Report brings together expertise from 24-member Commission, led by AMD Lead Independent Director Nora Denzel and Best Buy Board Chair David Kenny
WASHINGTON, Oct. 7, 2024 /PRNewswire/ — Today, the National Association of Corporate Directors (NACD) released its 2024 NACD Blue Ribbon Commission report, “Technology Leadership in the Boardroom: Driving Trust and Value” , to help corporate boards navigate the promise of technology and data-driven innovation—as well as the blistering pace of change – that are central to companies’ growth strategies.
This report comes at a critical moment in time as boards are challenged with capturing the opportunities presented by rapidly evolving technologies while also managing new risks. In fact, NACD’s 2024 Public Company Board Practices Oversight Survey reported that only 34% of directors say the board and management are “strongly aligned” on the company’s vulnerability to the impact of transformative technologies.
The Report reflects the expertise and insights of a 24-member Commission – governance leaders, investors, and subject-matter experts representing more than 70 boards – that explored how the board’s oversight of technology and data can drive both trust and value. Launched today at the NACD Directors Summit™, the report includes specific recommendations for strengthening technology leadership in the boardroom, tools boards can apply immediately to address the challenges and opportunities posed by rapid technological advances, including AI, clean energy, robotics, and quantum computing.
“The rapid pace of change and rising trust concerns are complicating board governance around transformative technologies. This year’s NACD Blue Ribbon Commission Report highlights critical risks for boards: irrelevancy, compressed timelines, innovation versus expertise, stakeholder trust, and fragmented regulation,” said Nora Denzel, co-chair of the NACD Blue Ribbon Commission. “Boards must strengthen oversight, deepen insight and develop foresight along with adopting a strategy-centered approach that balances risk and opportunity.”
Boards can enhance their technology governance not through a dramatic overhaul of their own workings, but by adapting their fundamentals, including their structure, composition, agenda setting and reporting metrics. The 2024 Blue Ribbon Commission encourages boards to implement the recommended actions in this report, regardless of their maturity level, to improve technology governance. Directors are urged to adopt a “learn-it-all” mindset.
“While many companies are managing the risks of macro-level uncertainty, the biggest technology risk now is failing to adopt emerging technology. To make informed decisions for the future, we must challenge management’s core assumptions about customers, competitors, and our own capabilities,” said David Kenny, co-chair of the NACD Blue Ribbon Commission. “Boards face a tough balancing act: they need to encourage management to innovate quickly while also acting as a steward of hard-earned trust with both customers and shareholders.”
The report toolkits include contributions from NACD, KPMG, Russell Reynolds Associates, Pearl Meyer and Sidley Austin LLP. An executive overview of the Report is available here (LINK).
NACD President and CEO Peter Gleason added, “This report is a continuation of NACD’s deep expertise in technology, including AI and cybersecurity. It provides a practical blueprint with detailed recommendations focused on three core imperatives, along with a toolkit to support implementation. This moment demands greater technology focus and strategic leadership from every director.”
More information on all the 2024 Commissioners can be found on the Blue Ribbon Commission website.
10 Recommendations for Technology Leadership in the Boardroom
Strengthen Oversight
Upgrade board structures for technology governance.Clearly define the board’s role in data oversight.Define decision-making authorities for technology at board and management levels.Ensure trustworthy technology use by aligning it with the organization’s purpose and values.
Deepen Insight
Establish and maintain necessary technology proficiency among the board.Evaluate director and board technology proficiency.Ensure appropriate and clear metrics for technology oversight.
Develop Foresight
Recognize technology as a core element of long-term strategy.Design board calendars and agendas to ensure appropriate focus on forward-looking discussions.Enable exploratory board and management technology discussions.
About NACD
The National Association of Corporate Directors® (NACD®) is the leading member organization for corporate directors who want to expand their knowledge, grow their network and maximize their potential. For more than 47 years, NACD has helped boards and the business community elevate their performance and create long-term value. Our leadership continues to raise standards of excellence and advance board effectiveness at thousands of member companies.
NACD’s value insights, professional development events and resources, such as the NACD Directors Summit™ and the NACD Directorship Certification® program, support boards in navigating complex challenges. With a growing network of more than 24,000 members across more than 20 Chapters, boards are better equipped to make well-informed decisions on the critical, strategic issues facing their businesses today. Learn more at www.nacdonline.org.
Press Contacts
Shannon Bernauer
NACD
sbernauer@nacdonline.org
571-367-3688
Jackie Hart
G&S Business Communications
Jhart@gscommunications.com
929-390-5431
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SOURCE National Association of Corporate Directors
