Decoding Tech Trends and Leadership in the Digital Age

Tech-Driven Agility Transforming the Board and C-suite

An in-depth discussion with JoAnn McNutt, Boyden Leadership Consulting and Co-Founder, Board First Consulting, LLC

“In today’s digital world, the critical decision for boards is whether to go for offense or defense.”

JoAnn McNutt, PhD
Senior Advisor, Leadership Consulting, U.S.

• An offense or defense governing approach should be one of the factors that informs the make-up of the board. For example, an offense governing strategy involves ethics as part of the board’s conversation, particularly data privacy and guardrails for the consequences of innovation (for example, Alexa listening to all conversations). The defense governing strategy is more about ensuring systems and policies are in place to reduce risk, protect people, consumers, and data.
• Increased competition in the tech industry requires a commitment to innovation, taking a more progressive stance, and recruiting key strategic thinkers with ecommerce and deep-tech experience to the board. To keep pace with the growing demand for talent and breakneck pace of change, an offensive approach to governance is becoming more common and necessary.
• Conversely, when pursuing a defensive governance approach, the board’s decision-making will often center around determining which competencies must be recruited to the board (e.g., AI, cybersecurity, blockchain, etc.), and which ones can be brought in through management-level hires, third-party educators, consultants, ad hoc committees, and/or advisory board members. 
• It is also important to note that dysfunctional board dynamics often arise from a board low in collective EQ. No matter how much technical expertise the board has, if it does not have the emotional intelligence to work as a team, maintain a healthy culture, understand the role of the board, and make decisions through consensus, great technical expertise may come at a cost.
• Ultimately, the board’s success is all about the customer. In the tech industry particularly, there are no boundaries between countries or people; it’s a boundless and limitless world, so a tech board needs a global perspective with different world views. Ideally, the diversity of the board’s composition will reflect the customers the company serves.
• The more diverse the board is (cognitively, linguistically, culturally, etc.), the more important it is for the board chair to actively manage the board and facilitate effective discussions. This is very often an acquired skill and the value of training the board chair to be an effective facilitator should not be discounted.
• Another cause of board dysfunction can result from the board not agreeing on how to function as a cohesive team. The board is charged with making the most difficult and financially risky decisions, the ripple effective of which can impact millions of people, and the board’s work must be achieved through only a handful of meetings a year, some of which are virtual. Suffice it to say, it is a big ask.
• What about committees and effectiveness? There is a Goldilocks factor: too many committees can be counter effective, while too few can undermine effective governance. The organization's life cycle stage influences its strategy, which in turn dictates the governance structure and the number of committees needed. Boards should not hesitate to use ad-hoc committees or task forces to support management on specific, challenging topics and issues.
• Digital governance. Boards are grappling with the pros and cons of utilizing tech for their governance practice (e.g., AI to track meeting minutes, online board portals, etc.). The board must gain agreement on its philosophy for tech use: what are the values around managing privacy, raw data and sharing confidential information? For example, one important board principle might cover breach of confidentiality; there are myriad examples of board members accidently disclosing confidential information and bringing down the entire board.
• The organisation is a living and breathing organism that needs to evolve, grow and respond nimbly to external factors. The board needs to evolve in concert with the organisation in response to the market, as influenced by tech, climate and geopolitical change.
• Board composition should be assessed as frequently as strategy is refreshed. The tech industry is changing rapidly, so strategy and board composition should be assessed with a similar cadence. However, a balance must be sough - too much board turnover may result in disruption and lack of continuity..
• Take AI. Some boards bring in a consultant for a special session, others want a board member with AI experience. It’s important first to think through what the board is trying to achieve.  The first instinct tends to be bringing on a board member with AI experience; but the board should think through if the expertise might be better at the executive level. The board’s job is to provide guidance and principles for the business to implement in its approach to AI.
• Learn the ‘power of the pause’. It’s important not to be swayed by external noise and the trend of looking for a CEO or board member with AI skills. First stop and ask, “What does AI mean to the business, our strategy, and the board?  To what extent do we react? What is our goal?
• To summarise, as technology rapidly evolves and impacts industries, boards must be intentional about their governance principles, including their strategic stance, composition, ethics, and both external and internal perspectives. They need to closely evaluate the CEO and their team. The critical, brave question remains: Do we have the right people leading and governing the organization?

