Prospects of governance 4.0: Moving beyond directors’ networks to the networked board

Abstract

The problem that this paper addresses is growing evidence that conventional board models (especially the unitary board version) are approaching their use-by-date and may no longer be fit-for-purpose. This paper follows the published research by Ernst & Young (EY, 2021) with Dean Blomson as the lead researcher on board operating models of the future. One model was the ‘networked board operating model’; but its operation was not outlined in any detail. This conceptual paper examines the relevance, contribution, role and operation of a networked board. Methodologically, it draws on existing governance and networks’ literature and extrapolates that abductively to consider the applicability of a networked board/governance model. This paper outlines the design logic, construct, features and possible operation of such a model; and the key conditions for its success. The conclusion is that a networked board (governance) model for an enterprise (as opposed to multiple enterprises): 1) has interesting, relevant features worthy of consideration and adoption; 2) is not simply an abstract, theoretical construct but could be pragmatically applied and ‘operated’; and, therefore, 3) should have a place as an ‘alternative’ governance model (recognising that what is unconventional today may be mainstream tomorrow). The relevance of this paper is that it provides a foundation for further contemplation and critique of the model — as a viable alternative governance construct that is likely to be far more responsive to the vagaries of a VUCA (volatile, uncertain, complex and ambiguous) world, where ‘always on’ vigilance and heightened stakeholder engagement will be governance imperatives, for growing numbers of enterprises.