Boards Still Don’t See the Value of Digital

Companies across the world are ramping up their digital initiatives, according to a new survey from McKinsey, with the C-suite increasingly leading the way. “Digitization has become a critical asset in many companies’ quest for growth,” write the report’s authors, noting the increased involvement by CEOs and other top executives.

There’s only one problem. Boards don’t seem interested.

When it comes to digital initiatives, the board of directors seems to be lagging. The vast majority of survey respondents indicated that their company’s board not only wasn’t directly engaged in digital projects, but was not even a supportive sponsor.

Perhaps most troubling, board support for digital projects has barely budged in the last three years, unlike support from senior executives which has grown meaningfully.

For firms looking to make the transition to digital but lacking supportive boards, it may be time to think about replacing a director or two. Research has shown that companies that replace three to four directors every three years outperform their peers. And even a couple digitally savvy board additions can go along way toward building support for new initiatives.

The flip side applies to board members: those that show no interest in digital are more likely to be pushed aside. Digital growth is appropriately a priority for a diverse swath of organizations, and boards need to get with the program.