Change is a part of the world. However, there are times when the world changes so drastically that the old ways of doing business no longer work. Many experts from a variety of fields believe that we are in one of those times right now.
What is the role of the board during times of change like these? Board members are responsible for helping the company navigate the turbulent waters of change. A Board of Directors with the right attitude can make the difference between success and failure during such times.
What Does A Successful Board Of Directors Look Like During Times Of Change And Chaos? There Are Five Essential Behaviors These Organizations Exhibit. The Best Boards Will:
1. Lead By Example
The Best Way To Adapt To A Changing Environment Is By Learning. When Consumer Behavior, Economics, Global Markets, And Regulations Are In Flux, The Best Move Is To Take A Step Back And Evaluate The Situation Intelligently. Board Members Should Be Asking The Tough Questions And Guiding Their Company Through A Search For The Answers.
2. Be Bold, But Not Impulsive
When The World Seems To Be Changing Before Your Eyes, Many Boards Will Feel Tempted To Do Anything To Give The Impression That They Are Proactive. A Time Of Change May Be The Time To Take Bold Action But Consider Every Move Carefully.
3. Keep Your Eyes On The Big Picture
Even The Biggest Crisis Won’t Last Forever. Right Now, The Future Is Uncertain For Many Businesses. Don’t Think Of This As A Setback; Consider It An Opportunity. Companies Can Take This Time To Re-Evaluate Their Priorities, Set A New Course For Their Operations, Or Even Change Their Core Characteristics. Bold Actions Like These Require Creative, Intelligent Leadership, And It All Starts With The Board Of Directors.
4. Rely On Data, Not On News
News Of Current Events Is Often A Generalization Of A Few Key Examples – Often These Can Be Portrayed More Or Less Severely Than Reality. Use Data Specific To Your Company And Your Industry To Determine The Impact A Time Of Change Is Going To Have And What You Should Do About It.
5. Create Creativity
Sometimes, Difficult Challenges Require Creative Solutions. While The Board Of Directors May Not Lead The Way With Innovative Solutions, It Is Up To The Board To Create A Culture Where Creativity Is Encouraged And Rewarded.
When The World Changes Around Us, The Old Ways Of Doing Business May No Longer Work. In A Time Like This, It’s Up To The Board To Set The Tone For The Entire Organization. During A Time Of Unprecedented Change, The Role Of The Board Is To Focus On What’s Essential As A Business Moves Into The Future.
Patrick Coggins & Rahul Merani