Brain power

How boards of directors can potentially improve decision-making through knowledge strategies supported by ICT

Corporate boards face increasing scrutiny, but studies show that board directors still lack the information and knowledge they need to be able to fulfill their evolving responsibilities.

A new study1 helps to address this situation by looking at how boards of directors can potentially improve decision-making through knowledge strategies supported by information and communication technologies (ICT).

The researchers first reviewed the literature on corporate board information and decision-making limitations, and then identified potential solutions by relating these limitations to the literature on ICT, following a design science research methodology.

The literature review identified a series of knowledge-related problems that could impair the quality of board decisions, including information asymmetry, information overload, and groupthink. Information asymmetry is where there is a difference between the information available to management and what is presented to the board, with independent directors being heavily dependent on managers for their information and knowledge.

Potential solutions to these problems are shown in Figure 1. The researchers advise that these solutions represent a first step in developing a comprehensive knowledge framework for boards, and future research can build on these findings.

Examples of knowledge solutions and supporting tools.
Figure 1. Examples of knowledge solutions and supporting tools (source: EJKM).

Article source: Improving Board Knowledge with Information and Communication Technologies is licensed under CC BY-ND 4.0.

Header image source: November Executive Board Meeting by AFGE is licenced by CC BY 2.0.

Reference:

  1. Roy M.C., Roy M.J., and Bouchard, L. (2017). Improving Board Knowledge with Information and Communication Technologies. The Electronic Journal of Knowledge Management, 15(4): 215-224. Available online at www.ejkm.com

Also published on Medium.

Bruce Boyes

Bruce Boyes (www.bruceboyes.info) is editor, lead writer, and a director of the award-winning RealKM Magazine (www.realkm.com) and currently also teaches in the University of NSW (UNSW) Foundation Studies program in China. He has expertise and experience in a wide range of areas including knowledge management (KM), environmental management, program and project management, writing and editing, stakeholder engagement, communications, and research. Bruce holds a Master of Environmental Management with Distinction and a Certificate of Technology (Electronics). With a demonstrated ability to identify and implement innovative solutions to social and ecological complexity, Bruce's many career highlights include establishing RealKM Magazine as an award-winning resource for knowledge managers, using agile and knowledge management approaches to oversee the implementation of an award-winning $77.4 million river recovery program in western Sydney on time and under budget, leading a knowledge strategy process for Australia's 56 natural resource management (NRM) regional organisations, pioneering collaborative learning and governance approaches to support communities to sustainably manage landscapes and catchments, and initiating and teaching two new knowledge management subjects at Shanxi University in China.

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