The practice of Strategic Insights for boards, shared at Swedish Academy of board Directors event

1. Omvärldsinsikt för styrelser
October 21, 2019
Styrelseakademien
Stockholm
StyrelseakademienOkt 2019
Moderator Liselotte Engstam
Professionell Styrelseledamot,
Forskare i styrelseprojekten OSIRIS, SISUBoards,
4Boards.ai, Nordic Chairmen Practices

2. Diskuteras
djupgående/ofta
Önskarspenderamertid
på
50%
100%
40
%
20
%
Lagreglering Extern Rapportering
RiskhanteringStyrning &
efterlevnad
Hållbarhet
Kultur,
värderingar
Succession, talanger
Teknologipåverka
n
Strategi
Kommersiella
utmaningar,
disruption
Värdeskapande till
ägare
Ref: Ridgeway Partners 2018/ Forskningsprojektet SISU Boards/Digoshen
20192
“A diverse Board and a strong
corporate culture. We are
well positioned to achieve our
strategic goal of driving
profitable growth and
building shareholder value."
StyrelseakademienOkt 2019
Snabbt föränderlig omvärld ökar trycket på styrelser

3. OMVÄRLDSBEVAKNING
– för ökad och snabbare marknadsinsikt
OMSTÄLLNING
– innovationsengagemang för förnyad
strategiformulering
INRIKTNINGSANPASSNING
– beslut för resursallokering, förändring och agilitet
Styrelsepraxis som bidrar till företagsförnyelse & innovation
Ref: Forskningsprojektet OSIRIS /Digoshen 2019
StyrelseakademienOkt 2019

4. Professor Robin Teigland
Entreprenörskap Chalmers, Strategi SSE
4boards.ai
StyrelseakademienOkt 2019

5. Strategic Insights for Boards
Professor Robin Teigland
robin.teigland@chalmers.se
@robinteigland
StyrelseakademienOkt 2019

6. People
• “Net generation”
• 24x7 “mobile” workforce
• Gig economy
• Online learning
• Sharing not owning
• Sustainability
Technology
• Broadband/wifi
• Cloud, fog
• Internet of Things
• AI/ML/DL/NN
• Autonomous vehicles
• Smart robotics
• VR/AR/Holography
• 3D/4D printing/ALM
• Blockchains
• Nanotechnology
• Quantum computing
Open Source
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P lending
• Cryptocurrencies, tokens
• Blockchains, smart contracts
• Mobile money and payments
• M2M/R2R payments

7. Digital is the main reason
just over half the Fortune 500 companies
have disappeared since the year 2000.
-Pierre Nanterme, CEO Accenture, 2016
Yet..Digital disruption
has only just begun.

8. Companies progressing
but leadership falling behind
4Boards.aiResearch; Understanding Digital Maturity – MIT/CapGemini 2018

9. Boards tend to overestimate their
”Digital Savviness”
62%
of boards report
they are digitally
savvy
Source: MIT CISR 2014 Board Survey, 81 companies.
24%
of boards are
digitally savvy based
on public data
Source: MIT CISR 2018 Board Study, 1122 companies, based on
coding of public proxy data.
4Boards.ai

10. Digitally Savvy Boards -> Higher performance
• Companies with “Digitally
Savvy” boards
• 38% higher revenue growth
• 34% higher ROA
• 34% higher market growth
• 3 digitally savvy directors
required to impact performance
Source: MIT Research 2018
4Boards.ai

11. 4Boards.aiResearch; AI in Europe & Sweden by EY and Microsoft 2018 (n=267)
Boards and Top Management not aligned on AI

12. While 63% of CEOs
believe AI will have a
larger impact on the
world than the
internet,….
https://www.pwc.com/gx/en/ceo-survey/2019/report/pwc-22nd-annual-global-ceo-survey.pdf
…only 3% have
AI as fundamental to
the organization’s
operations.

