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Wednesday, 01 May 2019 14:32

Culture, Digital Transformation and Other Concerns Boards Must Be Ready to Discuss

As corporate boards gather for annual shareholder meetings, the issues in the spotlight are defined by forces driving both business growth and risk. BDO’s Amy Rojik offers suggestions for how boards can be prepared to communicate with stakeholders this year.

For corporate boards, spring marks the arrival of annual shareholder meeting season. Every year, shareholders gather for board meetings armed with questions and concerns that, if not sufficiently addressed, may hamper their confidence in a business’s ability to manage risk and sustain long-term value creation.

In 2019, the list of issues on boards’ radars are defined by the forces driving both business growth and risk, in equal measure. This year’s key areas of shareholder concern can be grouped into four categories: digital transformation and data protection, people and culture, market movement and regulation and reporting. Here are some suggestions for how boards can address them.

Digital Transformation & Data Protection

With organizations facing increasing pressure to streamline and optimize every aspect of their business, digital transformation is at the crux of business innovation. As a result, it is nearly impossible to walk into a boardroom without hearing the phrase mentioned. And for good reason — having a digital transformation strategy is no longer optional; it is necessary for survival in today’s digital economy. Corporate boards should expect shareholders to question how much is being spent on digital transformation, who is leading the charge on strategy, what the return on investment is and how the organization compares to its peers. In communicating a digital strategy to stakeholders, linking it to clear key performance indicators (KPIs) and business objectives is critical.