Yesterday I read the Board Agenda 2017, top priorities for boards and audit committees in Europe, published by EY [Ernst & Young]. This Publication contains eight important items for the board in 2017:
- Geopolitical risks: About Trump, Brexit and another political things, changing the world.
- Digital Transformation: Is your corporation ready for the digital transformation?
- European Union (EU) audit reform: This part is exciting for european boards: Is your board ready for Audit Reform?
- Tax risk: About the risks, paying to much taxes.
- Corporate compliance and culture: How developed is your corporate culture?
- Talent Management: Where to find new talents? Does your corporation have a good will?
- Corporate social responsibility: Does your corporation meet the regulatary framework, or are you working ethical?
- Investor Relations: How does your corporation comunicate with its investors?
This list is great work and has all the items, I would talk about, too. But I miss one (main) Topic, which has strategic implications: The relationship between all topics!
Stop making lists!
Lists can help: They make one feel, to meet all the topics. But they can pretend a wrong safety. The items, EY has correctly identified, must be in a relationship. In this case, a visualization could look like this:
When we take a look at the digital transformation, it is one of the main topics, the corrporations are concerned about. To reach new goals, they need an innovating company culture, which promotes individuals. Additionally a good failure culture would be helpful. No director is able to command creativity (They can…. but it wouldn`t help). It is only possible, to build up a correlated company culture.
The tasks are making a framework for surviving the changes, coming the next years. A list point like „Digital Transformation“ suggested, it would only be a release. Remember:
But there are more implications: the war for talents has already started. The companies can try, to hire them. But without the right support, the talents will not stay.
So the board has two main topics in the next years to work at: to handle the techniacally tasks (like the European Union (EU) audit Reform) and helping to transform the company in this way, that we have a culture, everybody wants to stay. And this culture must be live by the top management and not to be commanded.
German version can be found here.