In his classic novel about the French Revolution, Charles Dickens wrote, “It was the best of times. It was the worst of times.” (1975). That same quote also applies to the first half of the 21st Century. In this blog, we will focus on how Boards of Directors can meet today’s “Best of Times/Worst of Times” moment.
Our “Best of Times Worst of Times” Era
One one-hand, we are in the process of dramatic technological change through Artificial Intelligence, robotics, and emerging quantum computing systems. On the other hand, the United States is experiencing the decline of the middle class, a decline of national cohesion, and an increase in institutional mistrust. In an earlier Psychology Today blog, we discussed these issues in more detail (Stybel Peabody, 2024).
In A New Age of Reason, Larry Weber (2024) acknowledges both the best and worst of times but places emphasis on how corporate leaders can harness the positives. Mr. Weber is a national thought leader in corporate communications and founder of Racepoint Global.
From Farm Tractors to Agtech
The book contains Weber’s extensive interview with the CEO of Deere. This two-hundred-year-old company is known as a farm tractor company. The CEO and the Board have transformed Deere into an Agtech company whose mission is to empower farmers to do more with less.
A key lesson for Board Directors and CEOs is that to justify this new corporate mission, the CEO reached back into Deere’s founding story. Using the founding story as a jumping off point, he argued that Deere has always been in the business of transforming farming. Deere introduced the first steel plow in 1837. It replaced horse drawn tractors with engines in 1918.
By focusing on the founding story, companies help reduce internal resistance to change by linking disruptive change with honoring the company’s past.
Today, Deere leverages AI and computer vision with robotics and machine learning. Advanced sensors and robots place each seed with precision beyond human capacity. At the same time, it is reducing carbon emission. All these changes have benefited Deere’s net income and public reputation as a trustworthy resource to farmers.
Suggestions for Board Directors and CEOs
Every Company is a Technology Company. The author recounts working with General Motors’ introduction of Onstar. He told officials at GM, “You are no longer a car company. You are a technology company.” This concept also applies to professional service firms such as health care, education, and law.
Keeping Up with Technology is Not a Project. Projects can be completed by certain dates. Technology is now a continuing component of corporate culture. Weber notes that Kodak missed the digital photography era and Intel missed the mobile phone wave because they were not keeping up with technology changes. Technological changes in the first quarter of the 21st Century will move faster than changes in the last quarter of the 20th Century.
Embrace Uncertainty in Structured Ways. We recommend that one hour a year of Board and C-Suite time be structured to focus on scenario planning around peripheral threats/opportunities. Management should be tasked with preparing ideas for Board discussion.
Vigilance is Paramount. Governmental and industry regulations are critical to minimize the damage new technologies can cause. The Board should be perceived by stakeholders as a vocal supporter of reasonable regulations. Being perceived as an institutional obstacle will only erode perceived institutional trust among stakeholders.
Create platforms for dialogue. Structure regular dialogue with adversaries through industry-standard setting committees. Take leadership roles in industry-wide standard setting committees. Ask marketing to arrange meetings with companies a year after they decided not to purchase your products/services. Use these meetings to gain more understanding of your company competitive strengths/weaknesses.
The Importance of Strategic Perspective
In the first quarter of the 21st century, Boards of Directors are thrust into another “Best of Times/Worst of Times” era. Managing the technological and social changes that will occur requires simultaneously reaching back to the company’s origin while structuring future Board agendas to ensure awareness of emerging threats/opportunities.
It would be ideal for management to take the initiative and for the Board to be receptive. But we do not live in an ideal world. The typical corporate reward system tends to focus on quarterly and yearly goals. The consequence is a perceptual bias for tactical issues at the expense of strategic perspective.