Our partner the Institute of Directors (IoD) recently conducted a survey which takes the pulse of the local director community to identify issues and challenges for company directors in New Zealand.
As a director, you’ll find it interesting to read the results and compare them to your own situation, and use the insights within your organisation.
If you’re a business owner, you’ll find these learnings invaluable for working with your board to run a successful business. Read the full report to hear about what’s top-of-mind for NZ directors on business, economic and governance issues.
Digital leadership critical in a disruptive world
The survey found that technological disruption was a concern with 33% of directors seeing this as a risk to their businesses. Nearly half (47%) of directors expect their organisations will be impacted by major or disruptive change within the next two years, consistent with the 2015 survey. However, only 35% of boards felt they had the right digital skills and experience to lead their organisation’s digital future, and 28% felt they lacked this capability.
Boards should consider developing digital capability to meet their strategic context – to manage risks and maximise opportunities. Directors don’t need to be digital experts but they do need a degree of digital literacy so that they can hold management to account – to ask the right questions, and to understand and probe the answers.
Labour market conditions are a challenge for business growth
Labour quality and capability was again the key concern for directors when asked about the biggest risk facing their own organisation (46%). Net migration has been strong over the past year, which has helped satiate labour demand to some extent. However, firms may not be finding the right skill mix, as significant parts of the net inflow are either students or New Zealanders returning from Australia.
Download infographics from the Director Sentiment Survey 2016.
Want to know more? Access the full IoD report to find out more about the challenges local directors have identified for New Zealand business.