Unlocking Innovation: The Power of Shadow Boards
In today's dynamic business landscape, where innovation is the key to survival, organisations are seeking new ways to harness creativity, engage their workforce, and stay ahead of the curve. One fascinating approach gaining traction is the use of shadow boards – a diverse group of non-executive employees working closely with senior executives to bring fresh perspectives and drive organisational development.
Diversifying with Shadow Boards
The corporate world is evolving at an unprecedented pace, and traditional structures often struggle to keep up. Enter shadow boards, a beacon of innovation that has proven transformative for some of the world's leading companies. Take the case of Gucci, which, by embracing a shadow board primarily composed of Millennials, experienced a sales boost through improved digital strategies. On the flip side, Prada's resistance to the digital revolution led to declining sales.
This trend isn't exclusive to the fashion industry. AccorHotels, facing competition from Airbnb, entrusted a shadow board with brand creation, resulting in the birth of Jo&Joe. Similarly, Stora Enso utilised its shadow board to revamp work assignment processes, leading to significant breakthroughs. GroupM India empowered a youth committee to drive digital and cultural transformation, fostering partnerships and cross-agency collaboration.
The common thread? Shadow boards offer visibility and fresh perspectives. This is not just beneficial to the organisation itself, but it often propels members into accelerated career progression.
New Types of Shadow Boards
Shadow Boards have been primarily focused on engaging young people. However, there is another model out there which can ensure companies are embracing diverse perspectives - “deliberative mini-publics”. Universities, non-profit organisations, and policymakers have used them to bring together a representative cross-section of a given population to deliberate together about a specific subject matter. The US group Democracy Without Elections (DWE) has taken this one step further and replaced the board with a lottery process.
The core is to use stratified-random sampling (sortition) to choose participants. This can be carried out from within an established pool such as employees or membership. Additionally, it can be extended out to a wider ‘customer’ group so there is a wider pool of contributions.
The use of random selection promotes inclusiveness, assembling groups that broadly represent the population of interest and bring diverse lived experiences, perspectives, surpassing the limitations of most executive boards.
As well as the selection, it is important to ensure that the board operates with informed deliberative decision making. This about employing techniques such as clarifying questions, consensus building, and rounds where each director provides input. Additionally, the board should leverage insights from experts and stakeholders, and establish ground rules for the operation of meetings. The goal is to create an environment where everyone's voice is heard, fostering a collaborative decision-making process.
Changing the Governance Landscape
Implementing shadow boards requires a strategic approach. Encourage diverse participation beyond the "high-potential" group, secure CEO sponsorship, and be ready to continually evaluate and adjust the program as needed. Changing governance structures may seem daunting, however, creating parallel infrastructure allows a company to experiment on what works for them. Undoubtedly, the benefits far outweigh the challenges.
In conclusion, the integration of shadow boards unlocks a powerful avenue for organisational development and innovation. By embracing diverse perspectives, fostering inclusivity, and continuously adapting, businesses can navigate the complexities of the modern market and stay ahead in the race for success. The shadows cast by these boards are not a retreat but a leap forward into a brighter, more innovative future.