20 Aug 2021
Directors of Boards are always stretched between stakeholders expectations and Company’s growth and survival strategies. Is Business Strategy, technological Innovations, Volatility of Markets and Future Business Impacts being discussed as frequently as required by the Boards? These topics are often neglected or not considered adequately in Boards.
The core function of Board is to ensure the future of its business taking into consideration the best returns for the society in large. In today’s VUCA world the need to embrace change and Innovation is the key to success for any business. Focusing towards the beacons amidst the gust of transformations, judging and analysing the opportunities by developing apt strategies is the key to catastrophic impact. Boards doing a little bit of creative forecasting and keeping an eye on what is coming in future may help enable your company to be the disrupter, not the disrupted.
For the modern day director, remaining aware of external environment and changing industrial regulations to be abreast with potential threats or disruptions so that it can be addressed and resolved impromptu is the key challenge. Herein an Entrepreneurial mindset of the Director helps the Board with a different perspective towards handling and approaching the situation. A properly managed process driven boards will forecast future potential threats, opportunities and business expansion models. Entrepreneurs need to be able to face failure with confidence to harness the energy required to persevere. The latest trend, however, is adding someone with an entrepreneurial background to your team of directors to get the risk bearing and decision making perspective to the Boards.
As the famous saying goes: Can you sleep while the wind blows? This is moreover true for Boards in current scenarios. there are many hurdles an entrepreneur must launch themselves over and hence it’s very important for each one to contribute as per the skills they are hired for. Courage and a calculated strategy to capitalize off an idea grand enough to meet a need and compete with contenders in the market are what entrepreneur boards bring to the economy when they are successful. Perseverance and Resilience are the key factors of such Boards to keep them going in a long term. The failure to handle certain challenges teaches the Board members, lessons which can enable success when applied to future actions.
Entrepreneurs’ vision, who are well-versed in risk management or short term operational guidance to the board, sets the picture clear for the goals which are desired to be achieved in long term and short term. Very often, boards are looking for people who have had tremendous experience as CEOs or CFOs of large, global, and complex organizations but restrain to hire a visionary entrepreneurial candidate who can provide a holistic view to the business of the company. This isn’t to say that an entrepreneur will always be right about their theories or suggestions & perspectives, but their presence alone will force some conservative members of the Board to tackle out-of-the-box thinking, if any. Entrepreneur directors are associated with higher R&D investments and sales growth. Hence, today, more and more boards should look around the Directors having entrepreneurial mind-set to drive faster & sustainable growth.
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Disruption is the key to future growth and success…Is your Board READY?