Boards can reduce the amount of time they spend on routine tasks for more focused and strategic discussions that will lead to better decision-making and outcomes if they adopt technology – and AI in particular. For example, AI can read, review and validate financial reporting, which in turn will free up capacity for more in-depth discussion and decision making. Equally, by analyzing large volumes of data over time, AI can quickly establish trends and patterns that would have taken years to uncover due to the scope, speed and scale improvements that AI brings.
2. Diversity at the board level can bring in the skills needed to navigate business transformation
Surprisingly, given the almost daily diversity debate in the global media, boards are not convinced of the need to evaluate board composition and augment skill sets. Just 30% believe this would improve their risk-management oversight.
Family enterprise boards could do more to embrace talent across a more diverse spectrum. Only 31% of the 500 largest family businesses worldwide have a female family member on the board and the majority (54%) of those that do hail from Europe, followed by the Americas (30%).
To reflect the organizations and societies they serve, boards must, by design, seriously consider their current and future composition. It is not just the ethical thing to do – it also translates to greater commercial success.
“At some point between 2035 and 2040, we will reach the time when the majority of people in the US are people of color,” says Herman Bulls, Board member at USAA, Comfort Systems, Host Hotels & Resorts and American Campus Communities. “If you don't have that diverse perspective in your boardroom, you’re not going to be as effective and therefore competitive going forward.”