Executive Advisory Inc.

#BoardDiversity #CorporateGovernance #InclusiveLeadership #RepresentationMatters #DemographicEquality #DiversePerspectives #StakeholderRelations #BusinessOutcomes #InnovationInclusion #EquitableRepresentation #InclusiveBoards #DecisionMaking #InnovationInclusion #CorporateResponsibility

#YoungDirectors #BoardDiversity #NextGenLeaders #DigitalTransformation #MillennialLeadership #InnovationInGovernance #FutureProofBoards #BoardroomPerspectives #CorporateInclusivity

#BoardofDirectors #WomenOnBoards #BreakingBarriers #GenderEqualityInLeadership #BoardroomDiversity #EmpowerWomenLeaders #FosteringInclusion

#boardrooms #boardofdirectors #boarddiversity #diversityandinclusion #DEI

#globalexperience #corporategovernance #internationalbackground #boardofdirectors #boardseats

#boardseats #boardofdirectors #securingaboardseat #lookingforboardseats #landingaboardseat #employment #boards

#ExecutiveAdvisory #boardseatsearch #technology #innovation #tech #cybersecurity #boards

An Overview of the Boardroom and Diversity in 2023   What are recent concerns of corporate boards? How are they providing innovative strategies and solutions to address the challenges they face? These are the questions asked of boards every year. To keep up with questions like these, we must pay attention to how governance practices and industry trends are changing. The business sector is constantly evolving and companies must have board directors that can keep up in performance and expertise.   So, how are companies responding to such a dynamic environment? Surprisingly, boardroom turnover remains low. In 2023, just over half of S&P boards appointed at least one new director. To achieve excellent problem-solving skills and high performance, boards need a diversity of perspectives. Companies should prioritize appointing new directors to gain a wide range of skills and experiences. In doing so, they must monitor the tenure of their current directors. In 2023, the average tenure of S&P 500 directors was 7.8 years, just about a year less than what it was ten years ago. To sustain performance in the industry, companies need to refresh their directors. This allows them to continuously reassess the need for existing skill sets and obtain new ones if necessary, maintaining variety. Companies should evaluate the tenure of directors and potential retirement limits. Directors must refresh as the industries they lead continue to change.   It is also important to note how effective current board evaluation practices are. 98% of S&P 500 companies conduct annual performance evaluations, while just under half of companies conduct individual director evaluations. These evaluations should provide meaningful information so that governance policies and practices remain well-informed. Companies may consider using an independent third party to conduct evaluations or integrating some form of peer evaluations. It is important that boards are transparent and willing to undergo such evaluations so that hard, but necessary, decisions can be made regarding board and director performance.   Additionally, diversity has continued to rise in the boardroom in the last year. 33% of new directors joining S&P 500 boards and 24% of all S&P 500 directors in 2023 were women and/or a member of a minority group and/or LGBTQ+. These statistics are encouraging, with diversity gaining much-needed momentum in governance. By allowing an assortment of unique individuals to join decision-making processes, companies ensure that valuable perspectives can give oversight on emerging issues and responsibilities.

The Rise of Artificial Intelligence    In recent years, the emergence of Artificial Intelligence (AI) has quickly taken nearly every industry by storm. AI and machine learning have been around for decades, but it is only very recently that a form of AI called generative AI has become so accessible. Generative AI uses deep-learning models to learn from inputted data and output various content. With evolving technologies becoming a very important factor in driving business trends, AI has finally appeared on Forbes’ list of top trends that will impact businesses over the next year.    Opinions on the use of AI have remained split. While 66% of employees report engaging in experiments with generative AI technologies, in the past year, just 51% of them express the belief that AI offers more opportunities than risks for their organizations. All forms of technology have risks, but in many cases, the benefits outweigh the costs. Previous innovations in technology have led to productivity boosts in businesses across history, but much of this growth has had limitations. AI is unique in that it is not limited to specific tasks or problems. It is a versatile tool that can be used across various settings. Because of this unprecedented accessibility and versatility, the widespread implementation of generative AI could be easier than past technological advancements.   Businesses should focus on the ways that AI can complement human expertise, rather than replace it entirely. Research has shown that generative AI can improve the performance of even a highly skilled worker by as much as 40%. Although AI can make errors, it has proven very useful in generating new ideas and producing convincing text and other content. But successfully integrating AI in employee workflows cannot just happen overnight. It is important to create a supportive environment where employees feel comfortable exploring new ways of working with AI. Providing resources for training and development would be most helpful. Specifically, implementing an onboarding phase for workers would allow them to understand the capabilities of AI and receive crucial training and feedback. Additionally, businesses should clearly define expectations for how AI should be used and promote transparency about the ethical implications of using AI.    Despite potential downsides that may come along with new technologies, it is clear that AI is here to stay. Goldman Sachs has predicted that beginning in 2027, AI will have a measurable impact on US GDP. Driving future business means keeping up with more than just present trends. The Boston Consulting Group has emphasized the importance of a “clear and compelling generative AI strategy” for a business to secure a position as an industry leader in the next five years. Although a lot remains uncertain, AI seems to be at the forefront of the future of business.

As board demand changes every year, it's important to stay up-to-date on demand forecasts and figure out where you fit in to secure a board seat. https://lnkd.in/grfzWQwh #boarddemand #boardofdirectors