Institute of Corporate Directors Malaysia (ICDM) president and CEO Michele Kythe Lim
PETALING JAYA: The Institute of Corporate Directors Malaysia (ICDM) highlights the importance for boards to sharpen their ability to assess and steer their organisations’ business models, governance, talent, dynamics, and culture as they position their companies for the future.
In a recently concluded survey of 335 respondents comprising boards and senior management from across the region, ICDM reiterated the urgency for boards to evaluate their effectiveness and shift their current strategic priorities to ensure they address the key threats that they expect to be more prominent over the next two years.
The key threats include having the right talent and leadership, diplomacy in managing macro and geopolitical uncertainty, sustainable and effective operational strategy and board-management relations and dynamics.
ICDM president and chief executive officer Michele Kythe Lim said: “Governance is coming into focus on a more profound level in the wake of heightened stakeholder expectations, as evidenced by the many changes taking place on boards around us recently.
“This regional survey is part of our hope to collectively transform leadership and drive businesses to greater heights by encouraging them to launch into action and openly address the critical areas in board and corporate governance that will nurture deeper cohesion in organisations,” she added.
ICDM’s 2024 ASEAN Board Trends Survey identified five critical areas in board governance that require immediate intervention to reinforce board effectiveness and ensure companies are equipped for the challenges of the future.
These include staying informed about current and future business trends while adapting to new threats, risks and opportunities.
It also pointed out that while boards place greater importance on business-model agility, diversification and transformation, managements believe human-capital strategy and development should be a priority.
“Boards and managements must conduct more meaningful discussions, realign and agree on priorities as well as expectations of both parties to enhance the working relationship for increased effectiveness,” ICDM added.
