The Boards´ new challenges
Businesses face a colossal challenge out of a complex context; its future outcome will directly result from the Board’s understanding of their industries, the impacting trends, and the policies they implement.
Companies underwent the pandemic by adapting their businesses with new strategies to promote transformation and growth. After that, the Boards hoped to develop its businesses facing the so-called “new normality.” Unexpectedly, their expectations collapsed. The present is unstable and difficult to apprehend, and the future is, more than ever, unpredictable. As a result, the world has entered a new era, and consequently, companies will have to change their strategies to ensure resilience and sustainability.
The economic concerns are outraged by geo and socio-political tensions. This context requires agile and effective responses from the Board and senior management. Those who do not get them will lose competitiveness, threaten their future, and fail.
In the medium and long term, a more fragmented, “re-globalized,” and climate change-impacted world is ahead. Changes will accelerate, and technology will be more disruptive. That will be the new “new normal.”
Boards will continue to be responsible for ensuring that the company is profitable and sustainable, establishing a culture that emphasizes solid strategic objectives, ethical standards, compliance, and resilience.
Transcendent leadership will be a must. Transcendent leadership will require increasingly capable, involved, well-informed, and agile Boards, able to articulate the interrelationships between long-term success and the interests of shareholders, customers, employees, and other stakeholders. Moreover, they ought to be involved in the execution.
In summary, as we advance, an excellent Board and senior management governance will acquire an unusual relevance for the company. Its final success or failure will depend on it.