IBM CTO ? Digitally-savvy and Cyber-savvy Board Director ? CEO Advisor ? Competent Boards Faculty ? Making Purpose Real Through Board Excellence ? Global Perspective, Digital Transformation, AI, Cybersecurity, ESG Expert
Activist investors are reshaping the corporate landscape—are you ready to lead the change or be led by it? In today's rapidly evolving business environment, companies like Pfizer are facing unprecedented scrutiny from activist investors. As a digitally savvy board director with over 25 years of experience, I've seen firsthand how proactive governance can transform challenges into opportunities. Here's how boards can stay ahead of the curve: 1. Adopt an Activist Mindset: Don't wait for activists to highlight your vulnerabilities. Proactively identify and address potential weaknesses in strategy, performance, and governance. This isn't just about defense; it's about steering the ship with foresight and agility. 2. Self-Assessment is Key: Regularly evaluate your performance across critical areas—from shareholder returns to ESG performance. This holistic approach ensures you're not just meeting expectations but exceeding them. 3. Focus on Margins, Not Just Growth: In the quest for revenue, don't lose sight of profitability. Prioritizing margin improvement can offer a more sustainable path to value creation. 4. Embrace Diverse Perspectives: Be open to external insights and ready to make tough decisions early. Delaying action only amplifies risks. 5. Communicate Clearly: In times of crisis, a measured response can mitigate criticism. Transparency and strong communication with institutional investors can prevent them from siding with activists. 6. Engage Constructively: Consider private dialogues with activists. Constructive engagement can lead to mutually beneficial outcomes without the public spectacle. 7. Prioritize ESG: Environmental and social demands are no longer peripheral—they're central to activist campaigns. Address these proactively to align with evolving stakeholder expectations. 8. Strategic Flexibility: Be prepared to evaluate and execute strategic changes, including M&A activities or divestitures, to unlock shareholder value. As leaders, it's our responsibility to not only navigate these challenges but to turn them into catalysts for growth and innovation. Let's champion a future where corporate purpose and profitability go hand in hand. What steps are you taking to prepare your board for the future? Share your thoughts and let's drive this conversation forward. #CEO #KSgems #BoardOversight #CFO #CIO #CTO #CISO #Leadership #Innovation #Governance #Activist #BoardDirector Kara Reinhardt Lauren Thomas James Callan Andrew Barker Jake Perez https://lnkd.in/eF5H4dpR
