Board Effectiveness: ESG, Cybersecurity, Digital Transformation

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Digital Transformation -Putting Data "and" Purpose to work

Leading firms create value through Digital transformation. However, few firms use bolt-on technologies such as APIs, Data fabric for supply chain innovation, fintech innovation, etc.

I consult CEOs and boards to infuse digital technology into all business areas by fundamentally changing business processes for value creation. It should address some of society's most significant challenges by creating value for all stakeholders.

Digital transformation is about more than just making money. It's about making a difference for all stakeholders. -Khwaja Shaik, Board Advisor

Digital transformation is a Board-level agenda, and firms must invest in the technologies that will add the most value to their businesses. Board oversight is critical in making these decisions and ensures that digital transformation efforts are aligned with strategy and societal imperatives. In addition, purpose-driven digitally-savvy Board members can provide valuable insights and guidance when making decisions about technology investments and tech-infused business models for value creation for all -employees, customers, suppliers, and communities.

The right digital transformation strategy can serve as a force multiplier for good in the world and address some of society's most significant challenges.

Digital transformation is about ROI "and" higher purpose. Purpose infused Digital transformation can lead to widespread positive change for the society.

Demand your board's technology operating committee for a lower architecture complexity, upskilling workforce, and greater data integrity underpinned by 'secure by design "and" 'privacy by design practices.

I agree with?McKinsey & Company ?partners on not moving the data to the cloud without identifying and vetting various high-value business use cases. Read more in their HBR piece here . I will go even further in treating data like a commercial product "with" sufficient guard rails.

Secure by design and privacy by design practices are fundamental to staying ahead of the Trust imperative. For example, different use cases demand various types of data management infrastructure. Infuse the right balance with automation and trusted data-sharing capabilities.

It is a moral imperative for the modern boards to provide oversight on Trust metrics. Validate robustness of trust imperatives and processes by infusing ecosystems and tie the compensation of senior executives with trust culture, business and societal metrics.

CYBERSECURITY

Is your board prepared? Cybersecurity is a team sport. As I counsel CEOs and boards, I often advise that even a single point of failure can make the global economy vulnerable. I applaud Finland's govt for adapting and encouraging a collective defense model. If you are not treating it as a holistic conversation -strategy, risk oversight, technology oversight, business resilience, the role of culture, and leadership issue- you need to strengthen the "G" pillar of ESG -create a capable board, and redesign the board's committees.

There is no silver bullet in cybersecurity, but a well-functioning board that oversees a company's cybersecurity strategy can be a great start. In addition, cybersecurity is a global issue that requires a coordinated effort from all stakeholders. The Finnish government's recent decision to create a collective defense model is an excellent example. I encourage other governments and companies to take similar measures.

Creating a capable board is not easy, but it is essential if we want to improve our cybersecurity posture. I would suggest redesigning the board's committees to better reflect the importance of cybersecurity. The role of culture and leadership is also crucial in this effort. We need to change how we think about cybersecurity and make it a top priority for everyone.

Cybersecurity is a team sport; we all need to do our part to make the world safer. Therefore, I hope that more companies and governments take action to improve their cybersecurity posture.

ESG

Wall Street is attempting to derail Securities and Exchange Commission Chairman?Gary Gensler’s agenda by challenging economic assumptions underpinning dozens of policy proposals. The most important thing to remember when approaching ESG is that it is a holistic conversation, not a bolt-on agenda. It means that ESG topics should be integrated into all aspects of your business strategy, from value creation to human capital management, diversity, and society.

Lead with the "Governance" pillar of ESG first to effectively execute the "Environmental" and "Social" pillars. Boards are critical to creating sustainable long-term value, and an independent, accountable, and competent Board plays a vital role in overseeing financial, human, and physical capital. By approaching ESG from a strategic perspective, you can future-proof your business and make sure you are creating sustainable value for all stakeholders.

Board Composition

The modern business landscape is constantly evolving, and companies must adapt to survive. Unfortunately, many boards lack the skills and expertise needed to navigate these changes effectively. As a result, companies risk being left behind by their competitors.

To stay ahead of the curve, boards need to have the right mix of skills and experience. In addition, they need to identify risks and opportunities, and make decisions that will future-proof the business.

Board composition is a key factor in determining a company's ability to adapt and thrive in changing times. So what do you think about Disney's board and activist investor's take on this? Thoughts?

BOOK RECOMMENDATION

If Nothing Changes, Nothing Changes: The Nick Donofrio Story?

If Nothing Changes, Nothing Changes is a powerful testimony to our ability as human beings to drive transformation, not just within the realm of technology but across generations. With both heart and candor,?Nicholas Donofrio ?explores how his upbringing in an immigrant family and his experience shaped his leadership style and approach to innovation.

