Are you asking the right questions in the boardroom?
I recently spoke with the CEO of a technology company and when asked how he and his team were doing he said they had never been more productive.
Everyone was happier and healthier – spending more time at home, less time commuting. Less wasted time around the “water cooler” or attending unnecessary meetings. They were exercising more, spending more time with family and more focused when they were working. His biggest concern was ensuring that his team stopped working at the end of the day and didn’t burn out and whether it was sustainable.
I have heard similar stories from other companies in the services industry. Video conferenced meetings even end up being better for sales because it becomes easier to cut to the chase. Less time spent entertaining; more time focused on the business value proposition.
Certainly, relationship building is harder if you do not already know each other, but it is also entirely possible to start new relationships remotely and allow them to flourish through virtual connections. As the paradigm is shifting for everyone, the expectation of showing up “in person” is diminishing. That may be a bad thing in the long term, but for now, it’s changed the rules.
For boards, they, too, have shifted to virtual meetings. Most board members say once they learned how to use the technology, it was a good thing. Less time traveling during a global pandemic certainly makes sense, but now it is on trend to continue. While many miss the social aspect of interacting with fellow board members, the reality is it can be more productive on an individual level and even at a group level when it is managed correctly.
This has many implications in the boardroom.
First, the organization will change forever. This forced experiment should be analyzed carefully for the potential longer-term impact on the organization. If a large part of the work force is not only more productive, but happier working remotely, can it change the economics? On the flip side, is it really sustainable indefinitely? Consider some of the key questions:
Could we modify how we work so we need less office space? Can that big real estate expense be reduced? No one needs a big corner office or private cubicle anymore if most of the work can be done remotely. Office space will be needed for high value in-person time like workshopping or strategic planning as a group, which means more conference space, less personal spaces. Storage of IT equipment and shared services may be required, but rows and rows of cubicles will not. This changes the dynamics of the cost infrastructure and how you think about real estate.
If this shift is permanent, will you provide personal computer equipment to employees to accommodate remote interactions in a more secure way (i.e. cameras, computers, printers, scanners, etc.)?
How do you ensure employees have the internet speed that is required as well as the cybersecurity protections in place? Would you negotiate with internet service providers differently?
What about protecting highly sensitive information that could be damaging to the company if a personal computer were hacked or someone’s child inadvertently emailed it to an entire list from Mom or Dad’s computer? How can you reduce vulnerabilities in the short and long-term?
Can you tap into more talent by hiring people who live anywhere instead only those willing to relocate to where you are?
Can you offer more training and development remotely than in -person to help your work force adopt new skills? What do you need to do to offer that?
Can you pay for talent and performance versus “people in seats” and adjust the way to measure productivity and success to allow for a greater return on investment of your work force?
There is a long list of questions and these are just a few, but these are the things boards should start thinking about now. Eventually, some type of vaccine or treatment will be rolled out for this virus. But more health crises could be on the way and absent that, employees will be looking for companies to provide a clear path forward. Many will demand permanent work from home options. Work closely with your CHRO to survey employees and monitor productivity so that when you need to help your CEO make critical work force decisions, you have the data you need to be fully informed.
Second, boards should think about how they, as a cohesive group, can function more effectively by using off-board meeting cycle time for outside education, as well as more opportunities to hear from senior executives who usually don’t make the cut in the board meeting agenda. In a virtual setting, it’s easy enough to schedule a- one-hour briefing that you take over a morning coffee or lunch break at home. Could you hear from more people in the organization so you have a deeper understanding of what is happening? Could you learn about new subject matter areas that are important but not prioritized during the typical board agenda?
There are many ways the board agenda, itself, can be improved through a more effective blend of virtual off-cycle briefings, education and meetings and better planning for robust discussion when in person.
This health crisis has forced every company to innovate and to experiment with new models of working. In the boardroom, reflection and analysis is critical to leveraging what we have learned. Start gathering these data points now so you can make smart choices when employees ask to continue working from home indefinitely.
If you are interested in learning more about future trends in boardroom governance, subscribe to my blog. My new book, Disruption in the Boardroom, by Apress will be released this September. Stay tuned for more information about how everything in the boardroom is about to change.
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