13. FUTURE OF
VALUE
CREATION
Political Economic
Sociological
TechnologicalEnvironmental
Legal
Increasing uncertainty across PESTEL

14. All our knowledge is about the past,
but all our strategic decisions are about the future
Conway 2003
What we don’t know
we don’t know
about the future
What we know
What we know
we don’t know

15. So, how can we
prepare for the future?

16. “We always overestimate the change
that will occur in the next two years and
underestimate the change that will
occur in the next ten.”
- Bill Gates, The Road Ahead, 1996

17. BA
Two individuals (organizations)
with the same number of contacts…

18. …but with very different
access to resources, ideas, and signals
BA

19. Collective PESTEL
insights
Board competence and
composition
Continuous individual
learning
- Focused experts across PESTEL
- Dinners/meetings with experts & young talents
- Extended ”Safaris” & site visits
- Collaboration w/ startups, academia, public sector
- Networks, eg LinkedIn, Whatsapp, Meetups
- Experienced nomination committee
- Broad view of diversity
- Experienced in digital ”innovation” – esp globally
- Learning budget for each board member
- Online education/MOOCs
- Digital tools, eg tweetdeck
Board activities for increased insights
Ref: Forskningsprojektet OSIRIS/Digoshen 2019

20. Some digital tools

21. Looking into the future?
• Forecast
– How we think the future will be
• Vision
– How we want the future to be
• Scenarios
– What the future can be
– “Alternative memories” from the future
?
?
?
?

22. Interdependent, yet quite different
elements of strategy
• Scenario Thinking
–Explore options. Practice divergent thinking
with incomplete/ambiguous information.
• Strategy Development
–Assess options. Examine choices and make
decisions and/or set a direction.
• Strategic Planning
–Implement actions. Make it happen.
Swinburne
Distant future
High uncertainty
Here and now
Low uncertainty

23. Two modes of thinking
https://cucumber.io/blog/2014/10/21/the-two-modes-of-thought-you-need-for-bdd

24. Four scenarios for 2035
Global
Power
Struggle
Scenario 4
Business More or Less as Usual
New
World
Order
High Technology Convergence
Low Technology Convergence
Scenario 2
Circular “ReGen” Villages
Scenario 3
Global Village Networks
Scenario 1
MegaCities in the ”Wild West”

25. Global
Power
Struggle
High Technology Convergence
MegaCities in the ”Wild West”
National platforms drive out foreign platforms and
products. Global MegaCities thirst for resources and
products, yet a high level of piracy and terrorism
makes trade and transportation very dangerous.
SDGs are seen as impossible to achieve.
Low Technology Convergence
New
World
Order
Four scenarios for 2035

26. Global
Power
Struggle
High Technology Convergence
Circular “ReGen” Villages
Self-sufficient, off-grid communities are enabled by
part-time “producers” in Gig Economy. High
protectionism with new energy resources, circular
technologies, and sharing mentality drastically
reduce demand for retail and trade so some SDGs are
reached.
Low Technology Convergence
New
World
Order
Four scenarios for 2035

27. Global
Power
Struggle
High Technology Convergence
Low Technology Convergence
New
World
Order
Global Village Networks
Nomadic communities across countries, in oceans,
and in space directly source products and services
from small, sustainable producers worldwide. New
energy resources and recycling and material
technologies make SDGs history.
Four scenarios for 2035

28. Global
Power
Struggle
High Technology Convergence
Business More or Less as Usual
Monopoly-platforms from China and USA dominate
trade by sourcing from global mega producers and
delivering directly on-demand to a vastly urbanized
world. Global initiatives to meet SDGs are pursued
yet progress is very slow.
Low Technology Convergence
New
World
Order
Four scenarios for 2035

29. Boundary spanning enables scenario thinking
1. Build relationships across diverse networks, avoid echo chambers
2. Practice scenario thinking and look for signals from the periphery
3. Ask “What if?”, challenge basic assumptions, and experiment
4. Ensure access to resources, not ownership, through your networks
Boundary
spanner

30. Avoid creating insular networks
http://www.enronexplorer.com/focus/19185#

31. Professor Robin Teigland
Chalmers University of Technology
www.robinteigland.com | www.slideshare.net/eteigland | robin.teigland@chalmers.se | @RobinTeigland

32. Johanna
Fagrell-
Köhler
StyrelseakademienOkt 2019
Björn
Weigel
VD Creuna,
Styrelseledamo
t
Klövern, Jula,
G5 Ent mfl
Klara
Adolphson
Robin
Teigland
Styrelseordf.
CyberAggregate
mfl
Investerare,
Författare
Professor
Impakt-
entreprenör
4Boards.ai
Head of
Delivery
PWC
Experience
Center

33. Mest disruptiva ämnet på er styrelseagenda enligt
deltagarna
StyrelseakademienOkt 2019
Ref: Deltagare Omvärldsinsikt
Styrelseakademien Stockholm 21 oktober 2019

34. http://mgmt.imit.se/nummer/nr-2-juni-2019/#innovation-and-corporate-renewal-also-disrupt-boards
Tack för uppmärksamheten!
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StyrelseakademienOkt 2019