If Nothing Changes, Nothing Changes, is more than just a business and technology biography.

Nicholas has laid out in practical terms how to embrace a market-centric focus, push for new ground-breaking technologies, and redefine innovation in a way that broke down decades-old silos.

Everyone has the opportunity and responsibility to be a change agent in their organization and society by having a mindset of "always accept the challenge". His example is depicted vividly throughout his career at IBM and as a leading board member at various fortune 500 firms including NACD (National Association of Corporate Directors) .

In particular, Donofrio highlights the importance of always looking for the potential for good in technology, even when it seems like there is none. He shares stories from his time at IBM of how he drove innovation within the company, and how those same principles can be applied to any organization.

Beautifully written and illustrated with memorable stories filled with practical advice on ways to prepare you as a leader, as an effective board member, and to show you why If Nothing Changes, Nothing Changes.

One of the best books I have ever read on tech history, business model differentiation, and purposeful innovation.

For professional insights into complex Board & C-suite issues, join the?conversation by tweeting?Khwaja ?at?@Khwaja_Shaik ?or?connecting with him on?LinkedIn .

ABOUT KHWAJA SHAIK

Khwaja Shaik ?is the award-winning C-level Global IT Executive with 25+ years of technology, industry, and board leadership with?GE, IBM, Bank of America & PwC. He was recognized globally for turning visionary thinking into breakthrough growth.?As one of?IBM’s CTOs, Khwaja counsels CEOs, Boards, and Startups on corporate strategy, digital transformation, AI, Cybersecurity, ESG, and culture shifts to unlock performance.

Using his innovative mindset, he saved $1.1 billion per year for?Bank of America ?by transforming the Global IT Operating model and future-proofed business by mitigating risk and infusing new?fintech. Khwaja has 20 years of experience in the highly?regulated banking and financial services?industry.?

In addition, as a Big5 thought leader at?PwC , he incubated new businesses, reshaped business and?platform operating models— digitized end-to-end business processes to capture value, and protected firms from?cyberattacks?through AI & the cloud.

Khwaja has a history of leading over $10B digital business transformations by scaling Agile practices for cost optimization, revenue-generation, and societal transformation imperatives. It includes digital business optimization and using digital business models to capture profitable growth, customer lifetime value & competitive advantage to Fortune 500 firms.

Khwaja transformed the Omnichannel customer experience by delivering world's largest next-gen Contact Center platform as part of BAC's M&A (CFC, MBNA, Fleet etc.) by replacing aging telephony system with VoIP. Contact Center platform serves 1 billion calls, 500K interactions annually and 300 million outbound calls annually to support multichannel strategy

In 2016, Khwaja was among the most exceptional IBMers appointed with the rare distinction of?IBM ?Academy of Technology member. In 2020, Khwaja was recognized as IBM’s senior inventor and top 100 technical leaders driving technology ethics and data stewardship, providing the direction of IBM on societal transformation with responsible innovation that matters.

Service to others has been a part of Khwaja’s purpose. Khwaja promotes economic equity, social responsibility, diversity, and inclusion for the prosperity of all -the reinvention of education through innovative programs such as Open P-TECH. Due to his holistic stakeholder engagement in the industry, partner ecosystem, and?community, Khwaja received several service awards from IBM, Bank of America,?University of North Florida , @Indo US Chamber of Commerce of Northeast Florida, and 2022 ORBIE Awards?FloridaCIO ?Finalist.

Khwaja serves on the boards of directors of the?Museum of Science & History , UNF School of?Computing Advisory Board ,?TECt, ?MIT ?CIO Forum,?Interfaith Center of Northeast Florida ,?and McKinsey Executive Panel.

Khwaja regularly writes on?LinkedIn ,?Twitter ?and regularly?interviewed ?for?industry insights ?or cited in the?news ,?Thought Leadership POVs . He is a frequent international speaker at elite universities, including IIT Hyderabad, CIO IT & Security Forum,?MHI ?Supply Chain Conference, and JAX Chamber IT Council.

Khwaja is a Fellow of Herndon Directors Institute, sponsored by?Nasdaq ?and?Atlanta Life Insurance Company . Khwaja holds an MBA and a bachelor’s degree in Engineering. Khwaja lived on three continents, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 22 years, and has two boys.

?More details on Khwaja’s career and thought leadership activities could be found via?Linkedin, ?Khwajashaik.com ?or follow him on Twitter @Khwaja_Shaik

"The postings on this site are my own and don't necessarily represent IBM's positions, strategies, or opinions."