Growth Governance

Digitalization is rapidly transforming the pace of market dynamics, fueling the dematerialization of traditional organizational designs, and, consequently, challenging companies to independently define the dynamic interplay between owners, non-executive board, executive leadership, and field operations. Proactive, owner-driven and alignment-centric governance with an emphasis on cognitive and transformational capabilities rather than just domain expertise, determines long-term firm performance.

To support peer-outperformance in a 'distributed' world, the board must serve as a competitive advantage. The board's ability to 'sense', 'make sense', and foster capabilities and processes enabling environmental enactment rather than just adaptive capacity will be central to performance-centric governance. This forms the core of KCRI practice and research.

The KCRI governance approach is based on three central beliefs: (1) the increasingly distributed nature of market environments rather than the pace of change challenges strategic renewal; (2) cognitive capabilities gain in importance relative to domain expertise; and (3) the board assumes a critical role in developing a firm's dynamic capabilities: sensing, sensemaking, and strategic renewal.