Dear Board Member,
During the past 10 years, the business environment has changed tremendously.
The way we shop, eat and live has evolved too. Industries have transformed, markets have shifted, and technology has moved from a support role to centre stage. For example, when it comes to financial services, technology is the new source of distinctive advantage, a reason technology and related costs represent the highest share of operating expenses! The role of the board and its directors has changed and what it means to be an effective board member today is drastically different from what it meant 10 years ago.
I dive deeper into how boards must adapt across industries, based on real cases I’ve encountered. I’ll show you how board chairs, CEOs, and directors must sharpen their skills, rethink governance, and focus on upskilling to win in the age of digital transformation. I have had the privileged position to interact with many boards across many sectors. Grab a cup of coffee as we dig deep into these dynamics.
- The Financial institution’s board’s role has involved Strategic Cybersecurity
All banks have been in the race for digital transformation so much digital agenda is now a buzzword in all board rooms. One regional bank made significant strides ahead of the rest toward digital transformation. The bank launched a seamless mobile banking platform that attracted thousands of new users in a matter of months. However, while their CEO and board chair were focused on growth, they underestimated the cybersecurity risks that come with digital expansion. A few months after the platform went live, the bank suffered a cyber breach that exposed several records including customer data. It took only one compromised employee email for the hackers to infiltrate the system. As you can imagine, the bank’s reputation was damaged, customer trust eroded and money was lost.
Businesses, especially financial institutions are prime targets for cybercrime. The board chair must ensure cybersecurity is at the forefront of every meeting, and the CEO should actively engage with the CISO (Chief Information Security Officer) to create a culture of vigilance.
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In this case, the board chair and CEO were slow to see that growth and digital transformation must come with elevated cybersecurity governance. It’s not enough to focus on compliance as it tends to be more about ticking boxes; the board must also lead in understanding emerging risks.Develop a cybersecurity strategy and have a clear cybersecurity risk appetite and scorecard.
Monitor the cybersecurity scorecard continuously.
The payment was processed before anyone could realize the email was fraudulent.
Over Ugx. 500 Million was lost, and it was a sobering reminder that even senior leadership can fall prey to cyber schemes if cybersecurity training and incident response plans aren’t robust.
Businesses, especially financial institutions are prime targets for cybercrime. The board chair must ensure cybersecurity is at the forefront of every meeting, and the CEO should actively engage with the CISO (Chief Information Security Officer) to create a culture of vigilance.
Every board member must be upskilled in cyber literacy to understand the risks. Financial Institutions Boards, now include cybersecurity training as a permanent item on their agenda. It is something they have to dedicate at least 40 minutes to listening to independent experts retained by the board as technical advisors on the state of the bank’s cybersecurity posture. This arrangement helps validate the reports from the internal team, internal audit, risk management, cybersecurity team operating the security operations centre (SOC) and external audits.
The cybersecurity technical advice to the board gives a fourth level of defence and assurance to the board by a team of independent but highly skilled experts. At Summit Consulting Ltd’s iShield 360 cybersecurity as a service, we have been able to save companies a lot of money in terms of preventing breaches due to the timely identification of vulnerabilities as we conduct ongoing threat intelligence. Our team leader, Mr Strategy, can offer technical advice to the board on the specifics, real threats to the business and practical ways to address them. This makes the board truly in control of the cyber threat landscape. The time of having just a cybersecurity professional on the board is no longer adequate as such a professional does not offer real-time insights to the board based on findings on the ground.
The maths is simple: if you retain your directors at USD 2,000 quarterly, you may consider making it USD 5,000 or more depending on the size of your business and retain the Summit Consulting Ltd iShield Team, which will not only train your board ongoing but conduct ongoing independent cybersecurity assessments, make custom reports and engage with your board based on realities on the ground. Contact to engage further.
