According to Pippa Begg, CEO of Board Intelligence, which compiles the ‘Board Value Index’ based on a survey of 400 board members worldwide: “The index shows that a large majority of boards continue to rely on structures, information flows and behaviours designed for a completely different era.”
By The Consejeros Editorial Team
According to the latest Board Value Index, based on a survey of more than 400 board members worldwide: Today’s boards are struggling to adapt to a technological and uncertain business environment:
- Only 18% of board members globally say that their board strongly facilitates innovation.
- Barely 37% consider their board to be an essential tool for value creation.
Structural Obstacles to Decision-Making
Rigid and inefficient processes are directly affecting agility and strategic focus:
- 86% of board members report that excessively rigid or inconsistent processes have led to delayed, rushed or poor decisions over the past six months.
- 41 per cent admit that their board spends half or more of its meeting time reviewing past performance rather than planning for the future.
Key Factors for Improving the Quality of Thinking
Board performance does not depend solely on structure; there are critical shortcomings in preparation and information that have led to poor decisions over the past six months:
- Board members’ preparation: Negatively affects 86% of boards.
- Quality of information received: Affects 84% of boards.
- Skills and subject matter expertise: Affects 78 per cent of boards.
Conflicting Views on the Future and Technology
There is a divide over how the work of boards will evolve and the adoption of new tools:
- Evolution of the work: 40 per cent foresee minor or incremental changes over the next five years, whilst 31 per cent anticipate a significant or fundamental transformation.
- AI implementation: Although the role of Artificial Intelligence in decision-making is the subject of widespread debate, only 49 per cent of board members report having moved from theory to implementation.
Vulnerability in CEO Succession
- Executive succession remains a critical structural weakness: only 19 per cent of board members state that they have a clearly identified internal successor ready to take up the role immediately.
According to Pippa Begg, CEO of Board Intelligence, which compiles the ‘Board Value Index’: “The conclusion of the Board Value Index is that Boards of directors are no longer measured solely on their oversight and compliance capabilities, but on the quality, speed and clarity of their decisions in fast-moving environments. The index demonstrates that a large majority continue to rely on structures, information flows and behaviours designed for a completely different era.
