Styrelseakademi Strategic insights for boards
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The document summarizes a discussion at the Styrelseakademien (Board Academy) in Stockholm on October 21, 2019 about ensuring boards have sufficient insight into changing external environments. It notes that boards should focus on environmental scanning, innovation engagement for strategy formulation, and adapting direction based on resources. Presenters discussed tools for boards to gain insights, such as collaborating with startups and academics, and using networks and digital tools. Four scenarios for 2035 were presented to illustrate how boards can think about different potential futures. The discussion emphasized that boards need to avoid insular networks and practice scenario thinking to consider uncertainties.
Styrelseakademi Strategic insights for boards
- 1. Omvärldsinsikt för styrelser October 21, 2019 Styrelseakademien Stockholm StyrelseakademienOkt 2019 Moderator Liselotte Engstam Professionell Styrelseledamot, Forskare i styrelseprojekten OSIRIS, SISUBoards, 4Boards.ai, Nordic Chairmen Practices
- 2. Diskuteras djupgående/ofta Önskarspenderamertid på 50% 100% 40 % 20 % Lagreglering Extern Rapportering RiskhanteringStyrning & efterlevnad Hållbarhet Kultur, värderingar Succession, talanger Teknologipåverka n Strategi Kommersiella utmaningar, disruption Värdeskapande till ägare Ref: Ridgeway Partners 2018/ Forskningsprojektet SISU Boards/Digoshen 20192 “A diverse Board and a strong corporate culture. We are well positioned to achieve our strategic goal of driving profitable growth and building shareholder value." StyrelseakademienOkt 2019 Snabbt föränderlig omvärld ökar trycket på styrelser
- 3. OMVÄRLDSBEVAKNING – för ökad och snabbare marknadsinsikt OMSTÄLLNING – innovationsengagemang för förnyad strategiformulering INRIKTNINGSANPASSNING – beslut för resursallokering, förändring och agilitet Styrelsepraxis som bidrar till företagsförnyelse & innovation Ref: Forskningsprojektet OSIRIS /Digoshen 2019 StyrelseakademienOkt 2019
- 4. Professor Robin Teigland Entreprenörskap Chalmers, Strategi SSE 4boards.ai StyrelseakademienOkt 2019
- 5. Strategic Insights for Boards Professor Robin Teigland [email protected] @robinteigland StyrelseakademienOkt 2019
- 6. People • “Net generation” • 24x7 “mobile” workforce • Gig economy • Online learning • Sharing not owning • Sustainability Technology • Broadband/wifi • Cloud, fog • Internet of Things • AI/ML/DL/NN • Autonomous vehicles • Smart robotics • VR/AR/Holography • 3D/4D printing/ALM • Blockchains • Nanotechnology • Quantum computing Open Source • Software • Hardware • Physibles Convergence of….. Finance • Microlending/microfinance • Crowdfunding/equity/P2P lending • Cryptocurrencies, tokens • Blockchains, smart contracts • Mobile money and payments • M2M/R2R payments
- 7. Digital is the main reason just over half the Fortune 500 companies have disappeared since the year 2000. -Pierre Nanterme, CEO Accenture, 2016 Yet..Digital disruption has only just begun.
- 8. Companies progressing but leadership falling behind 4Boards.aiResearch; Understanding Digital Maturity – MIT/CapGemini 2018
- 9. Boards tend to overestimate their ”Digital Savviness” 62% of boards report they are digitally savvy Source: MIT CISR 2014 Board Survey, 81 companies. 24% of boards are digitally savvy based on public data Source: MIT CISR 2018 Board Study, 1122 companies, based on coding of public proxy data. 4Boards.ai
- 10. Digitally Savvy Boards -> Higher performance • Companies with “Digitally Savvy” boards • 38% higher revenue growth • 34% higher ROA • 34% higher market growth • 3 digitally savvy directors required to impact performance Source: MIT Research 2018 4Boards.ai
- 11. 4Boards.aiResearch; AI in Europe & Sweden by EY and Microsoft 2018 (n=267) Boards and Top Management not aligned on AI
- 12. While 63% of CEOs believe AI will have a larger impact on the world than the internet,…. https://www.pwc.com/gx/en/ceo-survey/2019/report/pwc-22nd-annual-global-ceo-survey.pdf …only 3% have AI as fundamental to the organization’s operations.
- 13. FUTURE OF VALUE CREATION Political Economic Sociological TechnologicalEnvironmental Legal Increasing uncertainty across PESTEL
- 14. All our knowledge is about the past, but all our strategic decisions are about the future Conway 2003 What we don’t know we don’t know about the future What we know What we know we don’t know
- 15. So, how can we prepare for the future?
