How boards can separate signal from noise

“Private enterprise right now is in a really interesting moment where public opinion is becoming increasingly a topic of focus,” Mohamed Younis, the new SVP of content at the National Association of Corporate Directors (NACD) told CFO Brew at that organization’s annual summit in Washington, DC.

Younis would know: He joined the NACD this year after 15 years at Gallup, where, in his last role, he served as editor in chief. Younis spoke with us about how boards and C-suites should approach data, and what he’s learned about boards of directors’ priorities.

This interview has been edited for length and clarity.

How data-savvy do boards and C-suites need to be?

I think boards are some of the most data-savvy people on the planet. I think it’s more about separating signal from noise. We live in a world now where there’s so much information, and most of it is fascinating but mildly useful…A lot of the KPIs and metrics that we grew up thinking of as table stakes are still important, but they don’t show the whole picture, and they’re not enough to base every decision on.

The other thing I’ve been hearing a lot from highly successful and important folks is the idea that a multi-year plan is not really feasible anymore. …I think that’s also a reflection of the rate of change, but also a reflection of the kind of ingenuity and creativity on boards, and how people are trying to think outside of the box and how to stay current.

How can boards and finance leaders separate the signal from the noise?

That’s the million-dollar question…A good framework is to constantly be questioning the metrics you are following as a signal. The other thing that’s critical is trying to understand and learn what your competitors are using as signal—not necessarily to replicate that, but to understand how they’re perceiving the landscape and what they perceive as an opportunity…The KPIs, the signals, the data metrics that you choose, they do paint the way you view the world, and they absolutely paint the way a business views opportunity in the marketplace.

Are there signals that boards aren’t paying enough attention to?

I think there are more signals that boards are paying attention to that are a distraction. We live in a time where there are a lot of geopolitical shifts happening, and they tend to completely consume the news cycle, and for a board, it can become very disruptive or distracting to kind of follow every single news story.

What have you learned about boards that’s surprised you?

One thing I’ve learned about boards…is how discerning they are with poking into decision-making. I think so many of us…live in a world where everybody has a sharp opinion and is willing to share it and willing to tell you how things should be done. One of the things that’s struck me is the deliberative nature and restraint in deciding that you know the answer, but focusing more on asking the right question.

What’s top of mind for boards right now?

The number one thing is AI. We do a quarterly poll with our members…and last quarter was the first quarter in which both private company and public company directors said that AI was the number one issue. The other twist on that is AI and cyber together being a real concern, and that’s been a topic of discussion everywhere we’ve gone.

The other topic is how to use AI as a board member, and what role AI technology has in preparing for and in conducting a meeting in a boardroom, which has also been an interesting conversation about privacy, about a duty of care and duty of trust.