Khwaja's Take: NASDAQ, IBM Client Zero, Conference Board, VC Mindset, Cash Flow, Boeing's Union, AI Strategy, Avis Data Breach, Ecosystem,LinkedinNews

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1. What Boards Can Learn From Boeing's Hiring Freezes and Jet Orders

What happens when a company’s balance sheet faces a storm? Boeing is currently in the eye of that storm. With the recent machinist strike, the stakes are high. Ratings firms are sounding alarms, warning that prolonged work stoppages could plunge Boeing’s debt into junk status. This isn’t just a financial hiccup; it’s a wake-up call for board directors everywhere due to labor issues and other headwinds.

This situation is a critical reminder for all board directors, especially when engaging on capital allocation with CIOs and CFOs. The sooner we address balance sheet issues, the better we can protect cash flow and ensure long-term sustainability. As a board director with over 25 years of experience, I’ve seen firsthand how critical it is to understand the real costs and risks of poor cash management. The question isn’t just whether Boeing is at risk of insolvency; it’s about how we, as leaders, can prevent such crises in our own organizations.

A "T" shaped board director—someone who possesses both depth and breadth of knowledge—can make all the difference. These directors ask tough questions and engage deeply in planning, balancing short and long-term objectives. They understand that as revenues grow, so does inventory, which can consume precious cash flow.

In today’s fast-paced environment, AI can be a game-changer. It’s not just about automation; it’s about doubling down on product-led growth strategies and increasing the velocity of value creation.

Focused innovation and strategic capital expenditure are essential to build the capacity we need to thrive. CEOs, CFOs, and boards must prioritize high-quality earnings and sustainable business models for long-term success.

Recently, I engaged in an insightful discussion with David Moffett on the importance of sustainable growth over short-term profits. Gain valuable insights from David Moffett, former CFO of US Bancorp and current board member of CSX and PayPal, by clicking here: https://lnkd.in/eQ_-ajQgSo.

I ask you: Are you prepared to navigate the complexities of cash management and capital allocation in your organization?

Share your thoughts on how board directors can better oversee risks associated with cash flow, working capital and capital allocation.

Walkout Tests New BOEING CEO

2. Boards "owning" AI Strategy Direction Makes All the Difference

AI is not just a feature; it’s a revolution waiting to unfold. While The Wall Street Journal analyses suggest that AI primarily enhancing existing products, I see a much broader horizon. AI is a General Purpose Technology, capable of transforming industries and driving strategic initiatives across the board. This is where the role of Boards in AI Oversight becomes crucial. Boards must own AI Strategic direction.

As competent and engaged Board Directors, we must recognize that AI can be a powerful strategic enabler in achieving both short-term and long-term objectives. In the immediate term, it can streamline operations, boost productivity, and improve efficiency—impacting those all-important below-the-line metrics. But let’s not stop there. The true potential of AI lies in its capacity to drive top-line growth.

3. Data Breaches -Why Boards Systemic Governance Matters!!

In a world where data breaches are becoming alarmingly common, recent decision (https://shorturl.at/R9nag) by The Walt Disney Company to stop using Slack following a significant hack serves as a wake-up call for all organizations.

This move, while prudent, raises an important question: What proactive steps can board chairs and lead directors take to prevent such incidents in the future? The rise of shadow IT is a growing concern. The attack surface has increased due to AI.

As technology continues to evolve, so do the risks associated with it. Here are some actionable strategies I recommend Boards to strengthen their organization’s cyber resilience:

First, engage with business leaders to take ownership of the cybersecurity strategy direction. Cybersecurity should not be an isolated function; it must be integrated into the overall business strategy.

Next, dig deep into the cybersecurity roadmap for security investments. Understand where your capital allocations are going and ensure they align with your strategic goals. Seek metrics on security behavior and culture programs. It’s essential to foster a culture of security awareness among employees, as they are often the first line of defense. Oversee multi-year budget plans that are aligned with your cybersecurity strategic direction. This ensures that your organization is not just reacting to threats but is prepared for them. Ensure that senior management understands the interconnectedness of cybersecurity risk, operational risk, and business risk. This holistic view is crucial for effective risk management.

Finally, ask management to showcase the Cyber Risk Dashboard. This tool can provide real-time insights into your organization’s cyber risk landscape and the capabilities associated with monitoring and managing those risks.The landscape of cybersecurity is ever-changing, and it’s your responsibility as board directors to stay ahead of the curve.

What steps is your board taking to strengthen cyber resilience? I’d love to hear your thoughts in the comments below.

4. Why Boards Conversation On Cybersecurity Must Change?

The conversation around cybersecurity must shift in today's rapidly evolving digital landscape. At the NACD (National Association of Corporate Directors)'s Risk to Recovery event, I had the privilege of engaging with Board Directors on a more critical topic: the transition from viewing cybersecurity merely as a risk to recognizing it as a driver of value creation.

Cal Smith was fabulous in moderating the discussion with the panelists that included Lisa Barry Frist, Jake Parsons, and Adam Solander. We discussed on the pressing topics that is more relevant to today's boardroom. Each of the panelists brought unique perspectives and a breath of fresh air.

We discussed the importance of proactively identifying and assessing cyber risks, but more importantly, I explored how a strategic approach to managing these risks can enhance business outcomes.

In my view, Cyber resilience should not just be about protecting assets; it should be integrated into the very fabric of business strategy. It should be more than business continuity and incident response planning. This means that boards must actively oversee both financial and non-financial metrics associated with cybersecurity.

I posed some thought-provoking questions to my fellow panelists:

- How can we increase sales by tying cybersecurity to value creation?

- How can we enhance customer experience, thereby driving earnings growth, through our cybersecurity initiatives?

