Khwaja's Take: Fareed's Warning, Mayor Dickens, DEI, FORTUNE IMPACT, Stacey Abrams, Dennis Lockhart, Arvind Krishna,NASDAQ, AI Bill, Capital, OpenAI

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1. From Cold War Echoes to AI Acts - Reshaping Board Agendas for a Fragmented World

In today's interconnected yet fragmented world, the boardroom's compass must point towards resilience and foresight. Fareed Zakaria's assertion that we're in "the most dangerous moment" since the Cold War is a clarion call for boards to rethink their agendas. As someone who has navigated the complexities of Asia, the Middle East, and the USA, I can't stress enough the urgency of incorporating geopolitical risk into boardroom discussions. This isn't just about risk mitigation; it's about value creation through strategic foresight.

In a world with less global leadership, diverse boards with an outside-in perspective are crucial. Engaging with key stakeholders and fostering local federations can no longer be optional. Every committee, from Risk to Technology to Compensation, must adopt a multi-stakeholder mindset to stress-test scenarios effectively.

Integrating geopolitical risks into talent strategies is vital. This means embedding board agendas with financial, supply chain, compliance, talent, and reputation risks. Director education on pivotal regulations like the CHIPS Act, AI Risk Management Framework, and the EU's AI Act is non-negotiable.

Monthly reviews and site visits should become the norm. Boards must oversee cloud concentration risks, infrastructure resilience, AI risks, third-party viability, and personal data fragmentation. Regulations such as the EU's GDPR, China's Data Security Law, and India's PDPB demand rigorous board oversight.

The stakes are high. Refresh board agendas to focus on supply chain integrity, compliance adherence, financial stability, operational risks, and talent acquisition and retention. Boards should guide senior management on new operating models, continuous compliance, and third-party assessments.

Continuous learning agility is essential. Keeping an eye on media reports and political discourse is more important than ever. Understanding election cycles and their potential impact on trade tensions can serve as strategic indicators.

HR should be a regular board agenda item, with geopolitical risk considerations embedded in talent strategy. Boards must consolidate risk views, establish clear policies, and strengthen governance to foster a thriving risk culture.

In this global chess game, boards must act as navigational compasses, ensuring risk oversight is both responsive and anticipatory. Foresight is the key to resilience.

If this resonates with you, give this post a like, leave a comment with your thoughts, or share it to spark a broader conversation.

#BoardroomStrategy #GeopoliticalRisk #LeadershipInCrisis

2. What it Takes to Improve EBITDA for BOEING?

The rising complexity of board directorship calls for more than stewardship; it demands strategic agility and foresight. The expectation isn't just to govern but to engage deeply with strategy, performance, risk, and talent to pioneer transformative change.

The boards that will indeed thrive are the ones willing to pivot, to be the catalysts in harnessing innovation and navigating the murky waters of global challenges. It's no longer about steering the ship through known waters—it's about charting new territories.

In today's rapidly evolving market landscape, where a headline in The Wall Street Journal about EV charging firms adding cyber shields to products in the U.K. is quickly followed by another on Fisker's potential strategic restructuring, one thing remains clear: the inherent need for foresight and resilience in business strategies.

3. Why Boards Must Care About Private Capital?

In a world where change is the only constant, the insights shared by Larry Fink on CNBC resonate deeply with my own experiences. As we stand at the crossroads of technology and governance, the role of boards in steering the ship towards sustainable value creation has never been more critical. The competitive advantage of the US is growing, but we must harness the power of AI and technology to maintain this edge.

4. Navigating the AI Frontier: Lessons from OpenAI's Bold Journey

In the rapidly evolving landscape of AI, the path to innovation is often paved with challenges, as OpenAI's projected $14 billion loss by 2026 illustrates. This isn't just a financial forecast; it's a crucial lesson for corporate boards and CEOs steering their AI strategies.

As a board director with over 25 years in technology and governance, I've seen firsthand how the tides of innovation can shift. Here are the headwinds to anticipate when choosing AI vendors with concentration risks:

1. Regulatory Pushback: As platform companies grow, so does scrutiny. Navigating these waters requires foresight and adaptability.

2. Cloud vs. On-Premise: The cloud's rise is pressuring traditional models. Boards must strategize to balance innovation with profitability.

3. Product Traction: Not every new product will succeed. It's vital to foster environments that encourage nimble innovation and rapid iteration.

4. Rising Competition: The AI arena is crowded. Differentiation through unique value propositions is key.

5. Enterprise Needs: Companies crave comprehensive platforms, not just specific LLMs. The focus should be on enhancing productivity seamlessly.

6. Data Curation Bottlenecks: Making enterprise data AI-ready is a significant hurdle. Prioritizing data strategy is essential.

The biggest risks? A shortage of datacenters for GPU operations and potential delays in revenue streams to support the massive $200B GenAI CapEx anticipated in 2025. Boards must question if the demand will meet these investments.

As we chart this course, remember that anchoring business strategy with a noble purpose is not just ethical—it's strategic. By championing multi-stakeholder capitalism, we can drive societal transformation while ensuring sustainable growth.

5. Stacey Abrams at the FORTUNE Impact Initiative

"Democracy is not a spectator sport." – Lotte Scharfman once said, and today, these words resonate more than ever. Reflecting on my recent conversation with Stacey Abrams at the FORTUNE Impact Initiative, I am reminded of the profound truth in this statement.

In October 2020, the Business Roundtable emphasized that the strength of our democracy hinges on the integrity and fairness of our elections. Stacey Abrams, a trailblazer in her own right, echoed this sentiment, highlighting a critical issue: the process of voting should be impartial, not partisan. When the ability to cast a ballot is influenced by those in power, democracy teeters on the edge of peril.

The first African American to lead in the House of Representatives of Georgia, Abrams has been a relentless advocate for voting rights. Her organization, Fair Fight, is a testament to her commitment to combat voter suppression and promote fair elections. Her insights remind us that while who we vote for may be partisan, the process itself must remain unbiased and transparent.

As a board director and CEO Advisor with a passion for societal transformation, I see parallels between the integrity of our democratic processes and the ethical governance of the corporate world. Just as democracy thrives on fairness and transparency, so too must the businesses. We must anchor noble purpose with our business strategies, ensuring that innovation and growth are aligned with good tech, ethical practices and societal benefit for all.

In a world where technology and digital resilience are paramount, we must champion multi-stakeholder capitalism, ensuring that our actions benefit all, not just a select few. As leaders, we have a responsibility to foster environments where fairness and integrity are not just ideals but realities.

As always Diane Brady of Fortune CEO Initiative was fabulous with her illuminating questions that brought a breath of fresh air.

What are your thoughts on the intersection of democracy and corporate governance? How do you ensure fairness and transparency in your organizations?

6. Value Creation Through DEI

Are we truly ready to embrace diversity as a catalyst for innovation, Social Impact and growth in our boardrooms??At the FORTUNE Impact Initiative, I had an enlightening conversation with Zakiya Carr Johnson, Chief Diversity & Inclusion Officer, at U.S. Department of State. Her insights on Diversity, Equity, and Inclusion (DEI) left a lasting impression. Zakiya emphasized that DEI isn’t just a buzzword; it’s about American values and the human experience.

