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With boards of directors being encouraged to better embrace innovation in their businesses, a new report has offered insight on how this can be achieved.
Innovation in the boardroom: Rising to the challenge? is a new report from the Australian Institute of Company Directors (AICD) and the University of Sydney Business School.
Acknowledging that directors play a “crucial role” in driving innovation within their organisations, the report goes one step further, advising directors how they can best implement a culture of innovation from the top down.
According to AICD managing director and CEO Mark Rigotti, innovation must be embedded “into the DNA of all Australian organisations”.
He believes “a shift in director mindset is needed to meet the increasing challenges posed by issues such as climate change, cyber security risk and economic uncertainties”.
Dr Massimo Garbuio, a co-author on the report and an associate professor with the University of Sydney Business School, has stressed the importance of future proofing — and how innovative practices can assist.
The report has outlined a number of ways boards can prioritise innovation, shared below.
- Challenge
Challenge the management team and question the status quo.
- Make innovation business as usual
According to the report, directors should ensure innovation is part of business as usual, at both board and organisational levels.
- Have an innovative mindset
Directors must bring an innovation mindset and diversify appointment practices to bring real-world innovation experience into the boardroom, according to the report.
- Track trends
Directors are advised to track emerging trends, which will enable them to better anticipate impacts and plan for future scenarios.
- Look outside
The report urged boards to gain external perspectives including from experts, advisory boards and technology committees. This will ensure boards are properly equipped to “stay ahead of the innovation curve”.
REB previously reported on the need for boards to embrace innovation “beyond what is immediately necessary”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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