- How can we adopt "security by design" and "privacy by design" practices to foster a risk-aware culture?

The forward-looking boards are those that not only engage in assessment and benchmarking of their cybersecurity programs but also connect these initiatives to broader business priorities. By eliminating silos between management and the board, we can shape a culture that values cybersecurity as a strategic asset for value creation rather than a mere compliance checkbox.

Let's embrace this shift and champion a narrative that positions cybersecurity as a cornerstone of sustainable growth and innovation. The bonus was highly memorable exchanges with FIS Board Director Lee Adrean, COPT Defense Properties Board Director Essye B. Miller, The Aaron's Company, Inc. Board Director Marvy Moore, Epi Breads Board DirectorCindy Baerman, Bush Brothers & Company Board Director MARISOL ANGELINI, NACD.DC, Aspen Aerogels Board Director Becky BlalockApplied Minerals Board Director Mario Concha, and Board Director Thomas Pennella.

I invite you to share your thoughts on how we can further integrate cybersecurity into our business strategies. What steps are your boards taking in your firms to “own” cybersecurity strategy direction for value creation -profitable growth etc.?

5. The Race for AI Supremacy is Not just About Technology but Strategy.

Are we truly ready for the AI revolution, or are we merely scratching the surface? As I recently engaged with Board Directors at Nasdaq, a pressing question emerged: How do we navigate the complexities of AI in a world fraught with geopolitical risks and talent shortages?

The launch of Alibaba Group’s new AI models is a stark reminder that the race for AI supremacy is not just about technology but strategy. I stressed the importance of boards owning “AI” strategy direction and the power of business and government partnerships. AI should not be viewed as a commoditized tool.

It's a holistic AI ecosystem encompassing language services, vision capabilities, and many must-have features like responsible AI, data engineering, and model management. The real challenge lies in integrating these elements into our existing frameworks.

Many organizations are turning to GenAI productivity assistants for quick wins. But let's be clear: relying solely on these tools for short-term gains is a recipe for stagnation. To harness the true potential of AI, businesses must embrace transformational change. This means embedding AI into the very fabric of their processes and strategies.

As we look to the future, the companies that will thrive are those that prioritize a comprehensive AI strategy. This involves fostering open-source innovation, leveraging government partnerships, and winning the war for AI talent. It's about creating a level playing field where every player can innovate and contribute. So, I invite you to reflect: How is your board and your organization approaching AI integration? Are you merely adopting technology, or are you embedding it into your strategic vision?

6. What does true leadership look like in the face of uncertainty? 

As we prepare to celebrate Nikesh Arora as the CED Distinguished Leadership Honoree, I can’t help but reflect on the remarkable journey of leaders like him and last year's awardee, Arvind Krishna of IBM. Both exemplify what it means to lead with purpose during challenging times.

In a world where economic uncertainty looms large, these leaders are not just navigating the storm; they are steering their organizations toward a brighter future. They embody corporate citizenship and a commitment to public policy that prioritizes equal opportunity, good tech, and social justice. Their actions remind us that leadership is not just about profits—it's about people.

Nikesh’s recent interview with Dr. Lori Esposito Murray is a must-watch. Lori always brings a breath of fresh air with her thought provoking questions.

🎧Listen Now:

Website: https://lnkd.in/e3uwB3_F

Apple: https://apple.co/3J0xrhQ

Nikesh dives deep into his vision for the future of AI and cybersecurity, shedding light on how we can transform threats into strategic advantages. This is a conversation I often have with C-suite executives and board directors. Cybersecurity is no longer just a checkbox; it’s a cornerstone of business resilience and value creation.

As we honor these exceptional leaders, let’s also consider our roles. How can we, as board directors and agents of positive change, contribute to a more civil and just society? How can we leverage technology to uplift our communities while driving responsible innovation?

7. Are We Truly Advancing Women Into Leadership Roles? 

The The Wall Street Journal article highlights a stark reality: a decade after Sheryl Sandberg's "Lean In," progress for women in the workplace remains disappointingly slow.

As board directors and leaders, we have a critical responsibility to change this narrative. Talent development is not just a box to check; it’s inexorably linked to your overall strategy and risk management.

Boards must actively engage in discussions about talent, ensuring that women are not just included but prioritized in every strategic initiative.

This means asking the tough questions:

- How many women are being considered for key executive positions?

- What percentage of women are identified as "high potential" in development programs?

- How long do these "high-potential" employees stay in their roles before moving elsewhere?

These metrics and leading indicators are vital for tracking progress and ensuring accountability.

I was particularly inspired by Jane Edison Stevenson’s call for more women in operating roles. It’s a reminder that oversight of talent development should be a full-board responsibility, with management taking the lead on planning and execution.

Additional Reading from McKinsey & Company:https://lnkd.in/ezUxFCiB

8. Are We Truly Prepared For The Cybersecurity Challenges of Tomorrow?

Teneo gave executives a fascinating piece of advice (https://shorturl.at/Kph2x) on cyberattacks and its prevention. I would add that it all starts with the Board.

Here is my Take:

In an age where cyber threats evolve faster than we can blink, the question isn’t just about having a cybersecurity strategy—it’s about aligning that strategy with your core business objectives.

If your board isn’t asking the right questions, you might be missing out on a golden opportunity to drive value.

Consider this: A recent study revealed that organizations with a well-integrated cybersecurity strategy see a 30% increase in customer trust and loyalty. That’s not just a statistic; it’s a call to action for every board member and CEO. As I counsel Board Chairs and Lead Directors, I emphasize the need for a "T" shaped board—one that dives deep into the intricacies of cyber risk while also understanding its impact on revenue, productivity, customer service, "and" talent.