• • •

Technological and digital literacy is now a must-have amongst the leadership team. Here are the top trends across the C-suite driving digital transformation:

• CTOs are now expected to spearhead organization-wide initiatives, encompassing tech fluency, ESG objectives, and more. They are pivotal in leading digital transformations and fostering a culture that supports tech-driven strategies.
• The rise of artificial intelligence, particularly generative AI, has prompted many organizations to create the role of Chief AI Officers (CAIOs), with many organizations combining it with other leadership positions like chief data officer or chief digital officer. This change reinforces the importance of continuous learning, adaptability, and the ability to lead cultural and technological change.
• Just as financial literacy is essential for executives, technological and digital literacy is now crucial. Executives need to understand and leverage technology to drive business success. Here's how key C-suite roles are evolving to include digital competencies:
  • CEOs must align the company's strategy with digital goals and cultivate a forward-looking, innovative culture.
  • CFOs should harness technology for financial process improvement and strategic planning.
  • CHROs are enhancing HR tech systems and to manage tech talent recruitment and retention. 
  • To remain influential and drive positive outcomes, CHROs must increasingly develop digital skills, recognize the organizational implications of AI, understand data governance, and design for change
  • CMOs need to embrace data-driven marketing and ensure multi-channel consistency.
• Continuous learning and adaptability are essential for board members and senior leaders to stay relevant and manage digital transformation effectively. Reverse mentoring and training are key strategies in this endeavour.
• To attract and retain digital talent, organizations need to create a meaningful value proposition, foster cross-functional collaboration, invest in digital experiences, and ensure the C-suite is actively involved in digital strategy and talent management.
• Read more on the topic:
  Deloitte: Understanding the Five Competencies of Transformational Technology Leadership
  EY: How the C-suite can Address the Talent Crisis in Digital Innovation
  Harvard Business Review: Is Your C-suite Equipped to Lead a Digital Transformation
  HR Executive: 4 Digital HR Skills That Will Boost Your Influence
  CIO: Essential Skills and Traits of Chief AI Officers

The Interim Management Opportunity for Today’s Challenges

An in-depth discussion with Lisa Farmer, Boyden Global Co-Leader, Interim Management and Daniel Harrison, Principal, Technology Practice, U.K.

“C-level leadership for the short-term, to help attract a new leader, or buy time to find a purple squirrel – this is the essence of the opportunity with interim management. Tech organisations are leveraging this talent management solution more than ever.”

Lisa Farmer
Managing Partner, U.K.
Global Co-Leader, Interim Management

• Interim leaders provide exceptional, senior-level capabilities otherwise out of reach of budgets under pressure. Transformation through new technologies is the top driver of leveraging interim management solutions, with interim leaders delivering instant impact in an environment highly sensitive to speed, change, results and scale.
• A common theme in the tech sector is businesses needing to improve or gear up. With the private equity market moving less fast, if at all, firms need to make improvements in the current portfolio. This is where interims are more active; external consultants have given way to internal interims, delivering projects and moving the dial.
• The use of interim leaders has become much more strategic in the last few years, especially in the tech function. Tech businesses are particularly savvy, buying in interim skill sets for instant business impact. And they are not simply looking for experts in ERP implementation or other traditional areas, they are embracing interim leaders spanning the c-suite beyond technology.
• The proliferation of tech products has driven the specialist role of long-term or interim CPO, taking product out of the CTO’s remit. This relatively recent role reports direct to the CEO and is responsible for a number of different areas – delivery, business analysis, product management, architecture and more – making recruitment potentially challenging. An interim CPO is flexible, can hit the ground running and has instant impact. This role needs someone with gravitas, passionate about product and able to get the board to buy into the vision.
• Long-term tech leaders are more difficult to appoint today due to equity, other incentives and longer notice periods. Organisations don’t always have the time required for executive search, exacerbated by little or no succession planning. Interim and executive search are therefore increasingly used together to deliver smarter outcomes.
• The expertise of interims in scaling a business is well recognised by tech companies who know interims deliver a faster rate of change. Speed and pace in tech businesses is where change is needed; interim leaders are fast operators and can plug in people or move the dial on a programme, making the business more attractive for a permanent leader.
• Interim leaders are also valued for their ability to coach, mentor and upskill colleagues as part of their brief. This is a key driver personally for the interim leader; not motivated by company politics, they relish the ability to make an impact, deliver results for the business and pass their wisdom on, leaving the business in a better state.
• Who drives the quest for an interim leader? It tends to be the CEO, chair, founder or private equity firm, with the HR director usually involved. Internationally, it is often the CFO. In SMEs, it tends to be the CEO, the chair or HR team. The Chair role is increasingly influential. Whoever is in the driving seat, tech companies are savvy people and people savvy.