When we embrace diversity, we create better policies and drive meaningful change. As millennials and Gen Z—our most diverse generations—continue to shape the workforce, companies must prioritize DEI to remain competitive. Research from McKinsey & Company shows that organizations with women in leadership roles consistently outperform their peers. So, how can we ensure our boardrooms reflect this imperative?

Here are a few actionable steps I recommend Board Chairs, and Lead Directors:

1?? Diverse Perspectives: They drive sales growth, market expansion, innovation and overall financial performance.

2?? Inclusive Culture starts at the boardroom: A diverse board fosters empathy and a sense of belonging, encouraging active engagement and fresh ideas.

3?? Reflecting Our Communities: Understanding the diversity of our customers is crucial for long-term success.

To truly champion DEI, boards must lead by example. This means:

? Setting DEI metrics based on benchmark data.

? Establishing realistic DEI goals grounded in evidence.

? Holding senior management accountable through DEI talent management processes and performance reviews.

In this AI era, democratizing technology also means ensuring diverse interdisciplinary teams to mitigate biases and risks. It’s time for board chairs and Lead directors to step up and integrate DEI into their strategic priorities. The future of business depends on it.

What steps are your boards taking to champion diversity in your organization? I’d love to hear your thoughts in the comments!

7. Boards Need a Reset on Digital Trust Oversight

Have you ever wondered what it truly takes to safeguard the digital trust of millions? The recent $52M settlement by Marriott International over data breaches is a stark reminder of the stakes involved in cybersecurity.

As a board director with over 25 years of technology and cybersecurity experience, I believe this is a pivotal moment for us to reassess and align cybersecurity strategies to business outcomes -both short "and" long-term objectives.

The Marriott case highlights the importance of proactive measures. Prolonged undetected system intrusions affected over 344 million customers. This isn't just a cautionary tale; it's a call to action for board directors and CEOs to prioritize cybersecurity at the highest levels.

8. Dennis Lockhart on Climate Risk

"What if the biggest risk to your organization isn’t the market downturn, but climate change?" This morning I had an enlightening conversation with the legend Dennis Lockhart, Former President of Federal Reserve Bank of Atlanta, at the FORTUNE Impact Initiative. His insights on the climate challenge are a wake-up call for the value creators. He rated Climate Risk’s importance a staggering 9 or 10 out of 10—an urgent reminder that we can no longer afford to view climate risks through a narrow lens.

As board directors and CEOs, we must adopt a holistic approach to climate risks. Here is my recommendation to the C-suite and Boardrooms:

Regulatory Frameworks Matter: The landscape is shifting. By looking at compliance comprehensively, we can avoid costly delays. It’s not just about ticking boxes; it’s about understanding the full impact on your business.

Governance is Key: Climate risks should be integrated into every board committee -strategy, human capital, technology, innovation, and risk. This isn’t just a checkbox exercise; it’s about ensuring that we allocate enough time and resources to address these challenges. If we don’t, value will erode.

Beyond the SEC: While the SEC Climate rule is important, let’s not get lost in the details. Use disclosure as a tool for strategic conversations. It’s about management evaluating the company’s position and driving meaningful change for both short and long term.

As organizations pivot towards compliance, transparency, and new business models, the implications for corporate strategy, governance, owning “tech strategy” direction and risk management are profound.

So, I pose this question to you: How is your board and C-suite preparing for the climate challenge?

9. Mayor Dickens on Disaster Preparedness and Crisis Management

"Preparation is not just a strategy; it's a mindset that can redefine our approach to boardroom challenges." This evening, I had the privilege of engaging in a thought-provoking conversation with Mayor Andre Dickens at Fortune's Impact Initiative. His insights on systems thinking and the importance of preparation resonated deeply, especially in today's fast-paced boardroom challenges.

One story that stood out was his experience preparing for Hurricane Helen. He emphasized the need to act proactively: "We prepared first. The hurricane went east of Atlanta. We prepared. Two days earlier, we prepared." This wasn't just about physical readiness; it was about coordination and communication. He reminded citizens to think strategically in a city known for its thousand hills: "Put the car in the highest point. Don't put your driver's license and other precious items in a Nike shoe box under the basement."

Mayor Dickens reminded Martin Luther King Jr quote -we share?the?same air,?same?water,?same?soil,?same?earth. In a world where we share the same air and water, collaboration becomes essential. We are all part of one community, and our collective preparedness can make a significant difference, reinforcing our interconnectedness and the power of our combined efforts.

What struck me most was his call to never take any storm or hurricane for granted. It's a powerful metaphor for our boardroom challenges facing various headwinds and tailwinds. Just as we must watch for the storms and hurricanes in nature, we must also be vigilant about the challenges in our industries.

So, I pose this question to you: How are you preparing for the storms in your boardroom and corporate landscape? Are you taking proactive steps to ensure your team is ready for whatever comes next? Remember, your proactive actions can shape the outcome of the challenges you face.?

10. Do We Need Chief AI Officer?

Jane's insights are always illuminating and pragmatic. She believes that AI is a disruptive technology that all executives need to embrace - and she has not come across any who are in denial about this wave of change.I couldn't agree more.

Great piece by Jim Euchner.I counsel Board Chairs and Lead Directors to seize the AI opportunities through new revenues, mitigate the risks through human-in-the-loop practices.

11. Why Strategy Matters?

Is history repeating itself in the tech world??Recently, I had the opportunity to discuss Nokia Board's strategic oversight failures during a podcast interview (https://shorturl.at/LGCXv) with Manuj Aggarwal. It’s a classic case of how a lack of nimbleness can lead to a loss of market relevance.

As I reflect on this, I can’t help but wonder about Samsung Electronics. Are they losing their competitive edge in the rapidly evolving AI landscape?

According to the BBC, Samsung has struggled to capitalize on the surging demand for AI technologies. NACD (National Association of Corporate Directors) has several sessions this week on strategy and technology oversight at their summit this week.

12. Silicon Valley's Political Divide

Per CNBC, there is growing political divide in Silicon Valley. I would say that this presents an opportunity for board directors to bridge gaps:

13. Activist At Pfizer

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:

14. Shape of Tech Leadership is Changing

The future of tech leadership is not just about innovation—it's about integration and resilience. In a world where technology is the backbone of every business, the role of tech leadership is evolving rapidly.

As 麦肯锡 partners highlight, we're moving beyond core tech to a realm where digital and AI influence business and functional leadership.

15. Gaining Investor Confidence

If you sit on Microsoft's Board, what advice would you offer Satya Nadella to gain investor confidence? In the rapidly evolving world of artificial intelligence, even giants like Microsoft face daunting challenges (https://lnkd.in/ebRXPEnt). Despite being an early leader in AI, Microsoft is grappling with financial strains and a stock performance that lags behind its competitors.

