IT or digital capability on your Board or governing group (Part 3). The how.

By Mark Nicholls, Partner, Information Professionals
Considering what options you have in order to add more IT or digital capability to your board? Great! If you haven’t had a chance, read our earlier article describing what capabilities you might need, and whether they might be a priority for your organisation/s. We also introduce the difference between the general IT skills and specialist skills of interest to Board Directors.  
digital strategy
Here, we define four approaches you can take for adding the capabilities you’ve identified.  None of them are mutually exclusive so you should mix and match them to suit.  

At times, multiple approaches may be necessary, as it may not be possible to have one person or one way that provides the right capabilities now and into the future. Some of these are better suited to building the general skills introduced in our last article, and some are more relevant to the specific or transient topics that can come and go in prominence from time to time.


The first option to consider is hiring Directors with the Digital/ICT capability who can inject their unique perspectives into your Boardroom.  As covered in our first article, this should not be at the cost of the corporate governance skills that all of your Directors should have.  You should focus firstly on the general IT/digital skills listed in our last article. If you feel you have these covered, then you could also consider specialist IT skills that your organisation will be focusing on over the coming years. 
The benefit of hiring is that there is no better learning than on the job learning. So having someone with good IT/digital skills can bring insights and perspectives that can help your entire Board to lift their own capabilities in this area. If you choose well, you may get someone willing to spend some time outside of the boardroom with your other Directors, to accelerate their learning.  This is a good step to building long term capability in your Boardroom.  Remember though, that depending on your Board culture, and the size of your Board, having one person on their own to quickly change the perspective of your Board, may be asking too much. 

The next option is the active development of your existing skills.  There are multiple ways of doing this.  On the job learning is one way through increased dialogue and discussion at the Board table, and increased discussion and information papers or presentations from the executive team.  As already mentioned, having Directors with more IT/digital savviness can help uplift everyone, either through Board discussions or discussions outside the Boardroom.
Additionally, there are significant opportunities for external training and education.  The AICD is one such body with increasing amounts of IT/digital education for Directors. Another option is coaching and mentoring for some Directors. If you have strong skills on your Executive team then building opportunities for high value contact time between specific Directors and Executive can be helpful. 
Skills development should be adopted by all Directors, as part of their continuous learning. And there is no better area to invest time than in IT/digital, given its changing landscape.

 
The third option is to extend the Board’s consideration of important or challenging matters through Board Committees or Advisory Boards.  This will be organisation specific, as one topic could be challenging for one organisation, but easy to deal with for a different organisation. 

This approach gives you flexibility to involve Directors (due to their special knowledge or interest, or to support their growth), Executive (due to their role, special knowledge, or to support their growth) and external advisors or experts.
 
Sometimes Boards may use Committees or Advisory Boards to assess candidates for future Board vacancies.  For those Directors or Chairs concerned about whether bringing in IT/digital skills means sacrificing basic corporate governance skills, then this could be a good testing ground.
Where you have existing Board Committees (eg Risk Management, Remuneration etc), it is prudent to consider how the IT/digital landscape may change their scope and role.  And in doing so, do they have the skills and capabilities to deliberate on this expanded scope.  For example:
  • Does your Risk Management/Audit Committees also cover Security/Privacy? How would this change the operation, make-up, reporting?
  • Does your Nominations/Remuneration Committees also cover IT/digital skill needs and recruitment/retention strategies? Have you got the skills on that committee to understand current and emerging needs in this area?
 
 

The final option to consider is consultancy or advisory input.  This could be used to accelerate the improvement in general IT/digital skills across the Board.  

It could also be used for specific topics that may be of interest from time to time.  It could take the form of research and discussion papers, presentations, hosted discussions, and guest presentations.  




About the Author:

Mark Nicholls, Managing Director, InformProsMark Nicholls is the Managing Director and a Partner with Information Professionals Group (IPG). He formed IPG in 2005, after a career of delivering software development and business transformation programs in the telecommunications, transport and government sectors in Australia and overseas including the United States.  

Mark leads IPG’s Programs, Projects and Change Practice.  He is a highly skilled program manager and adviser, specialised in leading, managing and advising organisations on the delivery of ICT, digital and business transformation.  

An active industry participant, Mark was elected to the QLD Council of the Australian Information Industries Association (AIIA) in 2013, was appointed as Chair in 2014 and to the Board of Directors in 2015.  

Mark is the inaugural Chair of the Qld Digital Economy Industry Collaboration Group, involving a range of industry groups that are supporting their constituents in the adoption of digital business.

IT or digital capability on your Board or governing group (Part 2). What capabilities?

By Mark Nicholls, Partner, Information Professionals


If you accept the need to improve the IT/digital capability on your Board or governing group (see our last blog) then a reasonable question is, what skills are required?

 
This article is unlikely to completely answer this question for your organisation, as all organisations are unique, but it aims to give you some prompts and guidance to assist.  Firstly, we’ll consider your organisation, then the range of skills in IT/digital.
 

Your own organisation

In considering your organisation, a good place to start is the Tricker Model.  It is one of many lenses you can use to determine where your Board priorities are and therefore where your skill priorities may be in relation to IT/digital.  Other areas to consider include your corporate strategy and corporate risk register.  These may provide guidance on where your priorities are.  You may also want to consider the confidence you have in various skills across your Executive team.


IT versus digital

Know your organisation


In considering what the range of IT/digital skills are, let’s unpack this IT/digital term.  As demonstrated, often when the term ‘IT’ is used, it is in the context of internal organisational capability.  Likewise, when the term ‘digital’ is used it is often in the context of how an organisation relates externally to its customers, competitors, suppliers and the broader ecosystem in which an organisation operates.


