Charles Dickens wrote in his classic novel about the French Revolution: “It was the best of times. It was the worst of times.” (1975). The same quote applies to the first half of the 21stSt century In this blog, we focus on how Boards of Directors can meet today’s Best of Times/Worst of Times moments.
Our “Best of Times, Worst of Times” period
On the one hand, we are in the process of dramatic technological change Artificial intelligencerobotics and emerging quantum computing systems. The United States, on the other hand, is experiencing a shrinking middle class, a decline in national cohesion, and an increase in institutional relations. distrust. Earlier Psychology today blog we discussed these issues in detail (Stybel Peabody, 2024).
In A New Age of Mind, Larry Weber (2024) acknowledges the best of times and the worst of times, but emphasizes how corporate leaders can capitalize on the positives. Mr. Weber is a national thought leader in corporate communications and founder of Racepoint Global.
From Agricultural Tractors to Agtech
The book includes Weber’s extensive interview with Deere’s CEO. With a history of two hundred years, this company is known as a farm tractor company. The CEO and board transformed Deere into an Agtech company with a mission to empower farmers to do more with less.
The key lesson for CEOs and CEOs is that to justify this new corporate mission, the CEO went back to Deere’s founding history. Using its founding history as a jumping-off point, he noted that Deere has always been about changing farming. Deere introduced the first steel plow in 1837. He replaced horse-drawn tractors with engines in 1918.
By focusing on founding history, companies can help reduce internal resistance to change by associating disruptive change with respect for the company’s past.
Today, Deere uses artificial intelligence and computer vision with robotics and machine learning. Advanced sensors and robots place each seed with precision beyond human capabilities. At the same time, it reduces carbon emissions. All of these changes have benefited Deere’s bottom line and public image as a trusted source for farmers.
Suggestions for managing directors and CEOs
Every company is a technology company. The author tells the story of working with General Motors’ Onstar presentation. He told GM officials, “You’re not a car company anymore. You’re a technology company.” This concept also applies to professional service companies such as healthcare. educationand the law.
Keeping up with technology is not a project. Projects can be completed within certain deadlines. Technology is now an integral part of corporate culture. Weber says Kodak missed the digital photography era and Intel missed the cell phone wave because they didn’t keep up with the changes in technology. Technological developments in the first quarter of 21St The century moves faster than the changes in the last quarter of the 20th centuryTh century
Embrace uncertainty in structured methods. We recommend structuring one hour per year of Board and C-Suite time to focus on scenario planning around peripheral threats/opportunities. Management should be tasked with preparing ideas for Board discussion.
Vigilance is paramount. Government and industry regulations are critical to minimizing the harm that new technologies can cause. The board must be perceived by stakeholders as a vocal advocate of reasonable regulations. Being perceived as an institutional barrier erodes perceived institutional trust among stakeholders.
Create platforms for communication. Establish regular communication with competitors through industry standards committees. Take it leadership roles on industry-wide standard-setting committees. Ask marketing setting up meetings with companies a year after they decide not to buy your products/services. Use these meetings to understand your company’s competitive strengths/weaknesses.
The importance of strategic perspective
In the first quarter of 21St century, Boards of Directors have entered another “Best of Times/Worst of Times” era. Managing the technological and societal changes that will occur requires simultaneously returning to the company’s origins and setting the Board’s future agenda to ensure awareness of emerging threats/opportunities.
It would be ideal for management to take the initiative and for the Board to be courteous. But we don’t live in an ideal world. Typically, the corporate reward system focuses on quarterly and annual goals. The result is sensitivity bias for tactical issues at the expense of a strategic perspective.
