Guest Post by Marvin Cheung, Co-Managing Director, Quantum Oaks Advisory at Unbuilt Labs
When we talk about organizational stewardship, people tend to think it operates on a 30-year horizon. Nowadays, boards face increasing pressures to focus on the near-term. Famously, Netflix launched its on-demand streaming service in 2007, and Blockbuster filed for Chapter 11 bankruptcy protection in 2010. Quantum and AI will speed up the pace of change further.
- How might boards strategize meaningfully and plan for the longer term?
- What might the boards of the future look like?
- What systems might boards put in place to advance organizational stewardship?
HOW MIGHT BOARDS STRATEGIZE MEANINGFULLY AND PLAN FOR THE LONGER TERM?
A lot of consulting firms are quick to proclaim the next industrial revolution or “Industry 4.0”. There is merit to the idea, but it is often when we look back, sometimes decades later, that we are able to point to the defining features of an era. Certainly, it was not part of our collective imagination a few years ago that AI would be so pervasive. It would be more helpful to focus on a few key themes across the last three centuries, such as urbanization, globalization, digitization, and automation. Boards will do well to contextualize developments within a broader history and think expansively beyond “digital transformation”.
While the precise developments in quantum and AI are fundamentally unknowable, we can explore the various realms of possibilities. In my January briefing, I spoke about quantum preparedness for non-technical board members, then discussed the intersections between quantum and AI in my February briefing. A foundational knowledge of emerging technologies will always be beneficial. I offered a guiding principle: anything that can be automated will be automated. To be an asset in strategic discussions, board members will have to reflect on their own skill sets and industry trajectories.
WHAT MIGHT THE BOARDS OF THE FUTURE LOOK LIKE?
Board members’ duties of care, loyalty, and obedience are unlikely to change, but board dynamics may be very different in the near future. The volume and velocity of information are rapidly increasing. As AI usage rises, boards may wish to have designated fact checkers within their legal teams for both internal and external documents, such as shareholder proposals. Clear guidelines on the use of AI, especially with reference to confidential information, will be crucial. Certainly, it would not be ideal to have management create long AI-generated reports, which are then read only by the board members’ AI chatbots.
The boards of the future will likely emphasize creative thinking, when the obvious ideas are available to anyone with a chatbot. A forward-looking board will allocate more time and resources towards developing visions for impact regularly. As AI-powered solutions flood the market, companies will face design challenges. They will have to navigate a deluge of options and bring together a cohesive offering to customers. Boards too may wish to embrace the creative process, from sketching ideas to discussing alternative solution conjectures. Quantum is expected to present a leap in computing capabilities. Boards will have to be comfortable with taking creative leaps and thinking about broader systems to develop compelling visions.
WHAT SYSTEMS MIGHT BOARDS PUT IN PLACE TO ADVANCE ORGANIZATIONAL STEWARDSHIP?
A board that prioritizes organizational stewardship will have to be forward looking. Given major disruptions, the long-term viability of a company cannot be taken for granted. Boards looking to advance organizational stewardship may wish to work intergenerationally — bringing together emerging perspectives with institutional knowledge. This might involve a board apprentice program, cultivating innovation pipelines, developing partnerships with academic programs, or other exciting initiatives. Boards have the opportunity to engage intergenerational talents in the age of quantum and AI, and it will be a strategic imperative as well given the rapid pace of change.
Disclosure: This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice. Information is obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. In no event shall Quantum Oaks Advisory at Unbuilt Labs or any of its directors, officers, employees or agents be liable for any use of, for any decision made or action taken in reliance upon, or for any inaccuracies or errors in or omissions from, the information in this content.
Marvin Cheung, Co-Managing Director, Quantum Oaks Advisory at Unbuilt Labs
Marvin Cheung is a Co-Managing Director at Quantum Oaks at Unbuilt Labs, where he helps boards to demystify quantum, strategize, and explore creatively. He co-leads Quantum Oaks’ Interactive Quantum Board Briefing Program and Heir Readiness Program. An experienced board member himself, he has given talks at the UN, MIT, Board Impact Forum, and ChairX. He also mentors at Yale University’s Tsai Center for Innovative Thinking. Marvin@UnbuiltLabs.com
Image: Logan Voss on Unsplash
