Succeeding in today’s marketplace requires more than just creating innovative products. It demands a commitment to sustainability that goes beyond mere tokenism. Over half of C‑level leaders believe that the demand for sustainable goods has the most significant impact on operations. This shift, emphasized by ESG (Environmental, Social, Governance) factors, particularly affects industries producing physical goods. However, some leaders still view sustainability initiatives as costs rather than long-term investments. This blog post explores five critical priorities for boards in 2024:
1. Overseeing Strategy for Long-Term Value Creation
Board members are now tasked with overseeing a strategy formulation process that not only addresses immediate challenges but also explores future possibilities. Planview comes into play by facilitating a comprehensive analysis of the company’s existing business models, incorporating internal and external data on megatrends, and aligning strategies with environmental, social, and governance (ESG) considerations. The platform enables boards to continuously review and adjust strategies, fostering a culture of innovation for long-term growth.
Key Actions:
- Balance oversight of short, medium, and long-term strategies.
- Integrate ESG opportunities and risks into strategic frameworks.
2. Promoting Enterprise Resiliency in the Face of Uncertainty
Amidst uncertainty, boards must guide management in adapting organizations to the post-pandemic world. Planview assists by facilitating scenario planning, stress testing, and contingency planning. The platform aids in assessing liquidity needs, strengthening supply chains, and ensuring flexibility in operating models. Boards can use Planview to proactively anticipate changes, address risks, and embrace agile approaches for navigating the evolving business landscape.
Key Actions:
- Set aside more time to challenge assumptions and review contingency plans.
- Analyze megatrends and regularly report on material business environment developments.
3. Focusing on Workforce Transformation and New Ways of Working
Recognizing human capital as a key driver of long-term value, boards need to oversee workforce transformation. Planview supports boards in this endeavor by providing insights into workforce metrics, facilitating collaboration with the Chief Human Resources Officer (CHRO), and aligning human capital strategies with the company’s purpose, culture, and values. Additionally, the platform assists in evaluating investments in reskilling and recruiting to address current and future skills gaps.
Key Actions:
- Make the CHRO a central board resource.
- Regularly review a comprehensive set of workforce and culture-related metrics.
4. Guiding an ESG Strategy for Stakeholder Engagement and Value
Sustainable investing is on the rise, and boards must capitalize on this trend. Planview supports boards by facilitating a materiality assessment to identify relevant ESG issues and guiding the development of an ESG strategy aligned with corporate goals. The platform ensures transparent processes for governing ESG, integrating it into broader business strategy and enterprise risk management.
Key Actions:
- Capitalize on ESG investing and stewardship trends.
- Guide ESG strategy development based on a materiality assessment.
5. Challenging Board Composition and Effectiveness
Boards need to continually enhance their effectiveness and adapt to changing circumstances. Planview assists by providing agile and effective communication and security practices, allowing boards to reassess structures and drive accountability. Boards can use Planview to ensure they receive timely and quality information, evaluate expertise against evolving challenges, and promote ongoing board evaluation.
Key Actions:
- Confirm the board receives timely information from various sources.
- Assess expertise and diversity against evolving challenges.
In conclusion, 2024 presents unprecedented challenges that demand strategic, resilient, and inclusive leadership. Planview serves as a valuable ally for boards in navigating these priorities, offering a comprehensive platform to enhance decision-making, collaboration, and adaptability in an ever-evolving business landscape. As organizations embrace these priorities with the support of Planview, they are better equipped to create sustainable value and thrive in the years to come.