Here are the critical questions every board should engage as they own "cybersecurity" strategic direction:

1. What is our cyber-risk posture?

2. Are we correctly allocating resources?

3. Are we resilient to cyber risks?

4. What industry standards do we align to?

5. How do we compare to our peers?

6. How do we safely adopt generative AI?

7. Are we secure and compliant?

These aren’t just questions; they’re the foundation of a future-fit strategy. By addressing them, we not only protect our organizations but also unlock new avenues for growth and innovation.

Let’s shift the narrative. Cybersecurity isn’t just a cost; it’s an investment in our future. It’s about creating a resilient organization that thrives in the face of adversity.

What steps is your board taking to integrate cybersecurity with your business strategy?

9. 🚀 Are We Ready For The Next Leap in AI innovation? 

As I engage with Board Chairs, Lead Directors and C-suite, one thing is clear: we are at an inflection point for Autonomous AI Agent Development. Do you think Autonomous AI Agents replace Salesforce and Workday?

The AI technology landscape is evolving rapidly, and forward-thinking boards must harness this change for both incremental and radical innovation. For example, Automation has come a long way, from handling simple tasks to managing complex operations.

Today, we stand on the brink of a new era with agentic AI, which offers the potential to integrate autonomy, adaptability, and decision-making. This isn’t just about efficiency but redefining how organizations operate.

The distinction between human-in-the-loop and human-on-the-loop is vital. Trust, robust technology, and an ethical policy framework are essential for leveraging AI agents engaging in self-reflection and multi-agent collaboration.

💡As I counsel Board Chairs, keeping an eye on the carbon footprint associated with Net-zero goals is imperative. Efficient management of computational resources across multiple agents requires board engagement and oversight.

To maximize ROI, businesses must integrate legacy systems with modern technologies. Autonomous AI agents can facilitate this through intelligent orchestration, ensuring a seamless data flow between systems.

Imagine AI not just optimizing isolated processes but orchestrating the entire value chain—from detecting manufacturing flaws to delivering products to customers’ doors. Companies that embrace trusted multi-agent collaboration will unlock new products, services, and capabilities. We can transcend traditional limitations by empowering AI agents with information and tools, enabling every company and individual to create more.

I invite you to share your thoughts on how your board is preparing for the AI era.

10. What If The Future of Work Isn't About Where We Sit But How We Connect? 

As companies like Amazon and Salesforce pivot away from remote work policies, we're witnessing a seismic shift in how organizations view talent and culture. This isn't just about office space; it's about reimagining the employee experience (EX) in a competitive labor market.

In my experience counseling Board Chairs and Lead Directors, I've seen firsthand how a positive EX can be the difference between retaining top talent and watching them walk out the door.

It's time for boards to prioritize discussions around talent at every board meeting. This includes nurturing diverse leadership, attracting younger employees, and being vigilant about cultural signals.

Board’s engagement with CHROs must double down on human-centered practices. We need to consider the whole person—their feelings, experiences, and connections. It's not just about filling roles; it's about fostering an environment where employees feel valued and understood.

In this new landscape, hybrid work technology isn't just a tool; it's a superpower. It has the potential to revolutionize the way we work, enhancing collaboration and productivity. Companies that invest in workplace innovations and apply design thinking will not only attract talent but also enhance collaboration.

We must strike a balance between flexibility and the invaluable benefits of in-person brainstorming and social bonding.

Let's not forget that the needs of all employees—especially women and baby boomers—must be assessed. Boards must engage and oversee metrics on Empathy-based management, digitally enabled DEI, and intentional collaboration.

As I shared my insights on IBM's Client Zero Case Studies featuring Watsonx at The Conference Board's Economy, Strategy & Finance Center, the conversation around AI's impact on jobs and Employee Experiences has never been more critical.

As we navigate this transformation, I invite you to reflect on how your board is adapting. What steps are you taking to enhance the employee experience for the value creation?

11. Duty of Knowledge Matters For Boards

Board of Director's duty of care and duty of loyalty extend to their duty of knowledge. LinkedIn News highlighted my take on cash management and capital allocation, and prioritization of high-quality earnings and sustainable business models for long-term success.

Boards must commit to lifelong learning and engage in "all" matters critical to enterprise. Learn more here: https://lnkd.in/eX-M2N-Z

12. Why Boards Should Avoid Guidance Mindset

I counsel Board Chairs and lead Directors to avoid Guidance Mindset. A capable board excels at engagement with all stakeholders including the investors, regulators and Government for value creation. During my career at Bank of America we were the early entrants in infusing capital on Docusign, ecosystem value plays like CashEdge, Yodlee and other security imperatives like guardium for data protection. Of course at IBM we were the market creators and created competitive advantage including the Blockchain, AI, and NOW with Quantum Computing.What has been your experience in eliminating silos between the board and leadership for the value creation associated with startups and unicorns?

13. Importance of Ecosystem During Board's Strategy Co-Creation

In a world where the lines between industries are blurring, the role of boards is more critical than ever. As we witness partnerships like the one between Uber and Waymo, (https://shorturl.at/gbDAA) and Oracle’s partnership with hyperscalers including Amazon Web Services (AWS)(https://shorturl.at/N4vTw), it’s clear that the ecosystem economy is reshaping how we think about value creation.

The traditional boundaries that once defined sectors are dissolving, and with that comes a unique opportunity for boards to lead with purpose, own strategic direction by understanding strategic assets and strategic liabilities.

Here is my advice to Board Chairs, Lead Directors and committee chairs in navigating this transformative ecosystem landscape:

1. Prioritize Value Creation Over Profits: In an ecosystem-driven economy, true success is measured by the value we create for all stakeholders, not just short-term financial gains.

2. Embrace Bold Thinking: Incrementalism is a trap. Instead, dare to make bold bets that can redefine your organization’s trajectory.

