The NACD (The National Association for Corporate Directors) undertook a pulse survey of 306 directors across multiple industries to gain insight into boards’ governance challenges. According to this survey, the directors believe that the COVID-19 pandemic will have a lasting effect – on business strategy, the nature of work, and board management interactions. In this article at GlobalNewswire, the author explains the survey highlights, trends, and governance challenges the directors expect to face over the next few months.
As directors, management, and their organizations expand their focus on corporate survival and employee health, they are also preparing for recovery and success in the new normal. Take a look at the highlights of the survey.
Changing the Nature of Work
Directors expect that changes to the employee experience will impact the organization’s recovery. “More than half (54%) cited changes in the way work gets done as one of their top three concerns,” says the author. Nearly 32% will prioritize digital transformation in their organization. Directors from consumer-focused firms indicated a significant shift in consumer preferences.
Strategy is a Top Challenge
Nearly 60% of the respondents believe shaping a post-crisis strategy is one of the top governance challenges. Directors are concerned about their ability to understand new risks and their implications. Unfortunately, according to the survey, critical in-boardroom activities such as director engagement, board succession planning, and director recruitment and onboarding are pushed aside.
Communication Between Boards and Management
The same survey revealed that directors spend more time with management after a crisis than before. Nearly every board has made use of tools to enable virtual board meetings. Furthermore, frequent communication between boards and management has increased.
Increased Confidence in Management Teams
The survey highlighted that boards continue to trust their management teams. More than 92% of directors reported confidence that their organization will survive a crisis, and 87% of directors reported that their management teams have effective strategies to handle a crisis.
To read the original article, click on https://www.globenewswire.com/news-release/2020/06/09/2045725/0/en/NACD-COVID-19-Survey-Reveals-Top-Trends-and-Governance-Challenges-Directors-Anticipate-as-We-Move-to-New-Normal.html.