This situation raises a critical question: How can Microsoft maintain its competitive edge and justify its premium valuation in the AI race?The answer lies in innovation. Microsoft must embrace innovation not just as a buzzword, but as a profitable growth mantra. By industrializing innovation practices, they can significantly boost their organic growth rate. It's about creating a culture where innovation is not just encouraged but systematically integrated into the company's DNA.

? Human capital is another crucial element. The Human Capital & Compensation Committee should focus on investments in training and culture. Metrics on skills competencies such as business acumen, strategy consulting, emotional intelligence, growth mindset, and agility are essential. These are the skills that will drive Microsoft's future success.

? Diversity and employee engagement are equally important. Board oversight should include metrics on talent diversity and employee engagement. This is not just about ticking boxes; it's about creating a workforce that is capable of democratizing innovation across the portfolio.

? The board should prioritize a solution mindset and portfolio prioritization. Shifting focus from minimum viable products (MVPs) to minimum marketable products (MMPs) and scaling in core markets or entering new ones should be on the board's agenda.? Ensuring clear communication of AI strategy and its impact on financials to maintain investor confidence.

? Monitoring the OpenAI partnership and diversifying AI capabilities to mitigate risks.

? Overseeing the financial reporting changes to ensure they truly reflect the business structure and don't obscure performance metrics.

? Evaluating the competitive landscape in AI and ensuring Microsoft maintains its technological edge.

? Considering strategies to monetize AI investments more rapidly to justify the high capital expenditures.

? Refreshing the board with skills in technology, security, privacy, venture capital, and digital savviness is imperative. This will ensure that the board is equipped to navigate the complexities of the digital age.In the end, winning requires both incremental and radical innovation. Microsoft must scale new value propositions and platform business models while exploring growth through acquisitions and co-creation with external partners and venture capital ecosystems.

How do you see Board's critical role and innovation oversight in maintaining a competitive edge?

16. ESG Headwinds

In my view, boards should view the current ESG headwinds as an inflection point, similar to other transformative periods in corporate governance. The key is to stay ahead of the curve, turning potential challenges into strategic advantages.

17. How Boards Oversee Extraordinary Performance

Are you truly measuring the impact of your organization beyond just financial metrics??In today's rapidly evolving tech and regulatory landscape, overseeing non-financial metrics is crucial for value creation. It's not just about the numbers; it's about the talent and culture that drive those numbers.

Barry Conchie and Sarah Dalton have shed seminal research on how to effectively gauge talent and its impact on your organization.

As I always remind Board Chairs and Lead Directors, boards play a pivotal role in setting the direction and harnessing energy at all levels, including partnerships across business and government. But let’s not forget: execution is a continuum that runs parallel to strategy. It requires more than mere alignment; it demands a proactive approach.

To truly excel, we must embrace learning agility, a systems thinking mindset, and a process-oriented approach. These qualities are essential for navigating the complexities of today's business environment.

So, I pose this question to you: How are you ensuring that your board is equipped to measure and oversee non-financial metrics?Your thoughts could spark a valuable conversation.

18. How to Engage With Activists?

In a world where change is the only constant, the role of activist investors is evolving, and companies must adapt to thrive. Today's spotlight (https://shorturl.at/2nn17) from The Wall Street Journal on Mantle Ridge LP's billion-dollar stake in Air Products is a testament to the enduring influence of shareholder activism.

As someone deeply entrenched in technology and corporate governance, I find the insights (https://shorturl.at/J2im6) from Martin Lipton and his colleagues at Wachtell, Lipton, Rosen & Katz both timely and critical.

Activism is no longer just about financial returns; it's about shaping the future of industries. We're witnessing a shift towards issue-oriented activism, focusing on sustainability, diversity, equity, and inclusion. This is a call to action for companies to align their strategies with these values, ensuring they are not just profitable but also purposeful -inclusive capitalism.

The universal proxy rules may not have drastically changed the game, but they remind us of the importance of preparedness. Companies that regularly assess their vulnerabilities and maintain strong relationships with shareholders are better equipped to navigate activist campaigns. This proactive approach is not just a defensive strategy; it's a pathway to innovation and growth.

Key recommendations from the Martin's article resonate with my experience: forming a dedicated response team, monitoring market signals, and engaging with institutional investors are crucial steps. These actions not only protect against activist pressures but also foster a culture of transparency and trust.

Board unity, leadership unity and strategic communication are vital. As a board director, I have seen firsthand the power of a cohesive board in steering a company through turbulent times. It's about having a clear, long-term vision that resonates with all stakeholders, including skeptical institutional investors.

Negotiation with activists can be beneficial, but companies must be ready to defend their strategies vigorously. The goal is not just to survive an activist campaign but to emerge stronger and more aligned with a noble purpose.

In this era of rapid change, companies must be agile, innovative, and socially responsible. Let's embrace this challenge and transform it into an opportunity for growth and positive impact.What are your thoughts on the evolving landscape of shareholder activism? I'd love to hear your insights. Please like and comment below to join the conversation.

19. Leadership is not just about making decisions; it’s about crafting a journey that inspires others to follow.

In today's rapidly evolving business and geopolitical landscape, the role of a leader is more critical than ever. As we navigate through technological advancements and shifting market dynamics, the principles that guide us become our compass. One such guiding light is Douglas Conant's leadership philosophy, which emphasizes the importance of purpose-driven leadership and the power of connection.

Having spent over 25 years in technology and Board governance, I've seen firsthand how effective leadership can transform organizations. Conant’s principles resonate deeply with me, especially in the context of technology, corporate governance and digital resilience. They remind us that leadership is not a solo act; it’s about fostering an environment where every voice is heard and valued.

As CHROs, Board Chairs, and emerging leaders, we have a unique opportunity to redefine what leadership looks like in our organizations. It’s about being agile, embracing innovation, and prioritizing the well-being of our teams while driving profitable growth. The future demands leaders who are not just tech-savvy but also deeply committed to ethical practices and multi-stakeholder capitalism.

I encourage you to explore Doug's leadership principles (https://lnkd.in/eXn_i2tX) and reflect on your own journey. What values guide you? How can you align your leadership style with the needs of your organization and the communities you serve? Nayli Russo, Molly Davis, and Amy Federman were fabulous this afternoon.

Let’s engage in this conversation. Share your thoughts on leadership trends and how you’re adapting to the changes in your industry and your boards. If you found this post helpful, give it a like or share it with your network. Together, we can cultivate a new era of leadership that prioritizes purpose and innovation.

20. Board's Critical Role in Overseeing Strategic Plan

Fascinating insights from Carolyn Dewar as always. I would add fine tune technology strategy and the capabilities aligned to both short and long terms to the focus areas.

Tap the wisdom of “T” shaped board to co-create AI strategy that can act as a catalyst for both below the line and top line metrics.

Lastly, ensure CHRO has a seat on the table during these discussions. Because talent drives everything -strategy, technology, and risk.

