Lack of tech leaders at board level exposes organisations to risk

The last few years saw a huge shift to digital platforms and services as organisations scrambled to establish new ways of living and working post Covid. It was the CIO often leading these changes, portrayed as a new breed of strategic adviser that could help rapidly transform organisations. Which makes the fact that there is still very little tech representation at board level today even more surprising.

There are several reasons why tech still doesn’t have a seat at the table in many organisations. Firstly, a lot of business leaders aren’t even aware they have a gap in the board room. As far as they’re concerned, they have exactly the right mix of skills and individuals. It’s only when a technology issue crystallizes or they miss an opportunity in the market that suddenly they realise that maybe they aren’t as equipped to handle problems or identify opportunities as they thought.

Secondly, there is huge demand for leaders that have good technology skills and can speak to business opportunities, benefits and risk. Individuals that can bridge the gap between the business and technology, and ensure their priorities are strategically aligned with those of the wider business. Put simply, they are fluent in two different languages: technology and business. Unsurprisingly, there is a real shortage of such individuals in the market with this combination of skills.

Uninformed decisions = huge risk

The upshot to this lack of representation is that board members are not making informed decisions on technology - which comes at a huge risk.

As an example, a CIO can pitch a multimillion-pound investment in technology transformation. What if no one on the board has the capability or experience to challenge them? What if it isn’t the right solution for that business? It’s also difficult to challenge the costs and benefits of the solution – is it a fair cost for what they’re about to undertake, or a good return on investment? It’s a huge gamble if a board is completely unequipped to have the initial conversation.

And that leads to two problems. Firstly, that organisation isn’t managing the risk around technology correctly. They are not aware of the risks and therefore, they’re not putting the right safeguards in place. A good example of this where organisations don’t understand or acknowledge cyber risk. They have to suffer a cyberattack before they realise they don’t have the plans and procedures in place to deal with it.

But more importantly, not understanding how to leverage technology in the current landscape puts you at risk of falling behind the competition. If you can’t see how technology can enhance or transform your organisation, you could find yourself, quite literally, having a Kodak moment where everyone else has successfully transformed their business models and you’re left behind, wondering what went wrong.

A digitally savvy C-Suite

The fact is, successful digital transformation doesn’t just need buy-in from the board, it should be championed by the C-suite. Without that support, any transformation project is likely to fail.

So what’s the answer? One way of approach the problem is for the rest of the boardroom to meet technology halfway. They can educate themselves more on technology, and the impact of digital on the business. Saying, ‘I don’t really understand technology’ isn’t really going to cut when every business today relies on technology. They must be comfortable having those conversations – at least at a high level.

For example, there’s still a lot of hype around cloud. So why not put everything in the cloud? That seems like a good idea, from everything we’ve been sold, right? Unless those giving the green light to those projects have a least some awareness of the risks associated with moving to the cloud, it could prove a costly experience all round.

We also see organisations making a big investment in the latest technology – but they’re not using it properly. They’re duplicating tools they have already, or in the case of cyber, they have no one monitoring the system or consuming the data it produces to tell them what’s going on. So it becomes about more than the technology; it’s about building an ecosystem around the tech to ensure it is consumed in a meaningful way. Because, contrary to popular belief, technology alone isn’t a silver bullet for all ills. Technology should be an enabler for business change, but not a driver.

For business leaders to really spearhead change, they need to learn from those that have gone before them. So before embarking on a huge technology transformation programme, they should speak to other organisations that have already undertaken their own projects, which can help bring the whole venture to life. The importance of learning from others’ mistakes can’t be overstated.

A return to pre-Covid days?

So let’s look again at why technology hasn’t more of a presence on the board, considering the huge acceleration in digital transformation programmes during the pandemic. Covid-19 taught us some big lessons on the importance of getting digital transformation right. Everyone was suddenly working from home and we understood the importance of technology and in enabling organisations to be flexible. And the CIO was the most valuable person in business.

Yet, those lessons feel almost forgotten now. It seems like we’re slipping back to how we were, pre-Covid. Companies are demanding people return to the office. And organisations are no longer accelerating digital transformation at the same pace – in fact they seem to be taking their foot off the pedal.

If technology isn’t being represented at a board level, that organisation is opening itself up to tremendous risk. It’s also a missed opportunity for change. So, it is critical that the C-Suite become more digitally-savvy, so they can drive the agenda in the digital age. Because if you’re not part of it, there’s a good chance you’ll be left behind.

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