Boards in a ‘no second chances’ era

In an era of data explosion and real-time disruption, directors are expected to invest deep preparation, continuous learning, and sustained availability

- SRINATH SRIDHARAN

IFYOU FEEL the world is expecting boards to know more, decide faster, and never get anything wrong, you aren’t imagining it.

Governance today often feels like being handed responsibility for the weather or a traffic jam. You did not cause it, you cannot control it; yet, everyone wants to know why you did not predict it. This is the paradox of modern boardrooms—responsibility has expanded far beyond authority, while the tolerance for error has collapsed.

The environment in which they operate has changed faster than frameworks.

The first shift boards must confront is the changing nature of accountability. Traditionally, it was defined technically, today it has become experiential. Stakeholders read intent, judgement, tone, and behaviour as closely as outcomes. How a board responds in the first hours of a crisis often matters more than the resolution.

The second dimension reshaping governance is the institutionalisation of power. Many Indian enterprises are at an inflection point as ownership evolves through succession or institutionalisation of shareholding, professionalisation, investor influence, or market maturity. The debate is no longer about whether promoters should step back or stay involved. The deeper question is whether the organisation has built the institutional muscle to govern beyond individuals. Authority is being redistributed across generations, boards, management teams, regulators, and capital markets. Boards that fail to manage this redistribution risk becoming either ceremonial or adversarial.