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