Business Transformation Requires Transformational Leaders
Leadership and teaming skills are front and center in times of rapid change. Meet today’s constant disruption head on with expert guidance in leadership, business strategy, transformation, and innovation. Whether the disruption du jour is a digitally-driven upending of traditional business models, the pandemic-driven end to business as usual, or the change-driven challenge of staffing that meets your transformation plans—you’ll be prepared with cutting edge techniques and expert knowledge that enable strategic leadership.
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Trevor Hunter examines how leader character strengthens board decision-making. As ESG considerations and the UN’s Principles for Responsible Investment (PRI) reshape board responsibilities, directors are now accountable to a broader set of stakeholders beyond shareholders. Hunter draws on the Leader Character Framework developed by Mary Crossan, Gerard Seijts, and Jeffrey Gandz of Canada’s Ivey Business School, highlighting its role in navigating complex — and sometimes conflicting — obligations.
Shuhui Wang and Hirindu Kawshala analyze more than 14,000 earnings call transcripts to examine how CEO overconfidence impacts firm complexity. They find that overconfident CEOs tend to reduce complexity, often at the cost of long-term alignment, as illustrated by John Flannery’s short tenure at General Electric. Their study underscores the importance of aligning CEO traits with a firm’s strategic and operational needs, particularly during leadership transitions. Boards must discern whether simplification efforts reflect sound strategy or risky overconfidence.
Siah Hwee Ang calls for a shift in how executives engage with boards — not just as monitors or advisers but as long-term strategic assets. He advocates for structures that tap into directors’ expertise through agenda setting, follow-ups, and subcommittees. Boards’ hard skills can be institutionalized via staggered succession, while soft skills can be preserved by documenting decision-making processes. Regular engagement is key, with boards contributing to short-, medium-, and long-term strategic discussions.
Filip Lestan and Ruy de Quadros Carvalho analyze 249 Brazilian firms to assess how board structure influences innovation governance. They found that forming innovation-related committees is far more impactful than vision statements or rhetoric, enabling boards to ask better questions and oversee complex initiatives. Larger boards are more likely to form such committees, while CEO duality and director busyness significantly reduce the likelihood. The article concludes with four actionable steps to strengthen innovation governance through board design.
David F. Larcker, Amit Seru, Brian Tayan, and Laurie Yoler explore how AI could reshape boardrooms by enhancing the volume, quality, and timeliness of information available to directors. AI can reduce information asymmetry, support predictive analysis, and enable real-time scenario planning. These tools help boards become more proactive and better prepared for meetings. However, the authors caution that greater access to information may blur the line between governance and operations, requiring executives to manage directors’ deeper involvement carefully.
This issue of Amplify invites a reexamination of what makes boards truly effective. It features a collection of articles that explore how boards can evolve beyond conventional roles to become active stewards of long-term value — drawing on leader character, data and analytics, behavioral insight, structural design, and strategic engagement.
Alessia Falsarone examines the evolving role of lead independent directors (LIDs), offering a five-part framework to assess when and how to appoint them. Although LIDs can strengthen board independence and communication, their function varies by context. In firms where the CEO also chairs the board, LIDs often serve as a bridge to management and stakeholders. In other cases, they foster open dialogue on issues like ESG and AI ethics. Falsarone illustrates this with examples, including Coca-Cola’s LID leading efforts in transparency and sustainability amid activist pressure.
As organizations pursue purpose-driven goals, true leadership requires more than bold statements — it demands rigorous measurement of real-world impact. This means shifting from tracking inputs to evaluating tangible outcomes, acknowledging unintended consequences, and staying adaptable in the face of uncertainty. As this Advisor explores, effective leaders build systems that capture both direct and ripple effects of their actions, enabling smarter decisions and more resilient strategies.