3. Identify Control Points: Understand where your organization can exert influence and leverage those control points to create competitive advantages.

4. Engage in Both Physical and Digital Realms: The future is hybrid. Success will come from playing effectively in both spaces, ensuring seamless experiences for your customers.

5. Champion Customer Centricity: Everything rises and falls on how well we understand and serve our customers. True customer value goes beyond revenue; it’s about fostering long-term relationships built on trust and mutual success.

In this new era, influencing customer behavior is more impactful than dictating it. The collective strength of diverse relationships within the ecosystem will be the cornerstone of sustainable growth.Let’s embrace this shift and redefine what it means to lead.

I invite you to share your thoughts on how boards can adapt to these changes.

14. Why Long-term Orientation and VC Mindset Matters

Delighted to see IBM’s bold vision for quantum-centric supercomputer highlighted in the IEEE Spectrum Magazine. Kudos to Arvind Krishna’s leadership in setting the bar high on the power of innovation and good tech for the value creation.

Quantum computing isn’t just another tech buzzword; it’s a paradigm shift that’s set to redefine how we approach problem-solving and innovation. With its ability to process vast amounts of data simultaneously, quantum computing is poised to disrupt industries, offering competitive advantages while also introducing new cybersecurity challenges.

As a board director, it’s crucial to understand that the intersection of quantum computing and robotics will create entirely new markets. Quantum-enhanced algorithms are already being developed on platforms like IBM Qiskit, paving the way for smarter, more efficient robotic systems. This convergence will not only drive innovation but also necessitate a robust governance framework to manage the associated risks.

Is your organization ready for the quantum leap? 🚀

15. Bank of America's Leadership on Minimum Wage

In a world where many companies are tightening their belts, Bank of America is making headlines for all the right reasons. Learn more here (https://shorturl.at/O5xYG) from Axios.

Last week, Bank of America announced a raise in their U.S. minimum hourly wage to $24, which translates to nearly $50K for starting salaries. This bold move is not just about numbers; it reflects a commitment to people and communities, especially during challenging times. Reflecting on my meeting with Brian Moynihan at Brown University, I am continually inspired by his leadership style.

Brian embodies what it means to be a moral leader—radiating genuine humility while relentlessly pursuing value creation through a multi-stakeholder lens.During the tumultuous days of the pandemic, while many companies announced layoffs, Bank of America took a different path. They hired over 2,000 new employees in March 2020 and chose not to reduce jobs. This resilience and long-term vision are what set Brian apart.His concept of "responsible growth" emphasizes sustainable expansion while managing risk and serving customers, shareholders, and communities.

Under his leadership, Bank of America has not only become more efficient and profitable but has also made significant strides in environmental sustainability and community development.For those on corporate boards, I encourage you to explore JUST Capital. This organization advocates for living wages and economic justice, spotlighting companies like Bank of America, Costco Wholesale, and Target that are leading the charge in raising wages above the federal minimum.

As we move forward, let’s champion a future where businesses prioritize people alongside profits. What are your thoughts on the role of boards in overseeing their firms in supporting employees and their needs, including through better wages, education and training programs, and paid family and medical leave in today’s economy?

I’d love to hear your insights in the comments.

16. What Happens When a Company’s Balance Sheet Faces a Storm?

Boeing is currently in the eye of that storm. With the recent machinist strike, the stakes are high. Ratings firms are sounding alarms, warning that prolonged work stoppages could plunge Boeing’s debt into junk status. This isn’t just a financial hiccup; it’s a wake-up call for board directors everywhere due to labor issues and other headwinds.This situation is a critical reminder for all board directors, especially when engaging on capital allocation with CIOs and CFOs. The sooner we address balance sheet issues, the better we can protect cash flow and ensure long-term sustainability.

As a board director with over 25 years of experience, I’ve seen firsthand how critical it is to understand the real costs and risks of poor cash management. The question isn’t just whether Boeing is at risk of insolvency; it’s about how we, as leaders, can prevent such crises in our own organizations.A "T" shaped board director—someone who possesses both depth and breadth of knowledge—can make all the difference. These directors ask tough questions and engage deeply in planning, balancing short and long-term objectives. They understand that as revenues grow, so does inventory, which can consume precious cash flow.

17. Why Board Composition Matters For Value Creation

In today’s rapidly evolving corporate landscape, the importance of union experience on corporate boards cannot be overstated. As we reflect on the challenges faced by companies like Boeing, particularly with ongoing union issues, it’s clear that having a deep understanding of labor relations is a significant asset. Union expertise not only strengthens labor relations but also plays a crucial role in risk mitigation.

Companies that recognize and embrace this expertise can enhance workforce productivity, especially in industries where labor unions are prevalent. Take a look at the recent proxy reports: UPS mentioned "union" 40 times, while Boeing only referenced it 14 times. This disparity raises an important question: Are we fully acknowledging the value of union experience in our board skills matrix?

In sectors where labor unions are pivotal, this expertise should be highlighted as a critical component of corporate governance. Balancing union considerations with other corporate needs is essential, but overlooking this aspect could lead to missed opportunities for growth and innovation.

As we move forward, let’s advocate for a more inclusive approach to board composition that recognizes the unique contributions of those with union experience.

What are your thoughts? Should we explicitly call out union expertise in Boeing's proxy report? I’d love to hear your perspectives on this vital topic.

PS:-Kudos to Boeing for calling out Engineering/Technology, Cybersecurity/Digitization, and Climate Change in the Board Skills Matrix.