21. Startup Challenges And the Need for Boards to Embrace VC Mindset

Innovation Alert!! In a world where giants dominate, innovation often finds itself on the sidelines. But what if I told you that the next wave of transformation is emerging from the very shadows of these tech behemoths?

As we witness the landscape of generative AI evolve, it's clear that the competition is becoming increasingly fierce. The recent news of Character.AI stepping back from the LLM race due to soaring costs is a stark reminder of the challenges startups face against the likes of OpenAI and Google. With OpenAI's monumental $6.6 billion funding round, the gap is widening, and the stakes are higher than ever.

22. Stormy Waters of Corporate Activism

Is your company ready to navigate the stormy waters of corporate activism? ??In today’s world, it’s not just about profits anymore. Companies are increasingly stepping into social, environmental, and geopolitical issues. But with great power comes great responsibility—and risk. A misstep can lead to backlash and boycotts that can tarnish even the most reputable brands. Learn more from my LinkedIn piece (https://shorturl.at/tK3dr).

The insights from McKinsey & Company partners resonated deeply with my own experiences. They emphasize that successful CEOs can deftly balance competing communication approaches while staying true to their core values.

Here is my advice to CEOs, Board Chairs, and Lead Directors to win the long game through higher purpose:

1. Authenticity and transparency are non-negotiable. When advocating for social or environmental causes, ensuring your messaging aligns with your company’s values is essential. This isn’t just about looking good; it’s about being genuine.

2. Listening is key. Today’s customers wield unprecedented power. Engaging with them through social media, surveys, and feedback loops can provide invaluable insights into what issues matter most to them. This proactive approach not only strengthens your brand but also helps you avoid the pitfalls of appearing tone-deaf.

3. Moreover, focus is crucial. Align your advocacy with your brand identity. Taking on too many issues or those that don’t resonate with your core offerings can dilute your message and alienate your audience. As leaders and board directors, we can champion and oversee multi-stakeholder capitalism, where purpose and profit go hand in hand. It’s about creating a lasting impact while driving innovation and growth.

What strategies have you found effective in aligning your corporate values with social issues?

23. Geopolitical Risk Is The Top Agenda For Boards in 2024

What if the next big risk to your organization isn’t just market volatility, but geopolitical tensions? ?? According to Bloomberg, tech stocks are feeling the heat from escalating geopolitical risks. This isn’t just a passing storm; it’s a wake-up call for boards everywhere. As I’ve shared in my 05/2024 LinkedIn Newsletter, (https://shorturl.at/XVce8) it’s time for boards to level up their oversight on these emerging threats.

Here’s why this matters:

1. Digital Divides: The ideological chasm between China, the EU, Russia, and the U.S. is widening. This signals the end of the traditional global operating model. Are your strategies adaptable enough to navigate this new landscape?

2. Avoid Concentration Risks: Relying too heavily on one market or supplier can spell disaster. It also includes tech concentration like relying on ONE Cloud provider. Diversification isn’t just smart; it’s essential for resilience.

3. Enterprise Maturity Models: Boards must ensure that senior management aligns technology, operations, and corporate structures with geopolitical realities. This isn’t just about compliance; it’s about future-proofing your organization.

4. Country Dependency Risk: Understanding the risks associated with sovereign data, security, privacy, and digital trust is crucial.

Are you assessing these risks effectively?

As a board director with over 25 years of experience, I’ve seen firsthand how nimble innovation and strategic foresight can turn challenges into opportunities. The time to act is now. Are your boards equipped to tackle these challenges?

24. The Flow of Capital Shifting And the Boards Must Step Up.

What if the future of your organization hinged on a single question: Are you ready to embrace transformative change??The news of OpenAI's valuation skyrocketing to $157 billion is more than just a headline; it’s a wake-up call for boards everywhere. As we witness the flow of capital shifting dramatically, the need for long-term thinking has never been more crucial. In my experience advising Board Chairs and Lead Directors, I’ve seen how the right incentives can expand the pie for everyone involved. It’s not just about profits; it’s about fostering a culture of innovation that rewards boldness and encourages every team member and partner to act like an owner.

25. Importance of Good Tech and Ethical Governance

In a world where technology shapes our lives, the stakes for good tech and ethical governance have never been higher.?As we witness Microsoft facing (https://shorturl.at/ewbsK) increased antitrust scrutiny in Germany, it’s a stark reminder that the Digital Markets Act (DMA) is not just a regulatory hurdle; it’s a pivotal moment for the future of digital ecosystems.

The DMA aims to rein in the influence of hyperscalers and large data-driven platforms, fundamentally reshaping the internet economy as we know it. For boards, this is a wake-up call. It's time to reassess the effectiveness of your Ethics & Compliance Programs. The responsibility starts in the boardroom, where compliance expertise must be a priority. Delegating oversight to audit committees, while convenient, often leads to a lack of focus on compliance amidst their busy agendas.

26. The Success of Financial Metrics is Inextricably Tied to Non-Financial Metrics.

Are you truly engaging and overseeing what matters on your boards??In today's fast-paced business landscape, the success of financial metrics is inextricablyy tied to non-financial metrics. If your organization is struggling to retain exceptional talent, that's not just a red flag—it's a resounding wake-up call that demands immediate attention. A recent study revealed that companies with a strong Employee Value Proposition (EVP) experience a staggering 69% lower turnover rate. This statistic isn’t just a number; it’s a testament to the power of prioritizing people alongside profits.

As board directors, we must engage on all matters and instill a holistic approach to governance. Having a Chief Human Resources Officer (CHRO) at the table during every board meeting isn’t just a checkbox; it’s a business imperative. The insights CHRO provides on engagement surveys, retention rates, and employer brand strength are invaluable in shaping a resilient workforce and the value creation.

27. The Auto Industry Stands At a Pivotal Crossroads

Pragmatic advice from Mark Fields on Auto Industry. The auto industry stands at a pivotal crossroads, where the path to electrification is both a challenge and an opportunity. As we navigate through 2023, only 7.6% of new vehicle sales in the U.S. are electric vehicles (EVs). This statistic isn't just a number; it's a call to action for all stakeholders—automakers, government entities, and power supply manufacturers—to unite in pursuit of the Biden administration's ambitious goal of 50% EV sales by 2030. With less than six years to achieve this, we must confront the consumer concerns that hinder EV adoption head-on.

Checkout my LinkedIn piece on the importance of strategic pivots (https://shorturl.at/AKf55).

In my experience advising Board Chairs and Lead Directors, I've seen that strategic pivots are not just beneficial; they are essential. The complexity of today's board directorship demands more than just oversight; it requires strategic agility and foresight. Boards must engage deeply with strategy, performance, risk, and talent to drive transformative change.

28. The Veto of California's SB 1047

The veto of California's SB 1047, a proposed AI safety bill, has sparked a crucial conversation about the future of artificial intelligence governance. The oversight of Technology and Compliance is a core Board Responsibility.

As I always say about the importance of business and governments working together for the value creation.This bill was not just another piece of legislation; it represented a significant step toward establishing clear and predictable safety standards for AI. Advocates (Research Community) argued it would provide a framework to mitigate risks, while opponents (Big Tech) claimed it could stifle innovation.