Of course the two are related, as it will be challenging to adopt digital externally unless you have the capability internally to deliver. 

When Information Professionals develops ICT strategy, some things we consider include:

  • Governance – how IT decisions are informed, made, implemented and assessed;
  • Alignment – aligning IT strategic priorities and intent with organisational strategy; and
  • Capability – the ability to deliver to the organisation’s needs, leveraging internal and/or external capabilities across infrastructure, security, technology, applications, data, business process and all other domains.


With digital strategy, we consider:

  • Digital marketing – to extend the sales and marketing capabilities into the digital world;
  • Digital business – to integrate digital strategy into business strategy;
  • Digital transformation – to drive digital across the enterprise along with the introduction of digital performance measures; and
  • Digital economy – to widen the scope of influence to the extended value chain and communities in which an organisation operates, and drive digital across this wider group.


How well informed are you and your Board in understanding your current and target state for each of the above areas of ICT and digital?

IT and digital topics


The AICD Essential Director
briefing (referenced in the previous blog) provides some guidance on where the peak body for Directors defines key areas of interest for the Director community.  Since 2013, these areas are:

Year
Topics
2013
Social Media; IT Governance; Current IT Issues (NBN, BYOD, Big Data, The Cloud, Cybersecurity, Innovation)
2014
Governance Landscape (Innovation, Social Media); Technology Trends (Digital transformation, Data, analytics and the power of information, Mobile, Cloud computing, Cyber security and resilience, IT-enabled projects, 3D printing and additive manufacturing, Robotics, Quantified self, Australia’s place in the digital economy)
2015
Risk Management (Cybercrime, Social Media, Real-Time Performance Dashboards); Technology Trends (Fintech Start Up Hub, Stone & Chalk, Crowdfunding, Retail Omni-Channel, Internet of Things, Live Streaming)
2016
Exponential Technology” (how “Technology has become indivisible from how people, enterprises and governments operate); Digital Disruption; Virtual Reality; Machine Learning; Data Analytics; Blockchain


Amongst these topics, there are a few themes which repeat over multiple years. The bolded topics are a clue.  These themes form a guide on the general skills each of us need to have.  They are:

  1. IT Governance (2013: IT Governance; 2014: IT-enabled projects)
  2. Digital Transformation (2013: Innovation; 2014: Innovation & Digital Transformation; 2016: Exponential Technology, Digital Disruption)
  3. Digital Media (2013: Social Media; 2014: Social Media; 2015: Social Media)
  4. Security and Privacy (2013: Cyber security; 2014: Cyber security and resilience; 2015: Cyber crime)
  5. Data and Analytics (2013: Big Data; 2014: Data Analytics and the Power of Information; 2015: Real-Time Performance Dashboards; 2016: Data Analytics)
  6. Digital Ecosystem (2014: Australia’s place in the digital economy; 2015: Fintech Start Up Hub, Stone & Chalk)


Each of these themes will have varying degrees of interest to all organisations and will feature in some form, for many years ahead.  Therefore, it will be prudent to consider how savvy your Board is in being able to properly enquire on, consider and discuss them.

What is most important about these themes is that they can be applied to many specific technologies that you may be encountering now and in the future.

Other topics covered in the AICD briefings are specific and more transient technologies which will have greater or lesser prominence for your organisation, both now and in the future.  They include:

  • 2013: NBN, BYOD, Cloud
  • 2014: Mobile, Cloud computing, 3D printing and additive manufacturing, Robotics, Quantified Self
  • 2015: Retail Omni-Channel, Internet of Things, Live Streaming
  • 2016: Virtual Reality, Machine Learning, Blockchain


These specific topics and others may come and go in prominence for your organisation over time.  If any of these (or other areas) are a priority for your organisation, then please consider how well informed your Board is.  However just because there is a focus on, for example, cloud or machine learning, in your current strategy, it may not warrant bringing on a Director with knowledge in these specific areas.

There are multiple ways of ensuring your Board is well equipped to oversee its responsibilities in relation to IT and digital.  In our next blog we’ll discuss what they are and how you can apply them.

About the Author:

Mark Nicholls, Managing Director, InformProsMark Nicholls is the Managing Director and a Partner with Information Professionals Group (IPG). He formed IPG in 2005, after a career of delivering software development and business transformation programs in the telecommunications, transport and government sectors in Australia and overseas including the United States.  Mark leads IPG’s Programs, Projects and Change Practice.  He is a highly skilled program manager and adviser, specialised in leading, managing and advising organisations on the delivery of ICT, digital and business transformation.  

Mark is an active industry participant. In 2013 he was elected to the QLD Council of the Australian Information Industries Association (AIIA), was appointed as Chair in 2014 and to the Board of Directors in 2015.  

Mark is the inaugural Chair of the Qld Digital Economy Industry Collaboration Group, involving a range of industry groups that are supporting their constituents in the adoption of digital business.


References

http://www.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2013/03687–13–nat–essential-director-update-2013_internal-pages-final.ashx

https://aicd.companydirectors.com.au/~/media/resources/events/essential-director-update/edu-2014/04372-3-evt-essential-director-update14-jun14-handbook_a4-46pg_web.ashx

http://www.companydirectors.com.au/~/media/resources/director-resource-centre/publications/books/pdfs-various/essential-director-update-2015_final-sitecore.ashx

http://aicd.companydirectors.com.au/~/media/cd2/resources/events/essential-director-update/PDF/05496-6-EDU16-Handbook_WEB_v6