NACD Chairman’s Address
Following their inspiring message of peace and love, Dr. Reatha Clark King, chairman of the National Association of Directors, thanked the World Children’s Choir, for “reminding us who holds the future.” She remarked that the numbers at the NACD Board Leadership Conference continue to grow, “tracing diverse participation in every way.”
Dr. King focused her remarks on the idea of the future saying that we are “watching entirely new landscapes rushing to us at lightning speed.” She took William Gibson’s quote: “The future is already here, it is just not evenly distributed yet” and applied it to the audience by stating that “the future is here and having a direct affect on our companies and boardrooms every day.”
Dr. King observed: “New times call for updated challenges for board leadership” and recommended five areas of focus for the updated agenda:
- World class excellence in board governance functions: Emphasize the basics. If we don’t take care of the basic functions we won’t have time to take care of the next compelling need.
- Innovation: Enable value creation to benefit shareholders, investors, customers, communities, and other stakeholders.
- Harness the transformational effects of new discoveries: Mitigate the risks and potentially harmful effects from these discoveries.
- Understand and embrace a broad view of our companies’ contributions to society: We need to shift away from being “place-bound” thinkers to being “global” thinkers.
- Communicate and keep the public’s trust: The challenge is to communicate clearly with stakeholders.
Warren Bennis has said: “Lleadership is the capacity to translate vision into reality,” and Dr. King pointed out that a major challenge for directors is, “to lead when the rate of change is accelerating rapidly.” She continued by noting that the concept of change is not new; to keep businesses fresh there must always be change. Now, however, simply keeping up with the pace of change is not enough, it is a matter of wholesale reinvention. She mentioned a number of companies and ideas embracing change such as Uber, Lyft, Zipcar, Airbnb, Coursera, Bitcoin, and Square that exemplify the idea—“revolution is relevance.”
Dr King concluded by observing that we cannot wait for the future; the future is here now. There are four things that directors must do in order to ensure their organization’s relevance:
- Learn what is coming;
- Observe where others are headed;
- Envision possibilities; and
- Inspire progress.