COVID-19: Three ways boards can help create systemic change

Boards must focus on long-term value, culture and talent to drive organizational transformation in a post-COVID-19 world.

There is no question that the COVID-19 crisis has fundamentally changed the way businesses operate. Expect the unexpected is the new mantra, yet some changes appear inevitable: a greater number of employees will work from home more frequently, supply chains will be reorganized to maximize agility and flexibility, and technology will feature more prominently.

Customer behavior will also shift. The experience of COVID-19 will reset the relationship between customers and business, with many more customers demanding that the businesses they purchase from play a role in addressing key societal challenges. The rise of social capital – the networks around companies and their shared norms, values and understanding – which was evident before COVID-19 shook the world, is now firmly on the agenda.

There are numerous ways boards can assist their organizations address these areas, but three that provide the foundation for the support structure boards must deliver are:

• Defining – and living – a strong purpose that drives long-term value
• Instilling a culture of continuous change
• Developing a future-fit workforce

Perhaps this could be attributed to the role of the board versus management, but given their fundamental importance in driving organizational transformation, especially in a post-COVID-19 world, boards should work proactively with business leadership to address them. In doing so, boards should adopt a two-speed approach, focusing on building a resilient enterprise while also laying the foundations for future success.