18. Boards Have a Moral Imperative to "Own" Purpose Direction

"Purpose-driven leadership is not just a trend; it's the future of business." Reflecting on my recent visit to the New York Stock Exchange, I was reminded of the profound impact that purpose can have on an organization. Standing beside the Medtronic exhibit, I couldn't help but think of my mentor, Bill George, whose leadership transformed Medtronic from a $1 billion company to a $60 billion powerhouse. His unwavering commitment to safety and innovation was rooted in a clear purpose: alleviating pain and restoring health.

In today's rapidly evolving geopolitical and technology landscape, the call for businesses to define their purpose beyond profits has never been more urgent. The NACD (National Association of Corporate Directors)'s "The Future of the American Board Report" emphasizes that corporate purpose is essential for long-term value creation. As board directors, we must embrace this guiding principle to navigate the complexities of our times.

Here's what I've learned from Bill George and my experiences in counseling Boards and C-suite:

✅ The modern CEO must embody a higher purpose, driven by curiosity, good tech, and a global perspective.

✅ Leaders today need to seek new paradigms and catalysts, viewing challenges through a multi-stakeholder lens.

✅ When everyones talents (leadership “and” all employees) unite, the collective insights of forward-looking board directors succeed and illuminate the path forward.

✅ Boards must be agile, providing counsel that adapts to the ever-changing global landscape and cultural dynamics.

As we look to the future, let's champion a leadership style that anchors higher purpose with business strategy. It's time for board chairs and lead directors to double down on this ethos, ensuring we have the right CEO and executive team to drive meaningful change and value creation.If you resonate with this vision, I invite you to share your thoughts below.

Let's ignite a conversation about the power of purpose in board leadership and beyond.

19. Boards Must Expand AI Aperture With Big Bets, Long-term Orientation And Patience

AI is not just a feature; it’s a revolution waiting to unfold. While The Wall Street Journal analyses suggest that AI primarily enhancing existing products, I see a much broader horizon. AI is a General Purpose Technology, capable of transforming industries and driving strategic initiatives across the board. This is where the role of Boards in AI Oversight becomes crucial. Boards must own AI Strategic direction.

As competent and engaged Board Directors, we must recognize that AI can be a powerful strategic enabler in achieving both short-term and long-term objectives. In the immediate term, it can streamline operations, boost productivity, and improve efficiency—impacting those all-important below-the-line metrics. But let’s not stop there. The true potential of AI lies in its capacity to drive top-line growth. Imagine harnessing AI to create new revenue streams, enhance customer experiences, and foster game-changing innovations that set us apart from the competition. Think about the possibilities—like the emergence of Robotaxis, which could redefine urban mobility.

To my fellow Board Directors and Board Chairs, I urge you to embrace this mindset. Don’t view AI as just another tool; see it as a catalyst for strategic transformation. By integrating AI into our corporate purpose and governance frameworks, we can oversee our organizations toward a future that is not only profitable but also socially responsible.

Let’s champion a vision where AI is leveraged for innovation and growth, ensuring that we remain at the forefront of our industries.

What are your thoughts on the role of AI in shaping the future of business? I’d love to hear your insights.

20. Winners Are Those That Embrace Strategic Agility

AI is not just a trend; it's a boardroom imperative that demands our immediate attention and strategic foresight. As we navigate the complexities of artificial intelligence, it's clear that the landscape is evolving rapidly.

According to The Wall Street Journal, (https://shorturl.at/l5Zqt) highly skilled AI talent is becoming a rare commodity, and as reported by Sequoia Capital, AI businesses must generate a staggering $600 billion in revenue from investments in data centers and chips alone. Yet, as Mark Zuckerberg pointed out, monetizing AI applications is still years away. So, what does this mean for CEOs, Lead Directors, and committee chairs in technology, innovation, and cybersecurity?

Here is my counsel:

✅ Embrace AI Opportunities: Look for new revenue streams while mitigating risks through human-in-the-loop practices.

✅ Adopt a Holistic AI Strategy: Don’t limit your focus to generative AI; consider other technologies like predictive analytics, decision intelligence, and autonomous systems.

✅ Leverage the Ecosystem Economy: Democratize capabilities for long-term success, much like an App Store model.

✅ Treat Data as Your Competitive Edge: Your AI strategy should never be outsourced to an API call. Maintain oversight on cost/value models and ethical considerations.

✅ Prioritize Security and Accuracy: Data security, cost, safety, and potential IP leakage should be top priorities on your board agenda.

✅ Cultivate a Trust-infused Board Culture: Align your board composition to foster trust, prioritize talent, and engage multiple stakeholders.

✅ Balance Agility and Long-Term Vision: Reinforce a culture that values both immediate responsiveness and sustainable growth.

✅ Understand Superalignment: Recognize the significant financial implications of achieving AGI and its capacity for self-improvement.

✅ Strengthen Oversight: Risk tolerance, aligned use cases, and disclosure obligations are critical to your AI journey.

Remember: Oversight, oversight, oversight!The future of AI is not just about technology; it’s about how we govern it. Let’s lead with purpose, prioritize ethical practices, and ensure that our strategies are as resilient as the technologies we embrace.

21. Boards Non-Financial Metrics Oversight Must Include Wellbeing

Have you ever wondered how a simple daily habit can transform your health and well-being? This morning, I was inspired by Kat Cole's appearance on CNBC, where she shared insights about AG1, a daily foundational nutrition supplement. It’s fascinating to see how something as straightforward as a drinkable scoop can encapsulate vitamins, minerals, probiotics, and whole food-sourced ingredients all in one. AG1 is not just about greens; it’s about empowering our bodies to thrive.

In a world where we often overlook our health amidst busy schedules, products like AG1 remind us of the importance of nurturing our whole selves—body, brain, and gut. Kat Cole, a remarkable business leader and innovator, has a track record that speaks volumes.

