The Importance of Digital Literacy for Board Directors
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Board Directors are responsible for providing direction to the strategy, direction and performance of a business. They also have the responsibility of representing the interests of shareholders and making sure that management delivers value. To accomplish this, boards must determine what duties they are accountable for and what tasks can be legitimately delegated to management.
They also have a say on important strategic issues like mergers and acquisitions, stock splits and share repurchases programs, and dividend declarations. They are also responsible for hiring and firing CEOs, as well as the determination of the amount of compensation senior executives receive. To do this, they need to be ready to ask tough questions and engage in constructive debate. They are also responsible for ensuring that the company’s finances are in order as well as the compliance with laws and ethical standards.
A successful board member is capable of analyzing complicated issues and offering insights to improve the effectiveness of the board. They also foster a culture of collaboration and communication in the boardroom. They have a profound understanding of the business in which they operate and are able to provide valuable advice.
As the world around us is becoming more complex, so too do our corporate responsibilities. The COVID-19 pandemic has taught us that we must improve our speed and agility to keep up with. In the aftermath many boards have widened their scope of responsibilities and are focusing on topics such as developing talent and culture sustainability, resilience, sustainability, risk management, as well as technology and digitization. To be able to do this effectively boards must be digitally proficient and prepared for the increased level of involvement required to deliver forward-thinking agendas.