29. NASDAQ Turns 25th

?? Today marks a significant milestone: NASDAQ turns 25!?Reflecting on this journey, I can’t help but remember the day my picture graced the Nasdaq Marketsite. It was a moment of pride, not just for me, but for all of us who believe in the power of innovation and technology. All the credit goes to the visionary leadership of Roosevelt Giles and Johnnetta B. Cole.In 2024 alone, under Adena Friedman and Nelson Griggs’s leadership NASDAQ witnessed 104 IPOs, raising an astounding $50 to $60 billion. This is a testament to NASDAQ's role as a launchpad for growth-oriented companies. It brought new friends (pictured) to my network including S. Mitra Kalita, Ayo Alaran, MBA, PMP, Murang Pak, Yumi Christina Koh, and Eva Mann.

As the first electronic stock exchange, NASDAQ revolutionized trading by eliminating the need for physical trading floors. Its commitment to cutting-edge technology has made it one of the most efficient and reliable trading platforms globally. What’s truly remarkable is the caliber of companies that call NASDAQ home. Giants like Apple, Microsoft, and Google thrive here, showcasing the exchange's appeal to fast-growing, innovative firms. It’s not just a marketplace; it’s a symbol of modern business and technological advancement.

Moreover, NASDAQ's global reach allows companies from various sectors to access U.S. capital markets, enhancing its diversity and influence in global finance. This interconnectedness is vital for fostering innovation and driving economic growth worldwide.

As we celebrate NASDAQ's legacy, let’s also look to the future. How can we leverage this platform to champion multi-stakeholder capitalism and drive societal transformation? I invite you to share your thoughts on the evolving landscape of stock exchanges and their role in fostering innovation.

30. The Veto of California's SB 1047

The veto of California's SB 1047, a proposed AI safety bill, has sparked a crucial conversation about the future of artificial intelligence governance. This bill was not just another piece of legislation; it represented a significant step toward establishing clear and predictable safety standards for AI. Advocates argued it would provide a framework to mitigate risks, while opponents claimed it could stifle innovation. As we navigate this complex AI landscape, boards must oversee AI Strategy and AI Risk so that management takes proactive measures to ensure compliance and safety in their AI initiatives.

31. Khwaja’s Book Recommendation Alet!!

Leadership in the 21st century demands more than just vision; it requires understanding the intricate web of geopolitics, societal shifts, and technological advancements.?This Sunday, I was reminded of this during Fareed Zakaria’s enlightening interview with former UK Prime Minister Tony Blair.

As Blair shared insights from his new leadership manual, it became clear that the challenges we face today are not just about making decisions—they're about making informed, strategic choices that resonate with the complexities of our time.

32. The Race For Quantum Supremacy

In the race for quantum supremacy, the stakes are higher than ever, and the positive implications for our society are profound.?I wrote a LinkedIn piece (https://shorturl.at/N6dcF) back in 2021 on Quantum Computing, specifically in the context of Boardroom's Innovation Agenda.

Check out the fascinating Bloomberg segment from Hannah Fry, and don't miss Dario Gil's take on what it means to be a good tech in making purpose real.As we stand on the brink of a technological revolution, it's crucial to remember that with great power comes great responsibility. Quantum computing holds the promise of solving problems that were once thought insurmountable, but we must tread carefully.

At IBM, under Arvind Krishna's leadership, we believe that our mission—to be the catalyst that makes the world work better—should guide every step we take in this new frontier.The Responsible Quantum Initiative we’ve established is not just a set of guidelines; it’s a commitment to ensuring that our innovations contribute positively to society. I

33. Leadership in the financial world is evolving, and Adena Friedman is leading the charge.

Having visited Nasdaq a couple of times as part of the Boardroom Exchange, I was struck by the profound impact of Adena Friedman 's leadership. She embodies the essence of what it means to 'walk the talk' when it comes to diversity and inclusion. In an industry often criticized for its homogeneity, Adena is a beacon of hope for women aspiring to leadership roles in finance.

34. Innovation Thrives on Collaboration, Patience, and Foresight.

What if the key to innovation isn’t just in the technology we create, but in the relationships we build? ?? Recent news from The Wall Street Journal highlights that Apple is stepping back from joining OpenAI's investment round. This decision has profound implications for the tech landscape and emphasizes a critical truth: innovation thrives on collaboration, patience, and foresight.

As a board director with over 25 years in technology and governance, I’ve witnessed firsthand how the most successful CEOs don’t just focus on immediate gains. They cultivate deep, meaningful relationships with enlightened boards and investors. This approach fosters an environment where long-term thinking flourishes.

35. Pricing Strategy Matters in Boardroom Discussions.

Pricing strategy matters in boardroom discussions. It reminded me of my recent discussions at Chief Executive Group Board Retreat. Interest Rates have a direct impact on cash flows to make any strategic pivots. With the changes associated with the economy, boards must seek metrics on product-led growth strategies. For example, in the current no recession scenario, Car prices will be lower, but there will be no appetite for homes.

36. Recognition is Not Just a Pat On The Back; It’s a Call to Action.

"Recognition is not just a pat on the back; it’s a call to action." I’m deeply honored to be featured on the Board Prospects (https://shorturl.at/ybjyD) cover alongside esteemed AI experts like Lake Dai, Craig Silverman, Helen Sun, Ph.D., Ibrahim Gokcen, Jocelyn Seng, Lisa Costa, PhD CS, MBA, Jennifer Dulski, and the legends including Arianna Huffington, Admiral James Stavridis, and Frank Clyburn.

Thank you to Mark Rogers for this recognition and his unwavering commitment to making purpose real through innovative vision, Board Prospects, and commitment to board diversity.

37. No Board Can Afford to Ignore Antitrust Issues.

General Counsel, CEO, Board Alert!! In today's rapidly evolving regulatory landscape, one thing is clear: no board can afford to ignore antitrust issues.?The shift in antitrust enforcement from a consumer welfare focus to a broader consideration of market concentration is a game-changer. It’s no longer just about prices; it’s about how businesses impact workers, small enterprises, and the economy at large.Take note of the EU's Digital Services Act and Digital Markets Act. These regulations are not just about protecting consumers; they aim to hold major American tech firms accountable. The ongoing Google case is just one example of a larger movement to regulate tech giants like Apple, Amazon, and Meta.

38. Company’s Values Must Remain at the Forefront of its Strategy.

Enjoy Kate Rooney’s fascinating OpenAI reporting on CNBC. The tension between OpenAI’s original mission and its new profit-driven initiatives highlights a fundamental truth: a company’s values must remain at the forefront of its strategy.

For startups and established firms alike, here is my advice to the board directors to avoid chaos and leadership talent drain:

? Embrace change. Boards need to enhance their effectiveness through objective oversight and agile decision-making.

? Build a culture of trust. Align your board composition with diverse perspectives and foster multi-stakeholder mindset.