As the president of Cinnabon, she didn’t just lead a brand; she transformed it, driving it to over $1 billion in global sales. Her journey is a testament to what visionary leadership can achieve. What I admire most about Kat is her commitment to philanthropy and mentoring. In a time when businesses are expected to contribute positively to society, her approach serves as a beacon for aspiring leaders.

As we navigate the future of business, let’s not forget that our health and well-being are foundational to our success. Investing in ourselves, whether through nutrition or mentorship, is a step towards sustainable growth. I encourage you to reflect on your daily habits.

What small changes can you make today that will have a lasting impact on your health and leadership journey?

22. Business And Goverment Partnerships Are Critical For Inclusive Capitalism

Are we truly harnessing the power of collaboration between business and government for the greater good?🤔 At the Harvard Business School Club of Atlanta Leadership Breakfast, I had the privilege of engaging in a thought-provoking conversation with David Cummings and Jon Birdsong from Atlanta Tech Village.

Our discussion centered around an idea that’s becoming increasingly vital: the synergies and value creation opportunities that arise when businesses and governments work hand in hand.

David, a visionary behind one of the largest tech startup hubs in the U.S., has shown us how strategic partnerships can transform not just neighborhoods, but entire cities. His work in revitalizing South Downtown Atlanta is a testament to the impact that thoughtful collaboration can have on community development. It’s not just about innovation; it’s about creating a legacy that balances modern growth with cultural preservation.

Jon Birdsong’s commitment to mentoring young entrepreneurs adds another layer to this narrative. He embodies the spirit of giving back, ensuring that the next generation of founders is equipped with the wisdom and guidance needed to navigate the complexities of startup life.

As leaders, we must advocate for a greater good through our business and higher purpose strategies. By anchoring our initiatives in partnerships with government entities, we can shape regulations that not only foster innovation but also prioritize societal well-being.

Imagine the possibilities when we align corporate purpose with all stakeholders! Let’s challenge ourselves to think beyond profit margins.

How can we leverage our platforms to drive meaningful change?

Share your thoughts in the comments! If you found this perspective insightful, please consider reposting. Together, we can redefine success in a way that benefits all stakeholders.

23. David Solomon's Take On AI Trends

What if the key to unlocking your firm’s profitable growth potential lies in embracing AI with strategic agility not fearing/delaying it? 🤔Last week's CNBC interview, David Solomon, CEO of Goldman Sachs, provided fascinating insights, including that the Consumer is still healthy and Consensus is in a soft landing spot. Regarding AI, David talked about the need for real use cases for AI. He emphasized productivity first, then cost efficiency.

He mentioned cost efficiency takes time due to process changes. While I respect his perspective, I see it differently. AI isn't just a tool for productivity and efficiency; it offers a spectrum of possibilities including new revenues for top line growth and increased earnings growth rate due to operational excellence and superior customer experience use cases.

Imagine automating repetitive tasks while keeping human in the loop practices for complex tasks in decision-making. This is where the magic happens. By integrating AI into workflows, we can alleviate labor shortages and empower employees to focus on high-value activities.

At a recent The Conference Board session, I shared insights from IBM's Client Zero Case Studies featuring Watsonx. The conversation around AI's impact on jobs is crucial. We’re not talking about replacing jobs; we’re talking about transforming them.

With AI, we can enhance productivity, reinvent customer experiences, and uncover insights that drive innovation and new revenues.

And let’s be clear: successful AI integration isn’t just about the technology. It’s about governance, trust, and alignment with sustainability strategies.

As we scale AI models, we must ensure they are built on ethical practices underpinned by sustainability, privacy, data security, and data integrity. This is where board directors and CEOs play a pivotal role in overseeing AI strategy and execution.

At IBM, we have a long history of fostering a culture of innovation. The last two year IBMer Watsonx Challenge saw 178,000 IBMers collaborating to find new ways to harness AI for streamlining processes and driving productivity and new revenues.

So, I pose this question to you: How do you see AI transforming your industry?

Share your thoughts in the comments! If you found this post insightful, consider reposting it to spark further discussion.

24. Why Innovation/Technology Committee Matters To Win The Long Game

Have you ever stopped to think about how the right mix of technology oversight and enlightened governance can redefine a company's future? 🤔 According to The Wall Street Journal AI (https://shorturl.at/lqlpO) is set to revolutionize tech infrastructure. This isn’t just a trend; it’s a seismic shift that demands our attention. Yet, many boards still operate in silos, missing out on the strategic advantages that come from integrating technology and cybersecurity into their governance framework.

I’ve been advocating for the inclusion of a technology/innovation and cybersecurity committee in board governance for years. Why? Because enlightened boards recognize that data governance is not just a checkbox; it’s a catalyst for value creation.

25. Inclusive Board Governance Is A Catalyst For Value Creation

What if the future of corporate governance hinged on lifelong learning, the impact of technology on the enterprise, the enterprise's talent needs, diversity, and the higher purpose?

Last week, I had the privilege of visiting the NYSE, where I was struck by the composition of the ICE Corporate Board—six women out of ten board directors. It isn't just a statistic; it's a powerful testament to the transformative potential of inclusive board leadership.

Today was a special day. I had the honor of engaging with Shan Cooper, an ICE Board Director whose insights were nothing short of illuminating and inspiring. Shan shared her vision for a future where corporate governance is not just about profit, but about shared purpose -greater good. This aligns perfectly with my belief that businesses can—and should—drive societal transformation.

