Protiviti Inc.
12/11/2024 | News release | Distributed by Public on 12/12/2024 12:02
Managing Organizational Blind Spots and Disruption
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Managing Organizational Blind Spots and Disruption
The topics of organizational blind spots and industry disruption continue to command interest in the boardroom. Recent events hosted by Protiviti offer additional insights on these important topics.
In October, Protiviti hosted two events attended by more than 700 directors and senior-level executives to discuss organizational blind spots and industry disruption. Prior issues of Board Perspectives have discussed these issues, and our intention in facilitating these additional expert panels was to solicit further commentary on these topics of interest to many directors. This issue of Board Perspectives discusses 10 key takeaways from these events:
Adopt an enterprise risk management (ERM) mindset to identify blind spots. A strong focus on ERM emphasizes robust processes for analyzing risk, designing cost-effective mitigation activities and evaluating preparedness for the unexpected.
Identify scenarios and gather around the table. Because blind spots can result in the unexpected, tabletop exercises offer a useful process for playing out various scenarios to evaluate organizational preparedness.
Foster more engagement and forward-looking dialogue. Blind spots interest directors because they understand that what they don't know can often be as impactful as what they do know. They also understand that the world is unpredictable. Thus, free-flowing strategic discussions should be welcomed in the boardroom regarding the issues that matter to establish a context for identifying blind spots.
Identify potential disruptors. Innovations will reshape every industry, giving rise to questions regarding what new products and services companies are developing currently that will replace the ones that will eventually lose relevance. Our discussions surfaced interesting examples of disruptive blind spots and ideas for identifying them.
Don't wait to be disrupted. During the October events, a variety of steps for companies to take were suggested to stay ahead of the disruption wave before it crests.
Know where the company is on the disruption continuum. The phrase "disrupt or be disrupted" is an implicit call for businesses to become either more proactive or more agile. It is a question of where a company chooses to position itself on the disruption continuum.
Recognize promptly when the company is being disrupted - or face the consequences. In the October webinar, we asked two questions - how would you know you are being disrupted, and when would you know it? These two questions are highly relevant in the boardroom.
Make the company's crisis management plan world-class. Any discussion of blind spots and disruption must acknowledge the need for a world-class crisis management plan that ensures clear, transparent and timely communication during a crisis to maintain stakeholder trust. For directors, the important question is "When does the board engage?"
Reduce blind spots by interacting with employees. Many board members serve on multiple boards, giving them a broader perspective as they look across more than one company. In addition, board members can minimize their blind spots by interacting with managers and employees at levels below the C-suite - particularly those who are market-facing.
Pay attention to board culture, skill sets and performance. In today's digital world, the big question is whether the board's composition (its skills, and diversity of experience and thought) and culture (its personalities, soft skills, trust, commitment to lifelong learning, and capacity for open dialogue and asking the tough questions) is a fit with the company's needs looking forward three, five and 10 years from the present.
The above discussion is neither the first nor the last on blind spots and disruption. The challenges of this complex and unpredictable world place a premium on agility and resilience. For that reason, board members would be wise to continue to highlight these matters in the boardroom for a long time to come.
(Board Perspectives - Issue 182)
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