? Prioritize talent and culture as competitive advantages. A strong team is your best asset for long-term value creation.

39. What Happens When You Prioritize Profit Over Purpose.

In the ever-evolving landscape of AI technology, the recent turmoil at OpenAI serves as a stark reminder of the challenges that come with rapid growth and innovation. As executives and researchers depart amid internal disputes, it raises critical questions about the future of organizations that prioritize profit over purpose.

The tension between OpenAI’s original mission and its new profit-driven initiatives highlights a fundamental truth: a company’s values must remain at the forefront of its strategy. For startups and established firms alike, here is my advice to avoid chaos and talent drain:

40. Scale Value Creation Through Business and Govt Partnerships.

In a world where the intersection of business and government has never been more critical, the recent meeting between UK PM Keir Starmer and US business leaders is a powerful reminder of our role in shaping the future.

Starmer’s emphasis on wealth creation as a labor government priority is refreshing and counterintuitive. It challenges the traditional narrative that often pits business against social responsibility.?It is a good start by Starmer to scale value creation through business and govt partnerships.

Fabulous interview by CNBC’s Andrew Ross Sorkin as always and never miss it. I admire Andrew’s efforts in making purpose real through inclusive capitalism.

41. Boards Must Embrace AI as a Business and Societal Imperative.

AI isn’t just a technological advancement; it’s a transformative force that demands our attention at the boardroom table.?As the Justice Department (https://shorturl.at/bBUDg) emphasizes the need for companies to consider AI risks, it’s clear that the responsibility falls squarely on the shoulders of boards and senior management.

The landscape is shifting, and with it, the imperative to integrate AI governance into our corporate frameworks has never been more critical. Boards must not only engage and oversee the legal and compliance risks associated with AI but also embrace them as a business and societal imperative. This means fostering a culture of transparency and accountability, ensuring that the use of generative AI tools is not only effective but also ethical.

I counsel Board Chairs and Leader Directors to take these considerations in navigating this new terrain:

1. Instill Adaptive Governance: Embrace an agile governance model that can respond to the rapid evolution of AI technologies and regulations. This isn’t just about compliance; it’s about leading with purpose.

2. Double Down On Cultural Audits and Training: Ensure senior management infuses role-specific training programs that empower employees to manage AI risks effectively. A well-informed team is your first line of defense.

3. Active Oversight: Directors must engage and oversee AI capital allocations, ensuring that human oversight is embedded in every layer of AI deployment—from talent and data to security and societal impact.

4. Ethics and Trust: Cultivating an AI ethics mindset is essential. Trust is built through transparency, and it’s your duty of knowledge and duty of loyalty that your AI practices reflect your corporate values.

5. Meaningful Work through Human Capital Oversight: Redesign jobs and processes to incorporate diverse perspectives and human-in-the-loop practices. This not only mitigates risks but also enhances innovation.The future of AI governance is not just about risk management; it’s about creating a sustainable, ethical framework that benefits all stakeholders. Let’s champion a future where technology serves humanity, not the other way around.

42. Pivotal Shift in Semiconductor Industry.

LinkedinNews highlighted my take on the semiconductor factories being built in Mioddle East.

In an era where technology is evolving at breakneck speed, the conversation around compute paradigms is more critical than ever. Recent discussions between chip giants TSMC and Samsung Semiconductor about building megafactories in the Middle East highlight a pivotal shift in semiconductor industry.

Chip Giants Eye Middle-East

As we embrace Generative AI applications, the demand for power-performance efficiency is rising. This is not just a challenge; it’s an opportunity for innovation. As board directors, you must "own" full stack AI Strategy Direction by prioritizing tailored AI use cases and the infrastructure that supports them. Here are a few key considerations:

43. Tech Equity Is Board Agenda

Tech Equity Alert!! What if the future of value creation hinged on something as simple as access to technology??This morning, I had the privilege of engaging with Dr. Helene Gayle, the remarkable 11th president of Spelman College, at the World Affairs Council of Atlanta event. Dr. Gayle serves on several corporate boards including The Coca-Cola Company, Palo Alto Networks, Organon, and The Brookings Institution. This engagement reminded a similar TouchPoint I had with Anne-Marie Slaughter.

Her insights on democratizing higher purpose struck a chord with me.?Dr. Gayle is not just a moral leader; she's a beacon of hope. Her work in public health and social issues reminds us that education is more than just a degree—it's a launchpad for future innovators and leaders. One key takeaway from my conversation was the urgent need for educational institutions to have AI infrastructure. Imagine a world where every student, regardless of their background, has the AI technology and AI infrastructure to compete on a level playing field. AI should not be exclusive to Big Tech. This isn't just a dream; it's a necessity.

As I always say, we need more business, education, and government partnerships to prioritize tech equity. By doing so, they empower the next generation and scale value creators for the greater good in an increasingly digital world. Dr. Gayle shared profound wisdom that resonated deeply with me:- College education still matters—it's a foundation for future success.- Institutions like Spelman are mission-oriented and dedicated to giving back to the community.- A diverse curriculum is essential; students should explore arts and history, not just a single pathway. For example, prompt engineers need deep exposure to arts, history, and ethics.- Each of us has the power to create positive change.

Rickey Bevington was fabulous and illuminating with her moderation. World Affairs Council of Atlanta is on the rise under the leadership of Rickey Bevington and Gary Sergent.Another highlight was the warm welcome from the emerging leader Noorin Khan and the great TouchPoints with Thomas Vicino, Jeremy Kopkas, and Wyndolyn Bell, M.D.These insights remind us that education is about more than knowledge; it's about fostering higher purpose and greater good.What are your thoughts on the role of education and tech equity in shaping our future? How can we ensure all students have equal access to the necessary resources to succeed?

44. Board Lessons Due to CrowdStrike led Outage!!

In the ever-evolving cybersecurity and business resiliency landscape, recent events remind us of the critical importance of robust systemic governance at the board level. The recent class action lawsuit against CrowdStrike e highlights a pivotal lesson: technology and cybersecurity expertise on boards is no longer optional—it's essential.

The implications of simultaneous software updates leading to massive flight disruptions should be a wake-up call for all organizations.Boards must be proactive in restructuring their board composition to include members who understand the complexities of technology and cybersecurity. This isn't just about compliance but safeguarding the organization’s future.

Key areas of focus should include metrics on DevSecOps maturity, third-party risks, and the control these external partners have over our IT environments. Digging deep into critical infrastructure, change control processes, and recovery strategies is crucial. Moreover, resilience in the face of disruption is not just a buzzword; it’s a necessity. Organizations must prioritize third-party risk management to identify and mitigate vulnerabilities before they escalate into crises.

As capable board directors, we are responsible for championing these discussions at the board level. The stakes are high, and the time for action is now. I encourage you to reflect on your board's composition and the expertise it brings. Are you equipped to navigate the complexities of today’s digital landscape?

Let’s discuss how we can collectively elevate our governance practices. Share your thoughts in the comments below.

