The Importance of Insights in the Boardroom

Decisions made at the boardroom level carry significant strategic significance. These decisions drive how the organization will go to market, recruit talent, and generate shareholder value. As such, there is little room for misinformation, costly delays, or missteps.

Making sense of a mountain of data

That’s why decisions made at the boardroom level must be informed by solid, relevant, data-led insights rather than instinct or defaulting to what has worked in the past. Today, thanks to cloud storage, automation, and tech-enabled devices, there is an unprecedented amount of available data on which to base these insights. Our digital world generates 2.5 quintrillion bytes of data daily, so the challenge is to cull this data for market indicators that will affect future performance. If an organization attacks this mountain of information with advanced data analytics, it will be able to generate analysis-based insights faster and more accurately than ever before.

Board preparation challenges

According to a recent report by Diligent, 65% of all directors and 71% of public company directors spend time acquiring independent information about the company as part of their meeting preparation. They are gathering industry news, with 77% of directors indicating that they study this type of material to prepare for meetings. In addition, 64% of directors said they look at thought leadership or best practises in corporate governance.

In today's 24-hour news cycle and global media ecosystem, everyone with an Internet connection has access to real-time information—both valid and erroneous. Making business decisions based on inaccurate data or untrustworthy sources could end up doing more harm than good for corporate directors who bear a great deal of responsibility. With the rise of activist investors and social media, directors are under unprecedented pressure to be aware of and incorporate outside opinions. Institutional investors and proxy advisors now have access to sophisticated tools that allow them to mine information on firms independently, putting boards at a disadvantage if they don't have similar capabilities.

Using data-driven insights for competitive advantage

But despite all the attempts at personal preparation and looming external threats, major business decisions are still based on intuition. According to leading analysts, through 2022, up to 95% of business leaders will continue to make decisions using intuition and significantly underestimate risks as a result. Board members that are willing and able to bring neutral, external, and competitive information into the discussion can substantially alter the debate, allowing for more educated and data-driven decisions. The boardroom insights can be used to identify risks, design policy, craft strategies, and make timely, targeted decisions.

This sets the stage for the critical need for reliable and unbiased insights at the boardroom level. OPPiDEA is uniquely positioned to provide these data-based insights to help boards steer the company through business challenges, making more timely and accurate decisions.