The Trends changing the Business Landscape and the Role of the Board

I recently had an opportunity to attend a seminar by the Australian Institute of Company Directors (AICD) on how the business landscape is changing and the vital role of the Board in ensuring that their respective organizations are ready to embrace such change.

I was pleasantly surprised to observe that the discussion on the “Role of the Board” went beyond its traditional boundaries. Whether it is the new “Technological Revolution”, Cyber Risks or even a matter of “Trust”, the disruption to businesses is forcing the role of the Board (and for a good reason) to go beyond the usual realm, such as, providing continuity and direction for the organization, selecting c-level executives, governing organization based on broad agreed objectives and policies and fiduciary duties.

The fast changing and uncertain business climate, in my opinion, have pushed the Board members, to evaluate their role and forced them to make some radical changes to have a Board Composition which necessarily does not reflect the traditional Board cohort. The challenges of “today” faced by organizations have resulted in the Board to have diversity in their “functions”, “thoughts”, “experience”, “gender” and “culture”.

The role of the Board is evolving and is more proactive than reactive. The burden, of risks to organization’s reputation, of commitment to their stakeholders, and to the larger society is vital in shaping the new role of the Board. The extended role shouldn’t just take into consideration what’s disrupting the business today but also how businesses and larger industry sector will be in 5, 10 or even 20 years. The role needs to include more strategic responsibilities, focusing on future transformations and not just current changing trends.

The Board needs to be hands on and be involved throughout the strategy formation process and hence the responsibilities of the Board need to go beyond the board meetings and should be more collaborative in nature with the management of their organizations. This will help the Board to be more responsive to current threats to the organizations from various factors such as Cyber Risks and data thefts.

Furthermore, uncertainty in the businesses caused due to increase in continuously changing global regulatory and compliance requirements and keeping up with the demands of investors is forcing the Boards to come out of their protective shell, be more accountable, and to embrace the shift in their role from just awareness to governance. 

IS THERE A LINK BETWEEN A CORPORATE CULTURE BASED ON SHARED VISION AND VALUES AND ORGANISATIONAL PERFORMANCE?

I have been pondering over this question for many years and now believe that more and more companies are beginning to recognize the importance of strong corporate culture based on shared vision and values of all stakeholders (more importantly of their own employees) in achieving the bottom line.

Even though the idea of vision and values has been explored extensively by numerous academicians and business leaders, and the impact or consequences of developing effective values and vision are well documented, I am surprised to observe that many organisations fail to develop a vision and values that are lived and are resonated with everyone within an organisation.

Furthermore, in recent years, the question about increased investments in people processes has become topical and it is argued that building intellectual capital of employees based on the shared vision and value is connected to a better degree of employee’s alignment with their organisation, and hence is crucial to any organisation’s success story.

Most organizations, in response to the needs of the global competitive environment, require their managers and executives to deliver products and services that are in line with external or environmental requirements, stakeholder expectation and to be profitable while all the time working to appease a diverse community of consumers worldwide.

Many argue that the enhanced organisation’s performance can become a reality once the leader becomes a visionary leader and cultivates the strategic intent of the organizations. And for many businesses, leadership with vision as a core component is the answer or at least the most important piece of the Jigsaw puzzle.

However, in my opinion, for a vision and corporate values to have an impact on the organisation’s performance, having a visionary leader is just a starting point. The real impact should come once the corporate vision and values are fully integrated and shared among all employees of an organisation, which forms the basis of the organisation’s culture.

Similar to a shared vision, building a values-driven culture where employees find an alignment between their personal values and the organization’s values is the key to organizational success. In my opinion, employees should be included in the development process of core corporate vision and values. This will lead to improved internal communication, building a performance-enhancing corporate culture that facilitates leadership and employee’s alignment with the strategic goals of the organization and in the end the organisation’s bottom line.

Business Set Up with International Free Zone Authority (IFZA), Fujairah

International Free Zone Authority or IFZA is a newly launched free zone located in the heart of Fujairah. Fujairah is one of the seven emirates of the United Arab Emirates and it lies in the eastern side of UAE that has a coastline solely on the Gulf of Oman.

IFZA is set to quickly become a leading investment hub within the thriving UAE economy. Offering a highly customized approach, coupled with efficient international service standards and cost-effective solutions. 

 

Number of Reasons why Set up a Company with IFZA

  1. Cost Effective

Fujairah is relatively less expensive for new businesses company compared to Dubai. In IFZA, a company can be set up with Annual License fee of as low as AED 11,500. Several advantages are also available to all types of businesses such as;

    • Full repatriation of company profits and capital.
    • 100% Foreign ownership
    • 100% exemption from corporate and income taxes.
    • No paid-up share capital requirement
    • Maximum 10 shareholders are allowed per license
  1. Fast & Easy Company Incorporation

IFZA has made it easier for business to get approval from Authorities and “NO” physical presence is required for an owner/investor nor NOC (no objection certificate) is required from their sponsor if the owner/investor is carrying the UAE resident visa.

  1. Wide and Comprehensive range of business activities and license

IFZA offers a wide and comprehensive range of business activities including Consultancy, Service, Trading and Industrial options. Holding License is also available. To be able to serve business locally and internationally.

  1. Limited Liability Company

All licenses are registered with a structure of LLC which is an independent entity whereby the company structure separates the owners and shareholders from the Company.

  1. Bank Account Opening

After obtaining a license, another struggle for investors is to set up their company’s bank account. IFZA has a list of banks where IFZA Company owners can easily open their bank accounts. Though the bank account opening will always be subject to bank compliance approval.

 

For more information on setting up a company with International Free Zone Authority, please feel free to contact our Corporate Services team at mail@affiniax.com