Will board effectiveness improve in 2019?

With 2018 consigned to history and holiday season break all but over, most business leaders and boards of directors are turning their attention to what the year ahead (and beyond) holds. Even a cursory glance reveals a plethora of issues that may have an impact on business continuity and, potentially, continuance. 

Consider these indicators:

• ​Rampant economies that have powered much of the global growth over the last decade may be running out of steam. Many Asian 'tiger' economies are growing less rapidly than before, Apple and other tech giants have issued warnings, indicating that a correction may be just around the corner.
• Populism and nationalism are no longer words heard only in political and academic hallways.
• The climate is changing.
• Medical and social developments are impacting the lives of untold millions around the world.
• Disruptive technologies and business models are fundamentally changing commerce.
• Weaponising of biological 'forces' to reshape nations, economies and mindsets.
  
• March 29, 2019 is shaping as a watershed date for Britons and Europeans in particular, but also others.
• The US-China trade war and disquiet in the Middle East have the potential to disrupt international trade.
• The emergence and potential impact of identity politics and various lobby movements (#MeToo and #GilletsJaune are two examples amongst many).
• In several countries, general and/or local government elections are occupying the minds of many.

And that's just the start.

As is usual at this time of the year, business and governance commentators have stuck their collective necks out, promulgating a variety of predictions given the indicators (as real or imagined as each indicator may be); each behaving as if they possess levels of predictive insight beyond what a reasonably educated person might be able determine by tossing a coin. But do they? They cannot all be correct—in fact, none may be. 

The challenge for boards, of course, is working out how to respond well. 

What is becoming increasingly clear is that boards have become confused by what's going on around them. Increasing numbers have grown quite tired of 'conventional wisdoms' and so-called 'best practices' (plurals intentional). Some have responded by taking defensive positions, and others are boldly trying things without first understanding the contextual relevance.

My response to enquiries from boards is straightforward: open your eyes to the possibilities, think and act strategically, but don't be impetuous. Check the current context, because things change, often in unexpected ways. Helping boards respond well typically involves sharing insights from research and practice; facilitating discussions; and providing contextually-relevant and evidence-based guidance. If you want to discuss options to respond well to a changing world around you, or lift the effectiveness of your board, please get in touch.