The coronavirus epidemic has multiplied business operation challenges. The spread of the virus is still pushing companies to adapt to changing market conditions. A robust coalition between the board of directors and corporate management is the ultimate solution to outlive the emerging challenges. In this article at McKinsey, Celia Huber and her fellow authors explain the before and after-effects of the pandemic. It will help you project and plan to withstand future crises.
The Board Respond
According to a recent McKinsey Global Survey of over 800 board of directors and executives, the whole corporate world suffered losses in 2020. However, most organizations managed to swiftly adopt the remote work model and efficiently navigated the economic crisis. Furthermore, it was possible because the corporate board managed to operate from distributed locations. Nonetheless, the latest outcome of the survey defines the vulnerabilities triggered by the COVID-19 outbreak. So, the collaboration between the board and management is even more critical now than before.
Most organizations have grown past frequent operational glitches. Just by implementing advanced infrastructure, they managed to concentrate on other crucial resilience matters. Their board was committed to preserving a seamless relationship with the management. Let’s take a look at the lessons emerging from the board’s response:
- Before the outburst of the coronavirus epidemic, only the ability to overcome an economic downturn was on the agenda of the corporate board. At present, the board of directors has achieved strategic progress in crisis management.
- The confusing roles of the board and management teams have created a shortage of efficiency. Gradually, in 2021, it is dissolving because the board is adapting to function in any condition.
- The board has countered pandemic challenges by increasing its overall commitment to time. Between 2019 and 2020, a sharp rise of 20 percent was observed in the number of days devoted to corporate board work. Their collaboration with the management team redefines new processes that pay attention to resilience and time management.
Get a clear vision of the changes under way, which may outlast in the post-pandemic era. Click on the following link to read the original article: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-boards-have-risen-to-the-covid-19-challenge-and-whats-next