I read an article recently, written by Hugo Sarrazin and Paul Willmott at McKinsey & Company, that I thought would be of interest to the readers of this blog. It resonates with my past posts about getting the software value message right to the top of the organization. The article was titled “Adapting your board to the digital age."
Who can argue with recommendations to make board members more informed about the development of technology solutions? I particularly like, “Board members need better knowledge about the technology environment, its potential impact on different parts of the company, and its value chain.”
I would have liked to have seen more stress on the importance of the board being focused on the value delivered by digital transformation. Some of the recommendations (such as having technology committees) could be seen as sufficient in themselves, which they are not. I’m sure that if the board has a “balloons” committee then the company will end up spending more on balloons, even if that is not going to increase the value of the company.
My recommendation to boards? Follow most of the good ideas in this paper, but beware of “digitization” for its own sake. Start and end with business value!
Read, “Adapting Your Board to the Digital Age,” here.