Most organisations now have a compelling mission to enhance the positive impacts they have on both the environment and on society — this leads to a sustainable corporate strategy and the ability for investors to earn sustainable returns. Increasingly, boards must focus on communicating how they connect their business undertakings towards adding value within society and making a positive impact.
In an increasingly digital world, utilising predictive data insights is critical to making measured decisions to help organisations better position their brand and provide relevance back to their customer. To enable both the development and execution of a successful ESG policy, organisations must look to review their talent integration strategy to align with the overall purpose, direction and growth trajectory. A growing body of evidence points to the fact that organisations who fail to do so will impact financial returns and a significant opportunity to drive long-term value, in addition to risking the loss of investors who highly value sustainability.
A survey conducted by Deloitte and Forbes in 2017, indicated that sustainability has emerged as a top risk for senior leaders, and as such, has mapped itself on the forefront of talent integration strategies at a senior board level.
Talent integration to meet demand
Boards hold a fairly unique position in that they can work with the leadership team to connect the dots from sustainability to the corporate strategy. Ensuring investors, stakeholders, customers and, importantly, employees understand the significance of ESG, is key to managing the governance and reputational and financial risks associated with maintaining the strategy.
Assessing and hiring the appropriate board and leadership capability, to manage the pitfalls and barriers an ESG policy can create, will help drive opportunity and increase financial performance. Ensuring the correct talent is in place to remain at the forefront of the movement, should be a strong consideration of both leadership teams and boards. Increasingly, boards are seeking an analysis of their own competencies and experiences, to identify gaps in skills and diversity, and to meet their evolving needs.
With little appetite or ability to have passengers in the boardroom, a regular, holistic review of talent integration is becoming the smarter way to remain on the vanguard of change.
To discuss a sophisticated approach to managing your board level talent, contact Ciaran.