do not compromise on your values and ethics, or surrender your independence of thought. You were hired for a reason, and \u2013 as easy and tempting as it may be to rubber stamp decisions \u2013 it is incumbent on you to speak up, to question, to propose new ideas. Diversity of opinion is critically important for a well-functioning and effective Board.<\/li>\n<\/ul>\n<p>It is worth restating that Board diversity should not be seen as a PR exercise. Put simply, diverse Boards are a proven driver of better decision-making.<\/p>\n<\/div><\/section><br \/>\n<div  class='avia-buttonrow-wrap av-k61ze9w6-f76018f3fb98b17a0aff0b6ac95eb808 avia-buttonrow-right  avia-builder-el-7  el_after_av_textblock  avia-builder-el-last '>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/fr\/trustedadvisor'  class='avia-button av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color'  ><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue830' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >back<\/span><\/a>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-b13918c18d3dec1865960404e654b6a6\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-b13918c18d3dec1865960404e654b6a6{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/wp-content\/uploads\/2020\/03\/TTA_2018_02_AvS-Digital-Board-Members_EN.pdf' class='avia-button av-av_buttonrow_item-b13918c18d3dec1865960404e654b6a6 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color' target=\"_blank\" rel=\"noopener noreferrer\"><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue82d' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >Download PDF<\/span><\/a>\n<\/div><\/p><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c\">\n.flex_column.av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  avia-builder-el-last  flex_column_div av-zero-column-padding '     ><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":7071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[53],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - 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