The Importance of Digital Literacy for Board Directors

Board Directors are responsible for controlling the direction, strategy and performance of a business. They are also tasked with representing shareholders’ interests and making sure that management is delivering value. In order to do this, boards need to decide what tasks fall under their control and which ones can be delegated to the top management.

They also have a say on important strategic issues like mergers and acquisitions such as stock splits, share repurchase programs, as well as dividend declarations. Additionally, they are tasked with hiring and firing the CEO and ascertaining compensation for the top executives. To accomplish this, they need to be able to ask tough questions and engage in constructive debate. They are also responsible for the company’s financial health and compliance with ethical and legal standards.

A competent board member is capable of understanding complex issues and providing information to improve the effectiveness of the board. They can also build an environment that encourages collaboration and communication in the boardroom. They are familiar with the industry they work in and have the depth of knowledge that allows them to provide critical advice.

As the world becomes more complex our corporate responsibilities increase. The COVID-19 pandemic has shown us to increase our speed and agility to keep pace with. In the aftermath the majority of boards have expanded their scope of responsibilities and are focusing on topics like culture and talent development, sustainability, risk and resilience management, and technology and digitization. To accomplish this, board members need to be digitally literate and be prepared for the increased level of involvement required to create forward-thinking agendas.

read