Top tips for boards in 2023
Boards need to be agile, capable and effective, now more than ever, to grab new opportunities and to manage emerging risks. Adopting best practices can dramatically streamline your board’s operations and equip it to respond to an ever-changing corporate landscape. We share seven top tips for boards to tackle 2023’s most pressing challenges.
1. Stay on top of new risks, opportunities and the best approach
It’s proving to be a volatile year with good governance crucial for boards to navigate current and emerging uncertainty. Good governance not only creates a solid foundation for effective oversight but also builds trust with stakeholders.
As regulatory and legislative requirements continuously evolve, keeping pace with best practice is a challenge. One solution is to join industry forums and subscribe to relevant newsletters (such as Diligent’s), will ensure you’re in tune with the ever-changing corporate landscape.
2. Keep shareholders and stakeholders top of mind
When identifying and striving for board management governance goals, stakeholders should be front and centre of mind. This doesn’t just mean investors – other major stakeholders are increasingly vocal about the issues they believe organisations and their boards should prioritise.
Regulators too, are scrutinising conduct and the actions and omissions of Australian businesses. The corporate regulator ASIC has used its enhanced powers to begin civil proceedings against a company for alleged greenwashing – with others also in their sights in 2023.
3. Cultivate an agile approach…
The need for corporate agility, which came to the fore during the COVID-19 pandemic, becomes even more vital in a recession. With global recession predictions slated for 2023, boards need to engage cross-functional and self-organised teams to rapidly learn, adapt and evolve alongside stakeholder needs.
Adopting digital and analytical board tools is a vital step to improving board agility. The right technology empowers boards to quickly and efficiently access critical insights that foster deeper understanding and diverse business perspectives.
4. …and an adaptive board
Agility is as vital within your board as across the wider organisation. The best boards recognise when they need external expertise, drawing on skills honed outside your sector. Flexibility is one of the top board management tools in 2023. The best boards recognise when they need external expertise, drawing on skills honed outside your sector. They keep an eye on current trends like specialist board technology committees to help them tackle changing risks.
5. Challenge your diversity of thinking
Diversity of thought delivers strategic advantages and is the basis of an ethically-sound company. So how do you structure a board? Leaders should aim to:
- Provide a diverse range of thinking;
- Explore the benefits of reverse mentoring to leave behind old thought processes;
- Question whether there are barriers to equality on your board and ensure your succession planning techniques promote a diverse board pipeline.
6. Get on top of governance
Whether it’s separating the roles of CEO and chair or ensuring a robust audit trail for board decisions, best practice GRC should be a key focus of every board.
Running more effective board meetings is a core element of good governance. By sharing information in a timely manner, decisions can be made and executed with 360-degree vision while meeting compliance standards.
7. Explore all routes to a more efficient board
Running effective board meetings benefits more than just governance processes. Board directors are busy people who often balance multiple responsibilities and roles. Efficiency is key, which is why using the right technology is a top tip.
Board management software is a useful tool for facilitating collaboration, streamlining meeting organisation and bolstering security while cultivating data-driven decisions.
Implement best practices to accelerate your board management
Board management is an evolving craft. However rigorous your approach, constantly seeking higher standards is a positive discipline that provides a solid baseline for boards seeking to challenge themselves.
Diligent is the global leader in modern governance, providing SaaS solutions across governance, risk, compliance, audit and ESG. Learn more at www.diligent.com/au.