As directors you don’t need to know much about the technical side of your business; you can leave all of that to the IT department. Right? Well no, actually very wrong. Yes there are some areas which you can reasonably be expected to delegate. For example, if the server ‘falls over’ or some new code is required to enhance your customer offering then your technical team are most likely far better qualified to come up with a solution.
However, incidences such as these don’t absolve directors from having oversight on IT matters. In an interconnected world technology is the conduit by which the organisation corresponds with its customers and suppliers. Your website, sales platform, accounting systems and so on are your window on the world. The harsh truth is that if you get this aspect of your business wrong, it won’t be long before you may not have a business to oversee.
It is a little concerning therefore that a recent survey by the Quoted Companies Alliance (QCA) revealed that 60% of respondents felt that their boards lacked cyber and IT expertise. When you consider that ESG concerns came second on the list at 34% with all other aspects of board control such as risk management, finance and so on coming in at under ten percent, that lack of IT knowledge stands out.
Good service comes through knowledge
Why should you be concerned? Well for a start, how can you be sure that risk is being appropriately managed if you don’t know what you are overseeing? Equally importantly, how do you know that you are providing the best service possible for your customers when you neither have adequate knowledge of your current systems and processes, nor understand what options are available in the marketplace? In effect, your cloudy vision means you just can’t truly see or appreciate customer needs.
So what is the solution? One option may be to look again at board recruitment. Promoting diversity of thought and skills within the board could help to remedy that lack of expertise. And when boardroom discussions turn to matters of technology, don’t simply leave it all to a single individual. Be prepared to question and debate, to call on outside help if required so that the entire board is comfortable with what is being proposed.
Finally, take time to look at your offering from the point of view of a customer. Try and find something on the website, place an order, or raise a query. If you aren’t happy with what you find, how do you think your customers will feel?
