Rethinking Risk & the Board Agenda

ADVANCING EXEMPLARY BOARD LEADERSHIP© NACD. All rights reserved.

Managing Status Quo Risk

Rethinking Risk & the Board Agenda

NACD SummitDeer Valley, UT December, 2013

Adam HartungManaging Partner, Spark PartnersCEO, Soparfilm Energy CorporationChairman, The Content Laboratory

2013 Adam Hartung

© Adam Hartung 2013

Which of these companies do you think is most likely to double revenue in the next 5-10 years?

Boeing

Disney

Starbucks

Apple

1

2

3

4


Which of these companies do you think is most likely to fail in 5-10 years?

NBC/Universal/Comcast

Microsoft

United Airlines

Facebook

1

2

3

4


On which of these Boards would you prefer to have served in the last 3 years?

OR

OR

OR


Doing things right, or doing the right thing:What’s the Board’s Role?

Value Proposition:

What You Need to Know, at Your Fingertips


Publishers Enhanced Delivery, But Missed the “Game Changer” Surrounding Them


The true secret to business success surprised us

Overcoming Lock-in to past success

The biggest risk in business today is

Status Quo Risk

Core

Focus


Apple’s success came from creating new markets – Changing the Game


Apple’s best skill has been anticipating the future - rather than “execution”


How can Boards help companies manage Status Quo Risk?

Be future-oriented

Obsess about competitors

Encourage disruption

Force white space


VS.

Step 1 – Focus on future trends;not past markets/solutions


Rethink the Board agenda; Reallocate the discussion time

60% ?

33% ?

20% ?

Less than 20%?

What percentage of your Board’s time is spent discussing

Market Trends?


Step 2 – Focus on needs and competitors; not current solutions and customers

Key Question: How much is spent on improving the current business model vsDeveloping new markets, opportunities and business models?


Obsess about fringe competitors and Game Changing opportunities

VS.


Step 3 – Ask how your company will be disruptive; not just how it will be better, faster, cheaper


No company is beyond Game Changers, and Managing Status Quo Risk


Step 4 – Ask about white space projects and teams


Prediction

Boeing

Disney

Starbucks

Apple

1

2

3

4

Revenue Doubler:

?

!NBC/Comcast

Microsoft

UAL

Facebook

1

2

3

4

Likely Investor Failure:


Manage Status Quo Risk for superior rates of return

Invest for the future, not from the past

Focus more on competitors, less on customers

Be Disruptive,sustaining will decline

Look for White Space projects to innovate and learn


Contact Information

847.726.8465www.adamhartung.com

[email protected]

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