- 16. “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.” - Bill Gates, The Road Ahead, 1996
- 17. BA Two individuals (organizations) with the same number of contacts…
- 18. …but with very different access to resources, ideas, and signals BA
- 19. Collective PESTEL insights Board competence and composition Continuous individual learning - Focused experts across PESTEL - Dinners/meetings with experts & young talents - Extended ”Safaris” & site visits - Collaboration w/ startups, academia, public sector - Networks, eg LinkedIn, Whatsapp, Meetups - Experienced nomination committee - Broad view of diversity - Experienced in digital ”innovation” – esp globally - Learning budget for each board member - Online education/MOOCs - Digital tools, eg tweetdeck Board activities for increased insights Ref: Forskningsprojektet OSIRIS/Digoshen 2019
- 21. Looking into the future? • Forecast – How we think the future will be • Vision – How we want the future to be • Scenarios – What the future can be – “Alternative memories” from the future ? ? ? ?
- 22. Interdependent, yet quite different elements of strategy • Scenario Thinking –Explore options. Practice divergent thinking with incomplete/ambiguous information. • Strategy Development –Assess options. Examine choices and make decisions and/or set a direction. • Strategic Planning –Implement actions. Make it happen. Swinburne Distant future High uncertainty Here and now Low uncertainty
- 23. Two modes of thinking https://cucumber.io/blog/2014/10/21/the-two-modes-of-thought-you-need-for-bdd
- 24. Four scenarios for 2035 Global Power Struggle Scenario 4 Business More or Less as Usual New World Order High Technology Convergence Low Technology Convergence Scenario 2 Circular “ReGen” Villages Scenario 3 Global Village Networks Scenario 1 MegaCities in the ”Wild West”
- 25. Global Power Struggle High Technology Convergence MegaCities in the ”Wild West” National platforms drive out foreign platforms and products. Global MegaCities thirst for resources and products, yet a high level of piracy and terrorism makes trade and transportation very dangerous. SDGs are seen as impossible to achieve. Low Technology Convergence New World Order Four scenarios for 2035
- 26. Global Power Struggle High Technology Convergence Circular “ReGen” Villages Self-sufficient, off-grid communities are enabled by part-time “producers” in Gig Economy. High protectionism with new energy resources, circular technologies, and sharing mentality drastically reduce demand for retail and trade so some SDGs are reached. Low Technology Convergence New World Order Four scenarios for 2035
- 27. Global Power Struggle High Technology Convergence Low Technology Convergence New World Order Global Village Networks Nomadic communities across countries, in oceans, and in space directly source products and services from small, sustainable producers worldwide. New energy resources and recycling and material technologies make SDGs history. Four scenarios for 2035
- 28. Global Power Struggle High Technology Convergence Business More or Less as Usual Monopoly-platforms from China and USA dominate trade by sourcing from global mega producers and delivering directly on-demand to a vastly urbanized world. Global initiatives to meet SDGs are pursued yet progress is very slow. Low Technology Convergence New World Order Four scenarios for 2035
- 29. Boundary spanning enables scenario thinking 1. Build relationships across diverse networks, avoid echo chambers 2. Practice scenario thinking and look for signals from the periphery 3. Ask “What if?”, challenge basic assumptions, and experiment 4. Ensure access to resources, not ownership, through your networks Boundary spanner
- 30. Avoid creating insular networks http://www.enronexplorer.com/focus/19185#
- 31. Professor Robin Teigland Chalmers University of Technology www.robinteigland.com | www.slideshare.net/eteigland | [email protected] | @RobinTeigland
- 32. Johanna Fagrell- Köhler StyrelseakademienOkt 2019 Björn Weigel VD Creuna, Styrelseledamo t Klövern, Jula, G5 Ent mfl Klara Adolphson Robin Teigland Styrelseordf. CyberAggregate mfl Investerare, Författare Professor Impakt- entreprenör 4Boards.ai Head of Delivery PWC Experience Center
- 33. Mest disruptiva ämnet på er styrelseagenda enligt deltagarna StyrelseakademienOkt 2019 Ref: Deltagare Omvärldsinsikt Styrelseakademien Stockholm 21 oktober 2019
- 34. http://mgmt.imit.se/nummer/nr-2-juni-2019/#innovation-and-corporate-renewal-also-disrupt-boards Tack för uppmärksamheten! Läs mer om goda praktiker i bla omvärldsinsikt från ledande styrelser StyrelseakademienOkt 2019