45. Today's Fast-Paced Activist Landscape Requires a Blend of Vision and Adaptability.

CEO, Activist Engagement Alert!! Navigating the complexities of board engagement in today's fast-paced Activist landscape requires a blend of vision and adaptability.?At the recent Nasdaq Risk Summit, I connected with fellow Board Directors who brought diverse insights on strategy, technology, and risk management. The discussions, particularly the fireside chat with Bill Anderson, Senior Managing Director, Evercore, on Activist Engagement, sparked a deeper reflection on how we, as board members, can effectively respond to the evolving demands of Activists. David N. Lawrence was fabulous with his moderation. Check out the fabulous fireside chat here:(https://lnkd.in/eqxyAuZa).

It reminded me on my recent conversations and wisdom from Leo E. Strine Jr., Of Counsel at Wachtell, Lipton, Rosen & Katz (Former Chief Justice of Delaware Court of Chanceryt) on stakeholder governance frameworks, corporate purpose, and Activism. It became clear that the corporate governance landscape is shifting. Activist investors are not just disruptors; in special cases they can be valuable partners in driving long-term value.

Here is my advice for Board Chairs and Lead Directors when faced with these Activist challenges:

? Stay committed to your long-term vision. Avoid the temptation of short-term gains that can derail sustainable growth.

? Enhance board effectiveness through objectivity and agile decision-making. This is crucial in a world where speed and precision matter.

? Embrace openness. Learn from the questions activists pose and use that knowledge to benefit all stakeholders.

? Seek win-win scenarios. Leverage innovation and technology to streamline operations and foster profitable growth.

? Build a cohesive board that prioritizes trust and multi-stakeholder engagement. The chemistry among board members is essential for agility and a long-term mindset.

? Present a unified front with management on strategy and value creation. Consistency is vital to instilling confidence in your stakeholders.

? Ensure your board is equipped to oversee earnings growth through customer retention and new revenue streams.

As we look to the future, let's embrace the opportunities that come with change. The path to success lies in our ability to adapt, innovate, and engage meaningfully with all stakeholders.

46. AI's True Cost Extends Far Beyond the Financial—it's a matter of Sustainability and a Higher Purpose!

AI's true cost extends far beyond the financial—it's a matter of sustainability and a higher purpose! As we navigate the intersection of artificial intelligence and environmental, social, and governance (ESG) principles, it’s clear that boards must take ownership of this critical agenda. Today's insights from Fortune’s newsletter and The Washington Post highlight a stark reality: the environmental impact of AI is significant. For instance, OpenAI’s ChatGPT consumes over 27 liters of water to generate a single 100-word email weekly for a year. Imagine the implications if millions of us relied on AI for our communications.

This is a wake-up call for boards to integrate climate risk into their strategic frameworks.

Here are some actionable steps I have been recommending to the Board Chairs, lead Directors, and the C-suite to be on the right side of the history.

? Conduct a readiness assessment for climate risk reporting to ensure transparency and accountability.

? Align your AI strategy with climate metrics, viewing sustainability as a competitive edge.

? Oversee capital allocations for AI initiatives that prioritize carbon accounting and greenhouse gas data collection.

? Treat AI and data skills as essential tools in the fight against climate change, embedding governance into corporate responsibility.

? Familiarize yourself with sustainability disclosure standards like IFRS, GRI, and TCFD to enhance your board's oversight capabilities.

? Engage proactively in regulatory discussions to shape favorable policies that balance business interests with ethical practices.The path forward may involve short-term costs, but think of these as investments in a sustainable future. Strong governance and compliance lead to enhanced stakeholder trust, improved brand reputation, and ultimately, increased shareholder value.Let’s embrace this challenge together.

How is your board addressing the interplay between AI and sustainability? Share your thoughts in the comments.

47. Technological Advancements and Ahifting Geopolitical Landscapes

Is your board truly ready for the future? ???As we navigate an era marked by rapid technological advancements and shifting geopolitical landscapes, the role of the board of directors has never been more crucial. McKinsey & Company's Board Effectiveness Framework highlights 15 essential areas for board focus, but I believe we must add one more: Innovation/Technology.

Reflecting on the failures and triumphs of companies like Nokia and Swissair versus IKEA and the LEGO Group, it's clear that boards “owning” strategic direction must embrace technology and innovation at its core. These elements are not just add-ons but essential to steering the ship in turbulent waters. In today's world, where digital transformation and geopolitical risks are a constant, boards must prioritize their tech stack.

The insights from Dominic Barton, Frithjof Norman Lund, and Ziad Haider on the Board’s Geopolitical Risk Agenda are invaluable and a breath of fresh air. They remind us that understanding the intersection of technology and geopolitics is vital for sustainable growth.?Thank You Sean Brown for taking my questions and your moderation is always illuminating.

Imagine a board that not only understands the technology landscape but actively shapes its strategy around it. This is not just about keeping pace; it's about leading the charge. When boards embrace innovation, they unlock new avenues for growth and resilience.

Let's challenge ourselves: How can we ensure that our boards are not just reactive but proactive in their approach to technology? I invite you to share your thoughts below. What do you believe is the most critical aspect of boards “owning” strategy direction in this tech-driven age?

48. AI Maturity From CFO Lens

Worthy read!! Bridget Haby, Werner Rehm, and Stefan Roos have illuminated the current maturity of Gen AI for CFO Audience.

??Prompts matter a lot.

??Human judgment is still needed in these expert cases to identify “correct” as opposed to “wrong,” either in the input for the system or the output. These models have no inherent judgment of the “truth,” and so they still need expert guidance.

49. The True Value of AI Lies In Its Application Layer

Per The Wall Street Journal, Rohit Prasad?has been at the vanguard of artificial intelligence. Now, he is leading the company’s effort to catch up in the AI race.

Khwaja's Take: The generative AI revolution is not just about technology; it's about humanity and value creation for the greater good. As we stand on the brink of transformative change, the conversation around AI must shift from mere innovation to value creation for all.

In my discussions with C-suite executives and board directors, a common theme emerges: the true value of AI lies in its application layer, where it can solve core business challenges while enhancing human capabilities.

To navigate this landscape effectively, we must adopt a human-centric approach. If you are a CIO you should prioritize user-friendly interfaces and systems that adapt based on feedback. This ensures that AI complements rather than replaces the human element in your workflows.

50. CROWDSTRIKE REFLECTIONS FOR BOARDS

What if I told you that the world’s largest IT outage could have been a wake-up call for boards everywhere? ??Recent events have shown us that business resiliency isn’t just a buzzword—it’s a necessity. The ongoing investigation into CrowdStrike’s massive IT failure has left many in the boardroom scrambling for answers.

As someone who has spent over 25 years navigating the intersections of technology, cybersecurity and board governance, I can’t stress enough the importance of engaging and future proofing the business resiliency.

Here’s my counsel for board chairs and lead directors:

? Prioritize Software Supply Chain Risks: This isn’t just a compliance issue; it’s a critical component of your business resiliency strategy. Make it a board agenda item.

