The Governance Implications of Business Disruption

In 2018, corporate boards will increasingly be called upon to respond to how innovative competitors disrupt their companies’ business models.  These competitors use technology, scale, and sharp insights into consumers to lower prices, improve products and services, and draw customers away from traditional companies, forcing those companies to cut costs and lose relevance.[1] Blockbuster, Borders, and ESPN are prime examples of victims of nimble disruptors.

Victims typically overlook the trajectory of disruptors, which focus initially on perfecting their business models rather than their products or services.[2]  Flawed governance can lead to such oversight by making it hard for … Read more