Working with boards: Katie Simpson

In her role as Directors Australia’s General Manager – Advisory, Katie Simpson, advises a range of businesses to enhance board and organisational performance through strategy, coupled with best fit governance systems and practices.

Through conducting board performance evaluations across all market sectors and industries, Katie is aware of the trends currently playing out in boardrooms across the country. Here, Katie provides an insight into what she’s seeing across boards presently, as well as key themes boards should be focussing on heading into 2025.

What key trends are you seeing in your work with boards at present?

Regardless of the sector or industry the organisation operates in, we’re seeing a number of common key trends across the boards we work with.

The first trend is the increased focus by boards on the impacts of significant regulatory change, such as the introduction of mandatory climate related financial disclosure requirements. No matter the entity type or industry of operation, all boards need to understand the impact of these requirements to their organisation. This is not only in terms of the organisation’s own compliance with the requirements, but also any downstream impacts for the organisation as a key partner or service provider to other disclosing entities.

Next, boards are reconsidering their role as it relates to external stakeholder engagement. As societal expectations of boards increase, we are seeing more regular discussions regarding the collective role of the board and individual directors in engagement (including identifying opportunities for directors to work with management to amplify key messages in a co-ordinated way).

Lastly, we’re seeing board-led discussions regarding the use of AI. In particular, understanding the ways in which AI is already in use within the organisation and the opportunities and potential risks arising from the increased use of AI over time to inform board strategic planning.

What do you suggest boards should be focussing on?

Given the rapid rate of change emerging from internal and external factors, it is important for boards to regularly reflect on strategic risks and opportunities.

As a starting point, there are several reflective questions a board can consider:

  1. Do we have a clear statement of the board’s appetite in key strategic risk and opportunity areas (including any boundaries within which we will operate)?
  2. Is there alignment between the board and management regarding the board’s risk appetite in these key areas?
  3. Does our board meeting agenda provide us with an opportunity to discuss emerging risks or opportunities on the horizon?

Do you have any other advice for boards or their directors ?

It’s vital for boards and individual directors to take stock of where they have come from, where they are, and where they are going.

In our experience, high performing boards often lead with a continuous improvement mindset, and this includes regularly reflecting on their performance collectively.

As we come to the end of another busy year, boards can often overlook the opportunity to reflect on the contribution they have made to the organisation over the past 12 months. Accompanying these reflective conversations, it is also worthwhile discussing where the board intends to focus its collective time and energy during 2025.

Directors Australia works with the boards of publicly listed, government, private, APRA-regulated and not-for-profit organisations across all sectors and industries Australia-wide, providing board and governance advisory and specialist director recruitment. For further information, please contact us here 

Picture of Katie Simpson

Katie Simpson

General Manager, Advisory

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