27 Oct IT or digital capability on your Board or governing group. Do you need it? Why?
When presenting the 2013 Essential Director briefing, at the Wesley Conference Centre in Sydney, Alan Cameron said: “IT is now such a critical issue that failure to monitor and govern it properly is likely to be a failure of the director’s basic duty of care and diligence”.
Year
|
Total Pages
|
Dedicated to IT/Digital
|
|
Pages
|
%
|
||
2013
|
51pp
|
5.5pp
|
11%
|
2014
|
48pp
|
8.5pp
|
18%
|
2015
|
38pp
|
8 pp
|
21%
|
2016
|
39pp
|
6 pp
|
15%
|
2017
|
43pp
|
4 pp
|
9%
|
2018
|
58pp
|
2.5 pp
|
4%
|
2019
|
47pp
|
2 pp
|
4%
|
One objection that has been stated by some very experienced Directors. It is that bringing in “special” skills like IT onto a Board comes at the cost of “traditional” skills, like being able to read financials or understand risks. In my opinion, this view is a little misplaced for a few reasons. Firstly, it sounds like they may have experienced a less than optimal Director appointment process. Perhaps there was a requirement to populate the Board with only a relatively narrow range of capabilities and without sufficient diversity. That can happen. Not having the minimum mandatory skills to be a Board member should never be sacrificed, and shouldn’t have to be. However, the ideal Board composition should contain enough diversity of skills and backgrounds to adequately address all the challenges that the organisation faces, and of course this should include IT. There are many capable people out there that have the basic competency requirements as well as that of ICT/digital.
Bookselling, then publishing then retailing and more………………..Amazon
Video entertainment……………………………………………………….Netflix
Music entertainment………………………………………………..iTunes, Spotify and Pandora
Movie production ……..……………………….. ………………Pixar (bought by Disney)
Photography…………….…………………………….Apple, Samsung plus Shutterfly, Snapfish and Flickr
Advertising…………………………………………………………….……Google
Direct marketing …………………………………………..………….Google, Groupon
Telco……………………………………………..……………….………….Skype
Recruitment Company ….………….……………………………………..LinkedIn
Taxi/Personal transport…………………………………..…………………Uber
Accommodation………………..……………….…………………………..AirBNB
News media…..…………………………………….…………….Google, Facebook, Apple
References
http://www.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2013/03687–13–nat–essential-director-update-2013_internal-pages-final.ashx
https://aicd.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2014/04372-3-evt-essential-director-update14-jun14-handbook_a4-46pg_web.ashx
http://www.companydirectors.com.au/~/media/resources/director-resource-centre/publications/books/pdfs-various/essential-director-update-2015_final-sitecore.ashx
http://aicd.companydirectors.com.au/~/media/cd2/resources/events/essential-director-update/PDF/05496-6-EDU16-Handbook_WEB_v6
https://aicd.companydirectors.com.au/-/media/cd2/resources/events/essential-director-update/2019/pdf/07346-6-EDU-2019-Handbook-A4SP-4a.ashx
https://www.wsj.com/articles/SB10001424053111903480904576512250915629460