As technology continues to be an important driver in business transformation across organizations, there’s been a steady increase in boards looking to appoint board members with technology experience over the past few years. According to Deloitte’s 2023 Global Technology Leadership Study, 67% of organizations surveyed say at least one of their board members has experience in a technology leadership role,1 compared to 56% in 2020.2
Despite technology and telecommunications being the most common industry background for new directors,3 there is often still a gap in how well the board and technology leaders (chief information officers, chief technology officers, chief information security officers, etc.) are connecting on technology topics. Only 36% of board members surveyed report having full confidence in their technology leaders, and more than four in 10 C-suite executives say their board’s oversight of technology matters is not sufficient in either scope or depth.4 Part of this disconnect could stem from boards governing multiyear transformations and capital spend, but still feeling like technology spend and costs are a black box since technology leaders struggle with measuring and articulating the business impact of technology investments.5
As technology continues to be an important driver in business transformation across organizations, there’s been a steady increase in boards looking to appoint board members with technology experience over the past few years. According to Deloitte’s 2023 Global Technology Leadership Study, 67% of organizations surveyed say at least one of their board members has experience in a technology leadership role,1 compared to 56% in 2020.2
Despite technology and telecommunications being the most common industry background for new directors,3 there is often still a gap in how well the board and technology leaders (chief information officers, chief technology officers, chief information security officers, etc.) are connecting on technology topics. Only 36% of board members surveyed report having full confidence in their technology leaders, and more than four in 10 C-suite executives say their board’s oversight of technology matters is not sufficient in either scope or depth.4 Part of this disconnect could stem from boards governing multiyear transformations and capital spend, but still feeling like technology spend and costs are a black box since technology leaders struggle with measuring and articulating the business impact of technology investments.5
“Boardroom conversations today have more focus on cybersecurity, which is good, but there are still a lot of challenges discussing the broader technology road map,” says Laura Miller, CIO of Macy’s and a board member at Ahold Delhaize and NCR Voyix. “For example, if you’re putting a new ERP (enterprise resource planning) in, people understand that. But if you have a 30-year-old mainframe and you need US$50 million to get rid of it, it’s a harder conversation to get people to understand the ‘why’ behind that change and the value that will come from it.”8
Translate technical jargon to business need. Jargon-free communications that include examples and anecdotes to distill complex issues may help board members better grasp a topic at hand. Technology leaders should ensure they are simplifying technological concepts and presenting to board members—some of whom may not have a technical background—in a way they can understand and make informed decisions around. These communications should be rooted in the business need and how technology supports and drives business strategy.
This clear, concise communication doesn’t just apply to formal presentations. It can also apply to pre-read materials, which a formal presentation then builds upon. Pre-reads can be an effective way to address the tactical, operational context so the actual board interaction can be focused on having a dialogue on strategic issues and future directions. These materials should provide the information needed to support decision-making and include relevant reference materials (analyst reports, studies, surveys, etc.) without overwhelming the audience. Assume board members have read the pre-reads and start the discussion where the pre-read ends.
Consider a consistent structure for reporting and benchmarking. Another consideration for demonstrating transparency around technology spend and how it links to strategic goals is to create a consistent set of technology metrics aligned to business outcomes. According to some of the board members interviewed, technology leader presentations can sometimes feel complex with a hard-to-follow trajectory and no through line that connects one presentation to another over time. To encourage more clarity and connective tissue, boards and technology leaders should align on key business, performance, and operational metrics and put them on a one-pager so progress can be consistently tracked over time.
A board member of a private equity company, for example, mentioned that a technology scorecard that was presented to the board for each of their holding companies had the same eight metrics. This practice created consistency and allowed for easier evaluation and comparison among the holding companies. A similar approach can be taken for business units in a commercial enterprise.
Read the full article by Lara Abrash, Lou DiLorenzo Jr, Anjali Shaikh, Carey Oven / Deloitte