Nzinga “Zing” Shaw was electric and fabulous as always with her moderation on inclusive board governance. It is always a rewarding experience when you are surrounded with your board director friends including NEETI DEWAN, CPA, TheExecutive Yogi™️, Valerie Darling, MARISOL ANGELINI, NACD.DC, Archie L. Jones, Jr., CPA, NACD.DC, Cindy Baerman, Kelly Barrett, Milton H. Jones Jr. , Wyndolyn Bell, M.D. , Sam Divine, Jr.,CPA, MBA, Doug Jackson, Alicia Wilson, CPA, CIA, CISA, CRMA, Marva Bailer, Andrea Henderson, SPHR, CIR, RACR and Irma Goyal Shrivastava. Special thanks to Javin Rudolph III, Durran Dunn, CPA, CIA, Jason Perry and NACD (National Association of Corporate Directors) for sponsoring such a fabulous event.

As I reflect on our conversation, I'm reminded of a quote from the late Ruth Bader Ginsburg: "Real change, enduring change, happens one step at a time." Each step we take toward inclusive capitalism is a step toward a more sustainable and equitable future.

In my work with C-suite executives and boards, I emphasize the importance of integrating diverse perspectives into decision-making. It's not just about compliance; it's about unlocking innovation and resilience. Companies that prioritize diversity are better equipped to navigate the complexities of today's market and are more likely to achieve long-term success.

And that diversity starts at the board room. So, I ask you:

How is your organization embracing diversity and higher purpose in its board governance?

Let's spark a conversation! Share your thoughts in the comments below. If you found this post insightful, please consider reposting it to inspire others.

26. Value Migrates If You Are Not Nimble.

In today’s fast-paced tech landscape, the ability to adapt and personalize experiences is no longer optional; it’s essential for survival and growth.

As we stand on the brink of an AI consumer revolution, the new unveiling of Apple’s “Apple Intelligence” tools (https://shorturl.at/VYJ4S) signals a seismic shift in how we engage with technology. With enhanced capabilities for Siri and innovative features for text generation and photo editing, the new iPhone 16 and iPhone 15 Pro are not just devices—they are gateways to a more personalized, efficient, and intelligent user experience.

But here’s the catch: Are we ready to capture the value this transformation brings? For boards and CEOs, the message is clear: prioritize personalization in your oversight of technology and profitable growth strategies.

The future belongs to those who can harness AI to meet the unique needs of their customers, creating tailored experiences that drive loyalty and profitability.

In my 25+ years of experience, I’ve seen firsthand how nimble innovation can redefine industries. The companies that thrive are those that embrace change, leverage technology for meaningful engagement, and align their corporate purpose with the evolving expectations of their stakeholders.

As we navigate this new era, let’s not forget the importance of ethical technology and privacy. Our commitment to societal transformation must guide our decisions, ensuring that we build a future that benefits all.I invite you to reflect on how your organization is preparing for this AI-driven landscape.

Are you ready to innovate and personalize? Share your thoughts below, and if you found this insight valuable, please like and repost to spark a broader conversation.

27. Geopolitics Demands Strategic Agility, And a Deep Commitment to Technology/innovation.

Navigating the complexities of today's geopolitical landscape, VUCA and poly crisis world requires more than a keen eye; it demands strategic agility and foresight, a geopolitical lens, and a deep commitment to technology/innovation.

Today, I enjoyed engaging in a thought-provoking conversation with fellow Board Directors. We delved into pressing topics such as global economy, geopolitical risks, emerging technologies like AI, the influence of activist investors, and the implications of global elections. Each discussion highlighted a critical truth: the need for robust systemic governance, Boards owning a clear strategic direction and strengthened technology/innovation oversight for value creation.

One key takeaway from our dialogue was the importance of embracing emerging technology and innovation as cornerstones of profitable growth. In a world where change is the only constant, how can we ensure that our organizations not only adapt but thrive?

The highlight of the summit was connecting with brilliant minds like Goldman Sachs’s chief U.S. investment strategist Abby Cohen, Bill Anderson of Evercore, and UK Former Member of Parliament & Minister Alistair Burt.

Meeting with higher purpose leaders including Kris Pederson, Lisa M. Shalett, Byron Loflin, ⭐️ Sabrina Hannam and Jesús Mantas was a treat.

My memories brought back the excitement when I met with fellow Ascend positive changemakers including Sheila Bangalore, Shyam Gidumal and Bhawna Singh. Meeting new board director friends including Nicole Holden, MS, CPA and Rod Lewis Ph.D., Major General (ret.) U.S. Air Force reminded me about the power of my boardroom community that includes “T” shaped skills for the new tomorrow.

The Nasdaq Center For Board Excellence has raised the bar in advancing “Trust” imperative through board excellence. Special thanks to entire NASDAQ team including Vanessa Mesics and Daniela González.The Risk Summit’s insights reinforced my take on the idea that management and boards can no longer function as a silos. It requires a deeper board engagement with all stakeholders including working with government to shape smarter regulations for value creation.As we look ahead, I pose this question to you: How do you see the role of governance evolving in the face of rapid technological advancement and geopolitical shifts?Let’s spark a conversation! Share your thoughts in the comments below, and if you found this post insightful, please give it a like or share it with your network.

28. Your Board Is a Strategic Asset.

Yet some boards fail to advise management when such an opportunity arises. I couldn’t agree more with Nicholas Donofrio on the importance of boards' proding their leaders to become more self-aware. My advice to the C-suite is to forge deep relationship with board members so that they can help you identify your blind spots for the value creation.

A capable board is like a team of rivals (Analogous to Abe Lincoln’s cabinet) that bring unique strengths that management can learn from each and every board director.

What do you think?

29. What Boards Can Learn From AVIS Data Breach

Is your board prepared for the next wave of cyber threats due to increased attack surface due to AI?  Learn more from my 115th LinkedIn Article (https://shorturl.at/5Ur0i).

