Solution-oriented people do not just solve problems. They help identify the source of a challenge or question and provide a correct, or better, way of doing things. Solution-oriented people find a way by using critical thinking.
Stakeholders know a storm is coming but most do not have a framework that is adaptable to constant change, complexity, and risk. What you need is a navigator to help create your competitive advantage amenable to the age of disruption. Below, we explore the disruption problem as it relates to 4 holistic, objective pillars. The maximum value for you would be found in the intersection of 4 pillars using your specific business details.
Assumptions
The inherent governance characteristic of an International Foreign Reporting Standards’ principles-based framework has the potential of different interpretations for similar transactions in a US GAAP rule-based conceptual approach. In the US, as digital requirements increase, regulatory and compliance requirements also increase. It is important to note that compliance alone is not sufficient for good governance.
Problem Definition
If your company does not Implement an effective strategy to defend your business against Disruption Era threats and use potential technology opportunities, you will not survive. Think unexpected, new examples of Amazon retail, Uber transport, Airbnb lodge, or your industry’s transformation.
Technology
You will need technological fixes for unforeseen or unintended consequences of new technologies. Technologies are invented and developed to solve problems but can create other problems in the process.
Using artificial intelligence for hiring is on the rise but ethics questions continue. According to Executive Networks, your company should require your technology partners to be transparent in the use of AI and be able to prove it is being used responsibly.
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When I named my Think-DO™ firm, clients asked whether I do tech or marketing and in what specific niche. Today, “Technology & Marketing” are blended. Recently, my firm uncovered a major vendor cybersecurity risk that was known in the corporation but not to the board due toa conflicting chain of command. CIO, CTO, CTIO,CISO, CPO,CCO, CSO, CRO, CMO, CDO, CPO, CKO… 17 in the alphabet soup and still counting. The biggest issue in cybersecurity risk relates to humans. Employees cannot feel they are minimizing their own career risk if they report something that is not exactly in their nuance description. It is up to leadership to make sure that when it comes to cybersecurity, there is a collegial, no finger-pointing environment.
Marketing
When I launched my Electronic-BoardroomTMVi® Rating System at Oxford University UK, we gave Enron a zero rating because marketing crisis looms when you blatantly confuse Social Values with being the same thing as Ethical Values.
Recently, we have seen a shift in perspective about digital transformation. What was an increase in technology resources and costs is morphing into a change in marketing products and services. According to Global Sustainability Study, 61% of consumers today cite sustainability as an important criteria for buying a product and expect companies to document their sustainability practices. Leaders want to be sure that digitalization will make a purposeful and sustainable business impact.
Ventures
Boards have moved from a shareholder focus into a more diverse stakeholder environment. A growing stakeholder assessment issue is corporate built-infrastructure risk from floods and hurricanes. ESG portfolio managers have a fiduciary responsibility to ensure their investors are well-served and are playing active board roles.
Consultants are doing objective evaluations of fintech businesses to find the best innovative partner matches for large bank clients.
The metaverse integrates people, places, and things in the real and virtual worlds. According to Accenture, 68% of global banking executives believe programming the physical environment will emerge as a competitive differentiation in the banking industry. Opportunities for banks in the metaverse economy can provide growth via new bank services and products. Most promising is in the areas of:
- Digital Payments support secure functions and rails for metaverse products, services, and economies.
- Digital Assets via a bank’s role extension as custodians of customers’ assets to the metaverse. Banks can secure, insure, and lend against cryptocurrency, NFTs and virtual real estate.
- Digital twins via recreating a virtual twin for an asset or property like a home or bank branch. Viewing a VR recreation of a home for sale is more insightful than browsing 2D photos and video. A bank employee could use a digital twin for underwriting the loan.
- Bank and customer relationships can be transformed via metaverse community, collaborations, and personalized avatars in lieu of chats or video calls. There can be a two-way transparency creating trust and value.
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The future is in being a board member or leading a financially sound company seeking to profit from the disruption age. Ideally the modern board would thrive on evidential, logical reasoning directed at breakthrough, strategic objectives.
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BIO
June Klein’s 2022 awards include: Global 100 Financial Technologist -9 consecutive years, US Gamechanger, Top Venture Development Consultancy and Electronic-BoardroomTMVi® Solution Provider. She has served on public and private company boards. Previous executive roles: JPMorgan, Citigroup, Merrill, IBM, Federal Reserve. MBA – finance/marketing, Systems Research / Director Certificates, BS-math/education.
