The Evolving Role of Board Leadership in an Era of Disruption: Q&A with Professor Mike Barger

As faculty director of the new Michigan Ross Executive Education Board Director Program, built in collaboration with global EdTech leader Emeritus, Professor Barger shares timely insights on the skills today’s directors need, common blind spots, and how the role is transforming for the future.

What role do board directors play in guiding companies through today’s geopolitical uncertainty, ESG risks, and economic volatility?

Board directors are vital navigators in times of uncertainty, serving as stewards who anticipate and proactively identify risks while ensuring strategic resilience. In today’s business landscape, marked by rapid geopolitical shifts and economic fluctuations, boards must provide thoughtful oversight and ensure strategic clarity. Directors must actively engage with management to understand external forces shaping business environments, including global political dynamics and stakeholder concerns. By fostering open dialogue on these issues and encouraging comprehensive risk assessments, directors enable organizations to prepare strategically and respond swiftly to emerging opportunities and threats. Boards are instrumental in guiding long-term investment decisions that align with organizational values, purpose, and the core strengths of the enterprise.

What are the biggest blind spots of today’s corporate boards?

One significant blind spot for many boards is the tendency to prioritize short-term financial outcomes at the expense of long-term strategic stability and stakeholder value. This prioritization can lead boards to overlook critical risks in areas such as corporate culture, cybersecurity, and sustainability, which may not immediately impact financial performance but can profoundly influence long-term organizational resilience. Another notable blind spot involves diversity, not only demographic but also cognitive and experiential diversity. Boards that lack varied perspectives may fail to identify emerging threats or opportunities effectively. Finally, boards often underestimate the speed and impact of technological disruption, lacking sufficient technological literacy to provide adequate oversight in areas such as artificial intelligence, digital transformation, and cybersecurity, leaving their organizations more vulnerable to unanticipated risks.

How are emerging technologies like AI and cybersecurity threats reshaping board-level responsibilities?

Emerging technologies, notably artificial intelligence (AI) and cybersecurity, have fundamentally reshaped board-level responsibilities, demanding greater technological literacy and proactive oversight. Board directors now play a critical role in ensuring that their organizations strategically leverage AI for competitive advantage while addressing associated ethical considerations, privacy concerns, and regulatory requirements. With increasing cybersecurity threats, boards must prioritize robust security frameworks, oversee the development of effective incident response strategies, and hold management accountable for maintaining secure operations. The expectation for board members today includes a thorough understanding of digital risks and opportunities and that resources are adequately allocated for effective technology governance and cybersecurity oversight.

With increasing pressure to balance short-term performance and long-term resilience, what strategic skills do board members need most?

In today's dynamic environment, board members must cultivate strategic foresight, critical thinking, and effective risk management skills. The ability to balance immediate financial results with strategic investments that deliver sustainable long-term value is paramount. Directors need strong analytical skills to rapidly assess complex situations and discern the longer-term implications of short-term decisions. Exceptional communication skills are also crucial, allowing directors to articulate clear strategic rationales to diverse groups of stakeholders effectively. Additionally, boards require a deep understanding of corporate governance principles, regulatory compliance, and fiduciary responsibilities to navigate challenges ethically and responsibly. Equipping themselves with these capabilities ensures that board members can effectively guide their organizations toward long-term success despite external pressures.

What are some of the key challenges executives face when transitioning from senior executive roles into board members?

Transitioning from executive roles into board positions presents distinct challenges, particularly in shifting from operational management to strategic oversight. Executives must adjust their mindset from managing day-to-day operations to focusing on broader governance responsibilities, such as risk management, fiduciary oversight, and strategic direction. Another challenge is learning to influence through questioning and strategic guidance rather than direct control. Executives accustomed to leading teams directly may find stepping back into an advisory and oversight role challenging, which requires a collaborative, consensus-building approach. Additionally, board members will be asked to develop a holistic, cross-functional understanding of organizational issues, requiring an ability to quickly assimilate diverse perspectives and information, moving beyond what may have been their previous functional expertise.

Given the growing complexity of board responsibilities, why is ongoing education and development essential for both current and aspiring board members?

Ongoing education and development are essential for board members to keep pace with evolving corporate governance expectations, regulatory changes, technological advancements, and emerging risks. The complexity of today’s global business environment demands continuous skill enhancement and knowledge expansion. Board members must regularly update their understanding of governance best practices, cybersecurity risks, strategic leadership, and ESG integration. Continuous education equips directors to make informed decisions, anticipate future trends, and effectively oversee organizational strategy. Ongoing development also fosters a culture of accountability, transparency, and responsiveness, reinforcing stakeholder trust and ensuring the board remains effective and well-prepared to address future challenges and opportunities.

As the faculty director for the new Michigan Ross Executive Education Board Director Program, what makes this program different from other board certification or education offerings?

The Board Director Program stands out due to the distinctive partnership between the Ross School of Business and Emeritus, blending rigorous academic expertise with innovative digital learning. Our program uniquely combines robust online modules with interactive live sessions featuring experienced board members, providing practical insights and real-world relevance. The five-day residential experience at the University of Michigan offers participants a valuable opportunity to engage directly with world-class faculty and network extensively with peers. The curriculum integrates contemporary governance topics, case studies, and global insights, ensuring participants gain comprehensive, actionable strategies tailored explicitly for effective governance in today’s complex environment.

How do you see the role of the board director evolving over the next five to ten years, and how is this program preparing leaders for that future?

Over the next five to ten years, the role of board directors will evolve significantly, increasingly emphasizing agility, technological literacy, ESG oversight, and proactive stakeholder engagement. Directors will be required to rapidly assimilate complex information, manage diverse stakeholder expectations, and strategically navigate unprecedented technological disruptions. Our program directly addresses these evolving demands by offering comprehensive training in fiduciary responsibilities, strategic stakeholder management, digital oversight, and ESG governance. Through interactive modules, live expert sessions, and immersive residency experiences, our program equips leaders with essential skills and insights to adapt confidently to future governance challenges, ensuring they remain effective and responsive directors in today’s and tomorrow’s rapidly changing environments.

The Board Director Program from Michigan Ross Executive Education, built in collaboration with global EdTech leader Emeritus, is an immersive five-month program that empowers senior executives with the strategic insight and governance skills needed to excel in board roles across diverse industries. The program’s comprehensive curriculum is delivered through a blended modality of live online, asynchronous modules, and in-person sessions on the Michigan Ross campus in Ann Arbor, MI. Current board members and senior executives aspiring or planning to serve on corporate or nonprofit boards are invited to apply.