GovTalk with Sabine Dembkowski on the complexities of board management in 2024 and the role of technology
In the pilot edition of Cygnetise’s new interview series GovTalks, we talked to Dr. Sabine Dembkowski about her journey of founding Better Boards, navigating the complexities of modern board governance and the role of technology in the field.
Welcome to GovTalks - Cygnetise’s new interview series dedicated to exploring the multifaceted world of Governance, Risk & Compliance (GRC), and the transformative role of Regulatory Technology (RegTech). GovTalks brings together thought leaders, industry experts, and trailblazers to shed light on these complexities. In this pilot edition of the series, we sat down with Dr. Sabine Dembkowski, Founder and Managing Partner of Better Boards, for a thought-provoking discussion on board evaluations, the complexities of modern board governance and the role of technology in the field.
Sabine Dembkowski is a distinguished figure in the realm of board governance, celebrated for her pivotal role in enhancing board evaluation and effectiveness across various industries and organisations ranging from FTSE and DAX-listed companies to global corporations and leading private equity and professional service firms. She founded Better Boards in 2014 on the conviction that there must be a more effective way to conduct board evaluations than the status quo that often leaves boards feeling their evaluations add no value and merely echo what it's already known. The company has since grown into one of the leaders in the field, supporting some of the largest organisations in the UK and Europe such as Vontobel, IG, ZOPA, and Mercedes-Benz. Sabine is also the host of “The Better Boards Podcast Series” which is recognised as one of the Top 10 governance podcasts worldwide.
Read Sabine’s complete story below.
Can you give us a background about yourself and the story of Better Boards?
I'm a Managing Partner at Better Boards, where we offer solutions for conducting effective board evaluations through our data-driven and research-based technology platform. The platform enables organisations to undertake both independent and fully facilitated board evaluations, addressing the dissatisfaction many board members feel towards traditional evaluation processes. My professional journey began in Germany, where I started my career, later earning a doctorate in the UK and working at large consultancies like A.T. Kearney and Monitor Company which is now part of Deloitte. As a strategy consultant, you always put a lot of effort into your presentations, but then you realise that you don't have the backing from someone senior within the organisation, at the board or executive level, and all your wonderful presentation efforts could go nowhere. So, I learned very early on how crucial it is for any organisational initiative to be truly supported by the board. Due to my consulting role, I had the opportunity to get into executive coaching which quickly opened my door to organisations’ boardrooms and sparked my fascination with board structures and dynamics.
After recognising widespread dissatisfaction with traditional board evaluations during my consulting work, I then embarked on a research journey to seek a more effective approach. This resulted in the development and publication of our now globally acclaimed "seven hallmarks of effective boards" framework, which laid the foundations for the Better Board platform.
How have you seen global and local governance standards evolve with technological advancements over the past two decades?
Over the past two decades, corporate governance has significantly grown in importance, influenced by technological advancements and the increased visibility of board failures worldwide. This greater focus on governance, however, brings the challenge of finding the right balance between actually meeting the stringent and ever-growing regulatory demands and providing the strategic, value-adding activities boards are striving for. So, many directors are now leveraging technology to meet these demands without compromising their effectiveness. And we’re seeing a trend toward more technologically integrated governance processes within organisations to maintain this delicate balance and enhance security and efficiency in board operations.
In addition to finding the right balance between meeting regulatory requirements and providing value, what other challenges do boards face in 2024?
Regulation is just one side of the challenge. On the other, boards face a broad range of complex issues having an immediate impact on their organisations’ daily operations and survival, from ESG and cybersecurity to digitalisation and geopolitical shifts. The sheer volume of these challenges is overwhelming and only those who are effective will be able to tackle them, further underlining the importance of continuous board development.
Based on your experience, what differentiates higher-performing boards from those that struggle? And what are some good practices in the field?
High-performing boards tend to stand out with their open-mindedness towards receiving critical feedback, adopting new technologies, and adapting their behaviours to meet the changing needs of their organisations. These boards efficiently navigate compliance, often handling such matters outside of strategic meeting times and focusing on having more substantial discussions within the boardroom instead. In contrast, struggling boards tend to resist change and new technologies.
Some of the good practices I’ve seen over the past years include the strategic use of technology to manage board materials, for example. Improving documentation quality with clear executive summaries, concise information, and effective visual aids like dashboards, enables directors to have a comprehensive yet streamlined view of key performance indicators for better decision-making.
Speaking of technology, what is your opinion and observation about the adoption of emerging technologies like AI and blockchain in board management?
I see a mixed picture. There is significant discussion and enthusiasm outside boardrooms, in the media, and in the public discourse. However, within boardrooms, the conversation doesn't reflect the same level of engagement or urgency. Boards tend to be conservative, prioritising safety and compliance, which can slow the integration of new technologies into their processes. Despite the potential benefits, the pace of adoption of new technologies like AI and blockchain in board management practices remains more cautious than someone from the outside might expect.
What about the ESG focus which has also been dominating the media space over the past years?
ESG, while still a vital issue, has seen a shift in focus internally within boards due to the rise of more immediate economic challenges and organisational needs as mentioned earlier. Especially in the UK, the spotlight this year is more on compensation issues and the war for talent, which are pressing concerns overshadowing ESG priorities in the region.
Lastly, what is one piece of advice you would offer to organisations navigating today’s board management complexities?
The key is to systematically develop your board, ensuring you have the right underlying data to guide this process, which hinges on having robust feedback processes, and access to training and quality information.
About Cygnetise:
Cygnetise uses the latest blockchain technology to help organisations reduce the risk of fraud, facilitate business continuity and contribute to ESG by digitising the process of authorised signatory management and bank mandates. Our application enables users to update their signer data in real time and has a variety of sharing mechanisms so that all relevant counterparts can have constant access to the most up-to-date information without you having to recompile and redistribute.
To learn more about Cygnetise and request a free demo, click here or email our team at info@cygnetise.com