51. Arvind Is The Legend In Driving Multistakeholder Value Through Government And Business Partnerships

The partnerships between government and business has never been more critical in today's rapidly evolving landscape. As board directors, we must recognize the immense value that strategic partnerships between government and businesses can create. Leaders like Arvind Krishna exemplify this forward-thinking mindset, addressing current and future challenges through AI, blockchain, quantum including quantum safe technologies.Geopolitical risks and the acceleration of AI are reshaping the board's oversight responsibilities. This was a key takeaway from my discussions with board chairs and lead directors at the Nasdaq Board Room Exchange.

Learn more from my LinkedIn piece (https://shorturl.at/MRiMx).

52. Climate Week Alert!!

Climate Week Opens in NYC. Are your Boards prepared for the climate reckoning? ???According to CNBC, banks face a staggering 30% risk from climate-related events. This isn't just a statistic; it's a wake-up call for boards and C-suite leaders everywhere. As a board director with over 25 years of experience, I've seen firsthand how climate-related risks can disrupt business models and threaten long-term value. The SEC's Climate Disclosure Rule is not just another compliance hurdle; it's an opportunity to integrate climate into the very fabric of your strategy.

Here's how you can turn climate risk into a competitive advantage:

? Assess Your Readiness: Begin with a comprehensive evaluation of your organization's climate risk reporting processes. Are you prepared to disclose material impacts?

? Align Climate Metrics with Strategy: Treat sustainability as a core component of your business model. The financial implications of offsets and renewable energy credits (RECs) must be part of your value proposition.

? Oversee Capital Allocation: Ensure senior management is equipped to navigate the complexities of carbon accounting and greenhouse gas (GHG) data collection. Innovative business models can emerge from this focus.

? Embrace Technology: Data skills are essential in the fight against climate change. Governance around these technologies should be a pillar of corporate responsibility.

? Strengthen/Refresh Board Composition: Improve your board's structure to oversee climate risk effectively. Seek metrics that cover both physical and transition-related risks.

? Familiarize with Standards: Board directors must understand sustainability disclosure frameworks like IFRS, GRI, CDP, and TCFD. This knowledge is crucial for informed decision-making.

? Revise Assessment Processes: Regularly update your processes for identifying and managing climate risks. This should be a continuous effort, not a one-time task.The future of business hinges on how we respond to climate challenges today.

Are you ready to lead your organization into a sustainable future? I'd love to hear your thoughts! What steps is your board taking to address climate-related risks? Share your insights in the comments.

53. Boards Must Oversee Full Stack AI Strategy

What if the next big leap in technology isn’t just about faster chips, but smarter strategies? LinkedIn News highlighted my take on TSMC and Samsung Semiconductor building megafactories in the Middle East.

More here:https://lnkd.in/e7PUpDavWe are witnessing a pivotal moment in the semiconductor industry. The rise of Generative AI applications is driving an insatiable demand for power-performance efficiency. But here’s the kicker: this isn’t merely a challenge; it’s a golden opportunity for innovation.

As board directors, it’s time to take the reins on full-stack AI strategy. This means prioritizing tailored AI use cases and the infrastructure that supports them.

Here are a few key insights to consider:

1. Optimize Performance, Manage Costs: Custom-designed silicon isn’t just a trend; it’s a pathway to significant synergies and value creation. Investing in in-house capabilities can set you apart.

2. Tackle Latency Issues: Memory and networking latency can cripple system performance. Embrace chiplets and explore in-memory compute technologies as essential components of your roadmap.

3. Prepare for the Future: Emerging compute paradigms like photonic and quantum computing are on the horizon. Ensure your CHRO has a seat at the table to develop the necessary internal software, algorithms, and coding skills. Remember, talent drives everything—strategy and risk alike.

In the words of Peter Drucker, “The best way to predict the future is to create it.” Let’s not just react to changes; let’s lead them.I’d love to hear your thoughts: How is your board or your organization preparing for these shifts in technology?

Share your insights in the comments below!

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ABOUT KHWAJA SHAIK

Khwaja Shaik, a digital expert and cyber-savvy board director, brings over 25 years of global experience in technology, cybersecurity, sustainability, nimble innovation, and fintech. He is a sought-after advisor for CEOs and boards globally, providing invaluable insights at the nexus of technology, cybersecurity, and financial services. Khwaja drives profitable growth through innovation, digital acceleration, and risk management. With a career spanning renowned companies like IBM, Bank of America Merrill Lynch, Al Rostamani Group, and PwC, he is internationally acknowledged as an authority in corporate governance, technology governance, VC/startup incubation, and digital resilience.

Khwaja advises CEOs, Boards, and Startups on carving out Future-Fit Tech strategies aligned with board priorities. But beyond his illustrious career, Khwaja's true calling lies in altruism. He staunchly believes in weaving noble purpose into business strategies, championing a model of multi-stakeholder capitalism. Committed to societal transformation, he strives to leave a profound impact through socially responsible, ethical technology, and privacy-centric practices.

Khwaja is a visionary leader with a proven track record of success in transforming businesses through innovation and digital. He has an innate understanding of how to harness technology to create better customer experiences and future-proof operations.

At Bank of America, he managed risk and infused Fintech and Cloud best practices into the firm’s strategy, saving the company $1.1 billion per year during the 2008 financial crisis. At PwC, he incubated new businesses to grow revenue across multiple economic cycles, reshaping industry and platform operating models— digitizing end-to-end business processes to capture value, and protecting firms from cyberattacks through digital resilience.

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

Khwaja delivered a modern banking platform and transformed the Omnichannel customer experience through world's largest Contact Center platform, serving 1 billion calls, as part of BofA's M&A (CFC, MBNA, Fleet, etc.) to support the AI-led growth strategy.

Khwaja is one of the most exceptional IBMers appointed, with the rare distinction of IBM Academy of Technology member. Holds many patents serves on IBM’s Invention Board. Khwaja is one of the top 100 leaders elevating corporate purpose, driving AI ethics, privacy, data stewardship, regulatory/compliance and sustainability. He provides the direction of IBM's long-term strategy through ESG and good tech.

Khwaja serves on the Museum of Science & History and University of North Florida boards to promote economic equity, social, diversity, and inclusion for the prosperity of all. He teaches emerging tech, systemic risks, cybersecurity, AI ethics, and privacy-by-design efforts at University of North Florida and Competent Boards.

Khwaja is a frequent speaker on Board Practices, Technology, and Cybersecurity at NACD (National Association of Corporate Directors), Competent Boards, New York University School of Law, American College of Corporate Directors, Boardswell etc.

Khwaja is a Fellow of The Herndon Foundation Board Institute, sponsored by Nasdaq & Atlanta Life. Khwaja is proud to be part of both Ascend Leadership's Pinnacle Aspiring Directors Academy and University of North Carolina at Chapel Hill School of Law's 2023 DDI Board Boot Camp. Khwaja holds an MBA and an Engineering degree. Khwaja lived in India, Middle East, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 24 years with two remarkable 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

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