Change is something that every organisation faces dozens or even hundreds of times each day. Usually, these changes relate to the ongoing challenges of operating the organisation – negotiating with new suppliers, entering new markets, implementing new technologies, hiring new employees, and so on. Most organisations have management teams that are very adept at anticipating and managing these types of changes, which are normally predictable outcomes of their business strategies and operations.
In this environment, everything and anything may change at any time as category boundaries are blurred, supply chains are disrupted, and long-standing business models become obsolete. With change, however, comes opportunity. Technological advances enable organisations to generate new revenues by targeting new customers, new sectors, and access new geographies while more fully automating back office activities and divesting of declining assets to reduce costs. The challenge for organisations is to recognise when disruptive change is occurring and to act quickly and decisively when it does.
In this environment of ongoing, tumultuous change, organisations and their management and boards of directors must respond quickly and adeptly if they are to effectively address all the disruptive changes that surround and affect them. For boards of directors, this often requires greater oversight – expanding their scope to include activities and areas that were not traditionally part of their mandate. At the same time, boards must ensure that management provides them with deeper insights into the organisation’s activities so directors can clearly understand all of potential opportunities and risks.
This publication examines some of the major changes likely to affect organisations and their boards of directors in 2014.
Our objective is not to provide solutions to the issues discussed since the best approach for every organisation will depend on its own particular circumstances. Instead, our goal is to assist directors in identifying the issues of importance to their organisations, and to help promote boardroom discussions around the strategies and options management has put forward to address current and future challenges, mitigate the risks, and seize the opportunities that lie ahead.
Specialists from Deloitte member firms (“Deloitte”) around the globe who work closely with boards of directors were interviewed to help address each of the issues discussed in this publication. They have provided their insights into the opportunities and risks in each area that boards and management must address in order to develop the right strategies.
Each article also includes questions that directors may ask to further explore the issues with their own boards. In addition, articles are supported with tools and resources so directors can “dig deeper” to broaden their understanding of the issues and improve their board’s effectiveness in dealing with them. These additional resources can be obtained by contacting a Deloitte partner.
Read the full report . . . . Directors Alert 2014 – Boardroom strategies in an era of disruptive change
If you have any questions or require a more detailed discussion, all regional contacts are provided at the end of the report.