Why You Should Worry About The Lack of Tech Knowledge in Your Boardroom

Technology is rapidly changing the rules of business and totally reshaping industries across the board. Technology innovations have become a necessity for any organisation that wants to stay in the game; now more than ever. Unfortunately, many organisations still won’t give much thought to technology and are still using outdated systems. This of course, leaves too many organisations vulnerable to technology-fueled disruption. As hotels across the world continued to do business in the same old fashion, AirBnB came in and has revolutionized the way we travel. With such disruptive businesses that are changing they way we live and do things, consumers are now expecting more from businesses, where technology is concerned. Consumers now expect instant service delivery. Is your company ready for this?

Despite the mass disruption that technology is making in business, very few organisations are taking it as seriously as they should be. A recent survey by the Harvey Nash Alumni, in association with London Business School’s Leadership Institute found that only 14% of the survey participants had boards with a fully comprehensive digital strategy. Another report by Accenture studying banks around the world found that less than 6% of boardroom members and 3% of CEO’s at these banks possess professional technology experience. In other industries, the US has 15.7%, UK 14.3%, Australia 8.1%, Japan 7.5% and Germany 7.4% of boardroom members with technology experience.

These numbers are worrisome because it’s the boards’ responsibility to shareholders to reduce risk and envision new opportunities for the organisation to gain or sustain a competitive advantage. Without tech knowledge, how can a board make an educated decision on which new technology to implement and how to leverage it for new business opportunities.

Ponemon Institute conducted a survey that found that 80% of boards don’t get any reports regarding their company’s cyber security strategy. This means that they’re completely clueless on cyber-attack risks. How then will the board protect the organisation from cyber risk if it does not have knowledge about it?

Getting your Boardroom Ready for a Digital Disruption

It’s important that boards have a clear understanding of how technology is impacting business. From operations to revenue generation as well as the new risks that it opens up including cyber-attack and security breaches. So how do you ensure that your board is ready for any new technological advancements?

1. Have a Technology or Digital Expert in the Boardroom

Make technology a priority in your board’s agenda. Begin by having one or two technology experts in the boardroom who will take lead in changing boardroom culture and help board members to better understand the risks and opportunities that technology provides. The CIO in this case would be a great addition to the board. CIO’s are in a good position to initiate and steer the digital conversation.

2. Provide Technology Coaching for Boards

Having a technology expert in the board is not enough. The rest of the board also needs to have at least some technological understanding. Provide your board with coaching programs that will give them insights into the technology landscape and how it aligns with business goals.

3. Create a Technology Advisory Board or Committee

An advisory board that has tech experts is also a great way to warm up the board into having a full time tech board member. An advisory board allows you to gain insight from individuals who possess varied relevant technology expertise. A committee with internal and external experts can effectively advise the board on technology issues.

A board that is willing to see the “big picture” and is in support of innovation from within the organisation will definitely not be caught unaware by the digital wave!

CREDIT: Kylie Hammond