In episode 45 of the Data Modernization Minute, Wayne Sadin discusses the need for qualified technology expert (QTE) board directors.
This episode of the CXO Minute is sponsored by Acceleration Economy’s Sustainability Digital Impact Summit, taking place on January 26, 2023. Listeners will receive actionable insights from technology buying committee analysts and leading technology providers. Click here to register today.
Highlights
00:47 — In the aftermath of the recent Southwest Airlines incident, many investors are “going after” the airline to understand what happened. It was recently reported that Southwest Airlines’ board allowed “big stock buybacks and billions of dollars, rather than modernizing systems that were plagued, as was revealed by the Union and by management with technical debt,” says Wayne.
01:07 — In today’s episode, Wayne explains how the Southwest Airlines news has prompted a need for QTE board directors. He describes the history of this role, which was based on the passing of the Sarbanes-Oxley act, which mandated that on the audit committee, someone must be a qualified technology expert.
02:54 — Fast forward from the legislation passing, Russell Reynolds, a consulting firm, published an article called “The Rise of the Qualified Technology Expert in the Boardroom,” which made a couple of key points that Wayne explains.
03:06 — Russell Reynolds pointed out that it’s time to bring technical expertise to the board of directors. Additionally, the article highlights how a QTE board director is not a “digital director.”
05:10 — QTE board directors give companies the opportunity to have someone on the board that is not just an IT person, but someone that is a valuable, well-rounded technology expert. Wayne argues that QTE directors should be added to every board — not just those of technology companies, as it is being built into many products and services offered by companies of all industries today.
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