- Telecom Industry has entered an Era of Digital Connectivity and Data Protection
Case 1, SIM Swap Fraud, A Leadership Oversight
One of the big challenges for telecoms in Uganda is the problem of sim swap. For the telecom companies, mobile money platform is the new growth area. It offers lots of possibilities, one of which is client attraction and retention. The new big thing is payments, where customers pay directly to merchants using the mobile platforms. And it is not a secret that any telecom CEO has a sharp focus on the growth of the payments ecosystem. When a company gets a good board chair, they easily get in sync in terms of ambition with the CEO.
However, as the business pushed for expansion, the board overlooked customer identity verification, which led to a surge in SIM swap fraud cases. Fraudsters were easily able to take control of customer phone numbers and drain their mobile wallets. At the end of the day, tone at the top is key.
The board’s failure to address identity verification protocols led to massive customer losses, regulatory challenges, and eventual financial settlements.
The board, through the board chair, should have pushed for stronger verification mechanisms from the start, by complying with the law, where every registered user on the network must have their biometric identified (thumbprint scan, passport photo taken and matched to their national identity cards) and the CEO should have prioritized operational security alongside growth. Both parties needed to see that data protection was central to their business strategy, not just a compliance checkbox.
When leaders think about cybersecurity as an afterthought, they waste a lot of time in investigations, managing reports and dealing with crises. However, when you put cybersecurity at the centre of business operations, you protect the company from so many challenges.
Case 2, Failure to Innovate in the Face of 5G
Another telecom company saw its growth stagnate because the board and CEO were too conservative in their approach to adopting 5G technology. Competitors who invested early in 5G infrastructure began to take market share, offering faster services, better connectivity, and innovative business models. By the time the board realized their mistake, they were playing catch-up in an increasingly competitive market.
The board must lead with confidence. A digital strategy, and how it will power the company’s business model and strategy must be put in place and implemented.
Insight: The telecom industry is undergoing rapid digital transformation. Board chairs need to champion technology adoption as a strategic priority. The CEO must push for investments in innovation, while the entire board needs to be trained in the emerging technologies shaping the industry - be it 5G, IoT, or data analytics.
Do you need ongoing board briefings on emerging technologies? Contact Summit Consulting Ltd.
- Manufacturing has moved From Operational Excellence to Sustainability and Automation
Case 1: Ignoring Sustainability, Facing Backlash
A large manufacturing firm in Kenya focused on operational efficiency for decades, with the board chair and CEO focusing on production growth. However, they were blindsided by the increasing global emphasis on sustainability. Competitors began adopting green technologies and promoting ESG (Environmental, Social, and Governance) practices. The firm soon found itself the target of environmental protests, and major investors began pulling out, citing a lack of attention to ESG concerns. The board, which once saw sustainability as a “soft” issue, realized too late that it was critical for long-term survival.
How do you adapt modern manufacturing processes into your business? The board must lead these conversations with the ESG strategy, that is aligned with the corporate strategy.
Case 2: Lagging in Automation
In another case, a manufacturing company resisted investing in automation technology because the board felt it was too risky and costly. A competitor in the region embraced automation early and dramatically reduced production costs, increased efficiency, and scale faster.
The lagging company eventually had to lay off workers to invest in technology unfortunately, they invested in outdated equipment just to catch up. The endpoint was sub-par technology, sunk capital and loss of market share.
Insight: Manufacturing is evolving quickly with the rise of automation and sustainability mandates. The board chair must ensure ESG concerns are not just on the agenda but central to the company’s long-term strategy. The CEO should be driving technological innovation, particularly in automation, to stay competitive. Directors must be trained in both green business practices and digital transformation strategies.
- Retail and Consumer Goodsare Embracing E-Commerce and Consumer Trends
Case 1: Ignoring the Shift to E-Commerce
A prominent retail chain in East Africa remained focused on its physical stores, even as consumers shifted to online shopping. The CEO argued that physical retail was still profitable, and the board chair agreed, missing the opportunity to invest in a robust e-commerce platform as well as partnering with established digital stores to increase product visibility and tap into the growing digital consumers.
