Leading through Polycrisis: Why Boards Need Bridge Builders
I wrote this article in 2023. It was originally published by IMD and stems from a collaboration with the “Young Leaders on Board” project, which works with companies on sustainability and long-term thinking by involving young leaders on their boards. The project is a joint initiative of the St Gallen Symposium, a leading platform for cross-generational dialogue with which IMD is an academic partner, the think tank Zukunft-Fabrik.2050, and the board advisory firm Dr Bjørn Johansson Associates. It featured prominently at the 52nd St Gallen Symposium, which took place from 4-5 May 2023 on the theme “A New Generational Contract.”
2026 Update: As boards increasingly grapple with AI governance and systemic risk, the question of who sits at the table is becoming strategically decisive. Since this article was first published, the context has intensified. What many organizations then described as a “polycrisis” has evolved into a more persistent state of systemic volatility, accelerated further by AI, geopolitical fragmentation and growing regulatory complexity.
In my work with boards and executive teams over the past 18 months, one pattern has become even clearer: the question is no longer whether board composition needs to evolve, but how quickly organizations can build the generational and cognitive diversity required to navigate this new environment.
The case for younger voices in the boardroom
31.03.2023 — As organizations face the pressing challenge of navigating multiple interconnected and interdependent crises, the positive value of diversity in the boardroom is becoming increasingly evident. However, while companies have made progress in promoting gender diversity on their boards – or have at least made earnest statements of intent – appointing more youthful board members remains an underutilized opportunity. The average age of a non-executive director in the FTSE 100 last year was 59.9, according to executive search firm Spencer Stuart. The average age of a chairperson was 65.
In today’s volatile, uncertain, complex, and ambiguous business climate, I believe those companies are missing a trick. With the velocity of change in business and society increasing at an exponential rate, boards need to spend less time looking backwards, and more time looking forwards. And if younger people represent the future, the most capable of them should be considered for board positions, too.
Compared to older hands, younger board members bring new ideas and fresh perspectives to the table, as they are less entrenched in their beliefs. They are also more likely to question the status quo, take a long-term view and challenge traditional thinking, for example in regards to ESG issues. Finally, they bring a digital native understanding to every boardroom decision, helping organizations transform so that they stay ahead of the curve in an increasingly digital world.
Appoint directors who can build bridges in a multi-generational boardroom, rather than rebels who want to bulldoze existing practices
In spite of these obvious benefits, age diversity has not traditionally been on the agenda for most boards, with younger leaders struggling to break in, along with those from other historically under-represented groups. That partly reflects the value placed on decades of experience in senior management, which is often viewed as a prerequisite for a seat on the board. That keeps the door firmly shut for more junior leaders.
Broad spectrum of attributes needed
Companies also value continuity – hence the reason why directors often serve for several years – and may be less willing to take a chance on an untested young candidate. In addition, the majority of applicants for director positions are put forward through informal networks, which can reinforce the homogeneity of the board.
One driver of change that may lead to an increase in generational diversity is the broader realization that the optimal board of the future requires a different set of skill profiles altogether. Indeed, in the past few years, it appears that companies are realizing the paramount importance of a broad spectrum of attributes in the boardroom, and the role those characteristics play in tackling issues around sustainability and technology.
While according to Egon Zehnder’s Global Board Diversity Tracker older people continue to outnumber younger people on boards, their research shows that the capital market will start to have a stronger preference for younger and more diverse boards due to their performance in terms of corporate sustainability. “Companies that do not embrace change risk incurring investors’ wrath,” said Paul Washington, Executive Director of The Conference Board ESG Center, a US-based policy think tank in an interview with Bloomberg. “And change typically comes from adding younger directors to a company’s board.”
Sustainability – a term often used interchangeably with ESG – is moving to the core of every company’s business. This awareness is driven by the links between long-term company performance and ESG performance; investors with sustainability at the core of their decisions; and emerging legislation and global reporting standards.
Similarly, digital competencies have been a rising priority for boards, too. According to a report by Gartner in 2022, 89% of board directors said digital business was embedded in all business growth strategies. However, just 35% of board directors reported that they had achieved or are on track to achieving digital transformation goals. While more digital expertise will be required at board-level, the trend is heading in the right direction: the number of new directors in the Fortune 500 companies with a digital background has been increasing, up from fewer than 10% in 2015 to more than 40% in 2021, according to search firm Heidrick & Struggles.
Not every young person is a digital native, and not every elderly person is a technophobe. But many of the new companies pioneering digital innovation are led by the former, so incumbents may consider bringing more of them onto their boards.
Appoint bridge builders not rebels
One interesting approach from the fashion industry is the luxury fashion brand Gucci and their initiative to create a shadow board of millennials. The group’s CEO Marco Bizzarri told IMD Professor Jennifer Jordan the insights “served as a wake-up call” for executives. The question is how to make sure these recommendations are not only heard but implemented.
My advice to companies who want to bring in younger voices onto their board: appoint directors who can build bridges in a multi-generational boardroom, rather than rebels who want to bulldoze existing practices. The most effective directors are respectful of the context and history of the organization and blend the best of the old ways of doing business with their new ideas to improve organizational performance and effectiveness.
To the nominations committee in charge of recruitment of new board members, I’d say: don’t go for the usual suspects, look for unlikely allies beyond your existing networks and put out a public call for the vacant board seat, inviting candidates of all ages to apply. It is also critical for the nominations committee to crystalize why they want to change the board’s composition. Resistance to change is common, so being clear on your motivation for shaking things up can help minimize the discomfort and build the necessary confidence for your board transformation.
Having one young board member in a sea of grey is not going to be enough to challenge established practices and bring about real, systemic transformation
Above all, the appointments must be more than token gestures. Having one young board member in a sea of grey is not going to be enough to challenge established practices and bring about real, systemic transformation. These fresh faces need allies who reinforce and build on their ideas, otherwise their strategic proposals are unlikely to get off the ground.
Navigating digital transformation
I sit on the board of five medium-sized companies in Switzerland and have experienced at first-hand how effective boards can become when its composition is successfully transformed. In two of the boards I serve, we went from no digital expertise prior to my joining the board to increasing it to 50% within five years; I can assure you that our ability to navigate the digital transformation as an organization has seen tremendous progress in both cases during this time.
I have, however, also experienced the opposite – being the token young digital native without any technology-savvy ally in the boardroom. In this situation – which thankfully was only temporary as we have since added more digital expertise to this particular board – it took me missing just one board meeting for my ideas around digital transformation to get shot to pieces in my absence by older, change-resistant directors. Therefore, I cannot stress enough that because boards are ruled by consensus, younger members need followers, not just good ideas to be successful.
By valuing and leveraging the skills and experiences of a multitude of generations, companies create a more dynamic and resilient organization. This is paramount, especially as the business world navigates this ongoing era of polycrisis – an era in which nobody has all the answers. However, the chance of asking better questions that ultimately lead to better answers increases with the best and the brightest talent from all generations at the table.
About Sunnie J. Groeneveld
Sunnie J. Groeneveld is an international keynote speaker and moderator on AI, digital leadership and the future of organizations. As an active board member and executive educator, she brings first-hand boardroom perspective to organizations navigating systemic transformation and technological change.