Leadership Consulting Insights into Navigating Technology Transformation

An in-depth discussion with João Guedes Vaz, Boyden Global Leader, Leadership Consulting

"Board effectiveness, re-conceptualizing IT and HR functions, and prioritizing talent over technology are essential components in navigating tech transformation."

João Guedes Vaz
Managing Partner, Portugal
Global Leader, Leadership Consulting

• Constant change, competition for talent, and the need to refresh skills and leadership competencies have created a perfect storm for leadership consulting. According to Boyden’s latest global executive study, ‘leadership development for high potentials’ remains the top area for talent investment, with 70 percent of business leaders very likely or likely to make this investment through 2024.
• There is a growing demand for leaders who can effectively manage tech-savvy teams and drive digital initiatives. Leadership consultants are actively developing and nurturing this talent pool through bespoke leadership and team development programs.
• Developing an aggressive tech talent strategy and pipeline is crucial. It's not just about filling positions but ensuring strategic growth. Hiring for enduring human skills and training for technical skills is increasingly important, as soft skills like leadership, communication, problem-solving, and collaboration are key success factors for tech teams.
• "What I am willing to do is take a chance on technological skill, not take a chance on personal skills," says Bechtel's Patrick Noon. "I know from experience I can fix one a lot easier than I can fix the other."
• Technical skills become outdated every 2.5 years on average. While some tech specialists may continue to focus on digital depth, hiring should also consider individuals' ability to lead and be empathetic, as these traits are less likely to degrade over time.
• Tech-driven change necessitates organizational adaptation. Data on people, motivation, performance characteristics, leadership, and organizational transformation have provided significant insights. Experienced leadership consultants use this knowledge to manage tech-driven and event-driven change, helping leaders communicate the benefits of tech adoption, mitigate resistance, and facilitate smooth implementation.
• IT and HR departments are evolving to meet business and talent needs. IT departments are balancing in-house capabilities with external expertise, while HR departments are undergoing transformation driven by people-focused technologies, often in collaboration with leadership and talent specialists.
• Leadership and succession planning are essential for future-proofing the organization but often challenging to align with business objectives. These programs should include digital leadership assessments to evaluate competencies as organizations transition through new technologies like Web3.
• Organizational leadership is assessed through leadership specialists who combine proprietary frameworks with market insights. The Boyden Leadership Framework focuses on leading the organization, leading people, and leading oneself, evaluating a leader’s capacity to execute digital strategies and ethical policies aligned with organizational goals.
• The board's role in ensuring effective leadership and governance is increasingly important. Board effectiveness services help boards establish ethical frameworks and policies and understand board composition, including access to internal or external AI expertise.
• Technology offers new capabilities and forces new choices in how enterprises engage and deploy their people. Peter Cappelli of The Wharton School emphasizes that technology should not be seen as the primary driver but as a catalyst for new possibilities.
• In short, the keys to the future are:
• • Talent over technology
  • Pursue an aggressive tech talent strategy and pipeline
  • Hire for enduring human skills
  • Assess people with a long-term perspective: their ability to lead, adapt and demonstrate empathy. These qualities are less likely to depreciate over time.
  • Don’t outsource to cut costs. View talent as fuel for achieving strategic outcomes.