Over the past year, the board of directors’ priority has been to support the management team to navigate the Covid situation as good as possible. Depending on the business, this resulted in a positive or a negative impact, but in both cases, it led to an unusual situation that required empathetic counselling from the board directors and sparring with the management.
Crisis management experience
As in all crises, there is a big part of uncertainty. Having sailed in rough waters in the past is a valuable asset to help manage the current situation. Economic and societal shocks like 9/11, the dot-com bubble in the late 90s or the subprime crisis more recently have forged some strong skills among board directors. Their experience can be of a great help when it comes to business-continuity planning or fast-shifting the current strategy.
Board talent diversification
Exceptional situations require exceptional solutions to be found. This couldn’t be more appropriate for the challenges that companies have been facing. The crisis brought some of them to very creative solutions to face the unexpected. Crisis management talents in all aspects have emerged and have proven their added value. It was about time already to bring diversification to the board, and if any positive consequence of all this, it definitely is the sped-up introduction of these new profiles at board level.
Support and challenge – the right middle ground
Even if the board of directors might be perceived as quite financially focused, it is much more than that. Its first goal is to ensure both shareholders’ and stakeholders’ interests are defended. Of course, the financial stability of the company plays a big role as the operational management of the risks does. When in crisis, these are the fields where decisions have to be taken quickly. But next to these operational aspects, the board of directors also needs to keep the long-term vision of the company in mind. The vision remains of capital importance, even if the strategy must be adapted.
The crisis could become a perfect moment to make a shift, launch a plan to be ready for the rebound after the pandemic.
Board Governance and the NWOW
The pandemic didn’t only bring negative things. We already see companies reinventing themselves, taking the lessons learned from the crisis to shift their purpose and their value proposition. The crisis has somehow revealed their weaknesses, urged and imposed temporary new ways of working (NWOW), that are about to become permanent.
Remote working is one of the best examples that is applicable to a large number of companies. The same goes for board governance matters. Modern tools enable people to get their work done remotely, sometimes in an even better way than in the office.
Tons of SaaS tools have improved or have been created to respond to the needs of this NWOW. If they can’t replace all the benefits of the way a company used to work successfully before the pandemic, it can at least simplify the new way of working and it might even improve and reveal some crucial advantages that helps manage the various aspects of the company.
Collaboration has embraced a whole new dimension with the distance, and information consumption through all channels and sources has increased dramatically.
As time is a scarce asset for most directors of the board, it becomes even more important to adapt the way the board of directors focus its attention on what matters.
What’s more, leading by example has proven to be very effective when it comes to change management in general. As a result, boards who adopt the right weapons fitting their needs are more likely to be the example the company in transformation and are better prepared to win the battle in the post pandemic world.
Digital Boardroom: A Norm in the New Normal
In this era of transformation, digital solutions are at the core of efficient and productive board operations. As companies worldwide embrace the 'New Normal,' the concept of a digital boardroom is becoming more appealing. Companies are turning to board management software like Govrn to facilitate remote meetings, secure file sharing, task tracking, and much more.
These digital platforms empower board members to participate in meetings and discussions, access necessary documents, and make informed decisions, regardless of their location. Board management software not only fosters flexibility but also ensures continuity and efficiency in board governance.
Enhancing Board’s Effectiveness with Data-Driven Insights
With the pandemic-induced changes and a surge in remote operations, the need for reliable and actionable data is more crucial than ever. In this regard, board management software can play a vital role. Govrn, for example, offers data-driven insights that can inform strategic decisions, providing a comprehensive view of the organization’s performance.
With these tools, boards can quickly adapt to the shifting business landscape, respond to new challenges, and identify opportunities, making them more resilient and agile in the face of uncertainty.
Conclusion: The Future of Board Governance in the 'New Normal'
The COVID-19 pandemic has forced companies worldwide to reevaluate their operations and strategies. The board of directors, as a central governing body, is no exception. The crisis has underscored the need for a diverse and experienced board, capable of making quick decisions and guiding the company through unprecedented times.
Embracing the 'New Normal' has led boards to rethink their traditional methods and adopt more flexible, digital, and data-driven approaches. Tools like Govrn's board management software are paving the way for this transformation, facilitating secure, efficient, and inclusive board operations in the digital age.
The post-pandemic world is still emerging, and companies must continue to adapt and innovate. The resilience, adaptability, and creativity demonstrated by the boards during the crisis will undoubtedly continue to serve as a beacon in navigating the future. As we move forward, one thing is clear - the board of directors’ role in the 'New Normal' will be anything but 'business as usual'.
