Overcoming the Hesitation to Adopt Digitalization

Change is hard, especially when people are already so used to how they’ve been doing things. Most companies find it challenging to adopt digitalization because of the risks that go along with it. Nobody knows how the newly adopted system, tool, or procedure can affect how the board works. As such, directors hesitate to proceed with transitioning to a digital boardroom.

However, amid these particularly volatile times, accepting change in the boardroom has become synonymous with upholding good governance. Digital transformation runs especially true with how the board communicates.

Since the onset of the global pandemic, board portals became one of the best options to continue conducting board meetings. However, some boards find this option daunting because of the challenges of using the digital platform – increased cyber risk, users’ technology gap, and even budget constraints.

The question now stands – how can boards overcome the initial reluctance to adopt digitalization?

Shift Mindset to Success

“Essentially, there has been that challenge on top of the change, which is a mindset shift that needs to happen pretty quickly. But what we have seen, the adoption of digitalization in this part of the world has been very quick.”

– Waweru Mathenge, Chairman of the Institute of Corporate Secretaries in Kenya

Because of the pandemic, directors and organizations have to think of ways to ensure business continuity and be open to adopting or overhauling their organization based on current circumstance. One of the evident business trends involved more technology into their daily operations – production automation, customer interaction, and even boardroom communication.

True enough, there was an initial hesitance or reluctance to adopt digitalization, especially with using board portals as their main board meeting tool.

Since most boards are conservative, many directors were hesitant to bring boardroom matters to the digital space. Boards raised concerns about confidentiality, given the sensitive nature of board meetings. Leaders also feared that virtual board meetings might not be as effective and efficient as in-person meetings. On top of that, some companies tried to deal with the situation. However, they were unprepared for their budget allocation for acquiring new software and other technology upgrades.

Seeing the growth potential convinced many directors to adopt digitalization. When directors focus on what matters, they see that digital transformation is necessary and advantageous. Committing to what would benefit the board and organization, even when it requires a significant change, is the right mindset to take on when boards go digital.

Increase Board Involvement

“It’s really about the board members having the correct mindset and the ability to accept the change. And once they accept the change and are able to embrace it, then you know they can fully utilize the benefits that digitization can bring in terms of efficiency, and all the benefits that come along with having a digital meeting.”

– Raymond Lam, CEO of CrewCorp Services

Boards that have gone digital now ask themselves how they did things before digitalizing their boardroom. But, without a doubt, transitioning to a digital boardroom unlocked many benefits for boards.

When a company adapts quickly, it can start to learn how to cope with the new normal. It opens more efficient ways of working compared to their processes before the pandemic. In the end, the willingness to learn new technology shows the board’s commitment to positive change.

As different platforms address the need for better board communication, training the directors to be fully equipped on using these digital tools is essential. Proper training in tools maximizes the board’s ability to foster better engagement, make faster decisions, and determine effective strategies.

How quickly directors learn how to use board portals varies on a case-to-case basis. As such, providing personalized training and a highly intuitive interface benefits boards of all kinds. Upon becoming more familiar with the tool they use, directors can easily overcome the challenges of virtual meetings. Being open to change and willing to learn is vital to ensuring successful digital transformation.

Understand the Root Cause of Fear

“The dynamics of digital motivation is that people may be worried or nervous to begin mainly because of confidentiality.”

– Nitin Potdar, M&A Partner at J. Sagar Associates

One of the most critical concerns of boards as they go digital is confidentiality. This concern comes from their need to keep critical information private and secure. Information that accidentally comes out may harm the board and even the business as a whole in the long run.

In physical meetings, the board primarily discusses points laid out on the agenda. Beyond the plan, they also talk about various issues, concerns, and other serious matters. These topics are not a regular part of the meeting proceedings and are not recorded in the minutes of the board meetings.

In digital meetings, a board management system records every word said and every action done by directors. It can be a problematic issue for some of the board members. With that said, how can this fear be overcome?

With virtual board meetings, the board can decide to pause the video recording when they want to discuss their personal opinions. They can also have the final video recording edited for the official video for documentation. Furthermore, the board can conduct an informal pre-meeting as a venue for informal discussions related to the agenda of the formal board meeting.

There is always a way to address any issues that cause fear in using technology despite its advantages, such as when it comes to board portals.

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Though shifting to a digital boardroom may be complex, it is a sorely needed transition. Boards need to learn to embrace digitalization to stay on track, especially during a global crisis.

When finally convincing the boardroom to consider using technology, Convene’s board portal can help you take the first step towards adopting digitalization.