- McKinsey’s “How effective boards approach technology governance” article from September 2022 discusses typical board technology engagement models
- The charts below illustrate the prevalence level of standing technology committees among Global Fortune 500 companies
Source: McKinsey & Company
Findings on Board tech committees…
- 27 percent of Telcoms had Board tech committees
- Finance and consumer companies had a notable number of standing tech committees
- Companies with board tech committee had operating margins100–600 basis points higher than their peers
- Only 12 percent of the Global Fortune 500 companies had standing tech committees as of March 2022
- Most common hesitations for not having a standing tech committee were:
- not finding the right members
- the board becoming too operational
- having too many committees, or
- crowding out technology discussions within the broader boardroom’s discussion of overall strategy
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