Meanwhile, competitors expanded online, leveraging digital marketing, delivery systems, and direct-to-consumer models. By the time the board acknowledged the shift, they had lost significant market share.
Case 2: Failing to Leverage Data Analytics
Another retailer with multiple outlets had the potential to use data analytics to improve sales and inventory management. However, the board didn’t prioritize data-driven decision-making. When a decision to invest in a robust ERP was tabled, the board thought it was another money-eating project, which rarely shows value. They did not appreciate the benefits of a good system to manage the business, as well as centralize data to set a foundation for analytics and business intelligence.
As a result, they had excess stock in some stores and frequent shortages in others.
Competitors who invested in predictive analytics used data to streamline operations, leading to increased customer satisfaction and sales.
Insight: Retail is now driven by consumer behavior and technology. The board chair must ensure the company’s digital strategies, such as e-commerce and data analytics, are central to decision-making. The CEO must push for an omnichannel approach that meets customers both in-store and online. Directors need to upskill in consumer data analysis and digital marketing trends.
- Technology and Data Privacy in Health Tech
Case 1: Missing the Telemedicine Boom
During the COVID-19 pandemic, a healthcare provider in Uganda failed to adapt to the growing demand for telemedicine. The board didn’t see the long-term potential of virtual healthcare, and the CEO was slow to invest in the necessary infrastructure.
Competitors who embraced telemedicine early on quickly captured a large market share, leaving the lagging provider to catch up in a post-pandemic world where virtual care was here to stay.
Case 2: Data Privacy Breach
A hospital faced a data breach when patient records were accessed by hackers through a weak link in the system’s data security. The CEO had prioritized expanding services without ensuring that the digital records were adequately protected, and the board had not paid enough attention to data privacy concerns. The breach led to legal challenges, patient distrust, and a hit to the hospital’s reputation.
Insight: Healthcare is evolving with digital health solutions and increasing demands for data protection. The board chair must push for a patient-centred, tech-driven strategy, while the CEO should ensure data privacy is a top priority. Directors must upskill in health tech and understand the regulatory landscape surrounding health data security.
The New Skillset of an Effective Director in the Modern Era
What we’ve learned from these cases is clear: being an effective board member today requires more than just experience in governance. Technology is at the core of modern business, and understanding how it impacts your industry is no longer optional - it’s essential.
Key Areas of Focus for Directors Today
Whether it’s cybersecurity, automation, e-commerce, or telemedicine, directors must be comfortable discussing and understanding technology. Tech literacy is a new normal to win as a director.
The ability to pivot quickly when markets change or when new risks arise is critical for survival. As a director, how adaptable are you? You must continuously up skills to stay relevant.
Directors need to understand how to leverage data to make informed, strategic decisions. Be data literate. Data-driven decision-making is the difference between winning companies and laggards. How do you use data to inform decisions?
As businesses go digital, boards must understand and prioritize cyber risk management to protect both the company and its stakeholders. All directors must become cybersecurity champions. Have regular briefings on the importance of cybersecurity. Cyber is a source of all risks the business faces. Embrace cyber hygiene for a high digital trust index.
Investors, consumers, and governments are demanding that companies operate ethically and sustainably. Directors must ensure these issues are embedded in the company’s DNA. ESG and sustainability as the new babies on the block. Have an ESG strategy and align it to the corporate strategy and your CSI agenda.
The Future-Ready Board Course
To embrace this changing landscape, upskilling is critical.
Summit Consulting understands the pressures modern boards face. We don’t just train; we live these experiences. Having worked with numerous boards across various industries, we understand the challenges that come with digital transformation, cybersecurity, and strategic planning.
Our Future-Ready Board Course is designed to equip board members with the skills and mindset needed to lead in this new era. Whether it’s understanding cybersecurity risks, guiding digital transformation, or addressing ESG concerns, this course will prepare you to tackle the challenges head-on.
If you’re ready to take your board leadership to the next level, join us in the Future-Ready Board Course, where we don’t just talk about the future, we prepare you to lead it.
Yours in Strategy, Mr. Strategy