Recent events, like the data breach at Avis Budget Group, (https://shorturl.at/6vY51) serve as a stark reminder: the digital landscape is fraught with risks that can compromise customer trust and business resiliency. With attackers gaining access to sensitive customer information, it’s clear that traditional oversight isn’t enough anymore. Cybersecurity is no longer just an IT issue—it's a enterprise wide issue, business issue, geopolitical issue “and” boardroom agenda.

As a board director, you hold the keys to your organization’s cybersecurity posture. Here are strategies I advocate to Board Chairs, Lead Directors, & Board Directors to elevate cybersecurity oversight, systemic Risk Governance & ensure your firm is not just reactive but proactive:

✅ Metrics Matter: Seek metrics on device hardening and data protection. Understand how remote access by third-party workforces increases your attack surface.

✅ Shift-Left Practices: Oversee management’s commitment to continuous compliance & regular reviews of third-party assessments. This is not just a box to check; it’s a necessity.

✅ Reskill Your Team: Ensure your security talent is up to date with the latest in data security posture management (DSPM) and business resiliency.

✅ CFO-Board Dynamics: Foster discussions around capital allocation that include risk quantification & securing third-party SaaS applications.

✅ Deep Dive into Cybersecurity: Investigate unauthorized SaaS usage, insecure data management, & application vulnerabilities.

✅ Consolidate Risk Views: Strengthen governance processes to cultivate a thriving risk culture. Under-reporting vulnerabilities is unacceptable; partner with legal counsel to mitigate risks.

✅ Embrace Zero Trust: This isn’t just a trend; it’s a strategic imperative. Seek metrics on Multi-Factor Authentication & Data Encryption to ensure robust security.

✅ Continuous Monitoring: Don’t overlook Endpoint Detection and Response systems. These are your network’s watchdogs, constantly on the lookout for threats.

✅ Reskill Security Talent: Invest in reskilling existing teams & focus on Data Security Posture Management (DSPM) to ensure business resilience, especially in SaaS environments.Implementing these strategies is not a one-time effort; it’s a dynamic process.

Boards that actively engage & own cybersecurity strategy direction not only enhance their firm’s security posture but also bolster business resilience. What steps is your board taking to strengthen cybersecurity? Share your thoughts in the comments, and if you found this post insightful, please repost it to spread the knowledge!

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ABOUT KHWAJA SHAIK

Khwaja Shaik, a digital expert and cyber-savvy board director, brings over 25 years of global experience in technology, cybersecurity, sustainability, nimble innovation, and fintech. He is a sought-after advisor for CEOs and boards globally, providing invaluable insights at the nexus of technology, cybersecurity, and financial services. Khwaja drives profitable growth through innovation, digital acceleration, and risk management. With a career spanning renowned companies like IBM, Bank of America Merrill Lynch, Al Rostamani Group, and PwC, he is internationally acknowledged as an authority in corporate governance, technology governance, VC/startup incubation, and digital resilience.

Khwaja advises CEOs, Boards, and Startups on carving out Future-Fit Tech strategies aligned with board priorities. But beyond his illustrious career, Khwaja's true calling lies in altruism. He staunchly believes in weaving noble purpose into business strategies, championing a model of multi-stakeholder capitalism. Committed to societal transformation, he strives to leave a profound impact through socially responsible, ethical technology, and privacy-centric practices.

Khwaja is a visionary leader with a proven track record of success in transforming businesses through innovation and digital. He has an innate understanding of how to harness technology to create better customer experiences and future-proof operations.

At Bank of America, he managed risk and infused Fintech and Cloud best practices into the firm’s strategy, saving the company $1.1 billion per year during the 2008 financial crisis. At PwC, he incubated new businesses to grow revenue across multiple economic cycles, reshaping industry and platform operating models— digitizing end-to-end business processes to capture value, and protecting firms from cyberattacks through digital resilience.

Khwaja has a history of leading over $10B in digital business transformations by scaling Agile practices for cost optimization, revenue-generation, and societal transformation imperatives. It includes strategic oversight, risk mitigation, business optimization, digital business models to capture profitable growth, customer lifetime value & competitive advantage to Fortune 500 firms.

Khwaja delivered a modern banking platform and transformed the Omnichannel customer experience through world's largest Contact Center platform, serving 1 billion calls, as part of BofA's M&A (CFC, MBNA, Fleet, etc.) to support the AI-led growth strategy.

Khwaja is one of the most exceptional IBMers appointed, with the rare distinction of IBM Academy of Technology member. Holds many patents serves on IBM’s Invention Board. Khwaja is one of the top 100 leaders elevating corporate purpose, driving AI ethics, privacy, data stewardship, regulatory/compliance and sustainability. He provides the direction of IBM's long-term strategy through ESG and good tech.

Khwaja serves on the Museum of Science & History and University of North Florida boards to promote economic equity, social, diversity, and inclusion for the prosperity of all. He teaches emerging tech, systemic risks, cybersecurity, AI ethics, and privacy-by-design efforts at University of North Florida and Competent Boards.

Khwaja is a frequent speaker on Board Practices, Technology, and Cybersecurity at NACD (National Association of Corporate Directors), Competent Boards, New York University School of Law, American College of Corporate Directors, Boardswell etc.

Khwaja is a Fellow of The Herndon Foundation Board Institute, sponsored by Nasdaq & Atlanta Life. Khwaja is proud to be part of both Ascend Leadership's Pinnacle Aspiring Directors Academy and University of North Carolina at Chapel Hill School of Law's 2023 DDI Board Boot Camp. Khwaja holds an MBA and an Engineering degree. Khwaja lived in India, Middle East, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 24 years with two remarkable boys.

More details on Khwaja’s career and thought leadership activities could be found via Linkedin, Khwajashaik.com or follow him on Twitter @Khwaja_Shaik

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