Each year, host TK Kerstetter and Paula Loop, Leader of PwC’s Governance Insights Center, make predictions for the year ahead. What strategic and governance challenges will boards face in 2019?
One year ago, Kerstetter and Loop predicted that 2018 would be the “Year of board composition, investor influence, and digital transformation”. Not only did these predictions prove valid, but we saw a sprinkling of other trends and regulations (e.g., ESG, #MeToo, CEO pay ratio) that made for an interesting 2018 landscape.
In this episode, Loop and Kerstetter outline five trends that boards can expect to encounter in the year ahead. While some predictions (e.g., corporate culture) may seem obvious, Loop and Kerstetter encourage boards to think about these boardroom issues more holistically than they have in the past:
There’s not a company out there…that’s not going through some kind of transformation these days–either a digital transformation, a sales transformation, a finance organization transformation–something along these lines where they really need…employees to buy in to this transformational change, to ready themselves, to be agile, to be able to do things differently. So board needs to expand their thinking around culture, to not just focus on ‘What are the risks associated? Could we have a reputational problem?’ and so forth. But to think more about ‘Do we have the right culture here to embrace our strategy and take it to the next level?’
A key theme throughout this episode is transformation, which is powering nearly every major strategic and governance challenge that boards will face this year.
What can boards expect on the road ahead? How can board and committee leadership ensure their board is prepared? Don’t miss one of our most popular episodes of the year.