The Y2K problem is the electronic equivalent of El Nino and there will be nasty surprises around the globe. - John Hamre, United States Deputy Secretary of Defense
It's hard to believe that it has been ten years since the Y2K crisis. Do you remember that? The United States spent $100 Billion on Y2K fixes. When the clock struck 12:00am on January 1, 2000
everything was ok. Maybe it's because $100 Billion was spent on fixes. Money spent to guarantee that the computer infrastructure would not fall.
Ten years ago I was working for Bridge Information Systems. Bridge was a financial market data provider and Y2K was a big deal for us. Some of the world's largest financial institutions relied on our market data and we needed to ensure our systems would be up and running. We had to be Y2K compliant.
Today is no different. Individuals and companies alike rely on computers and the internet to communicate and make informed decisions. Now, imagine for a moment if every company in the world eliminated the use of computers all together. Just for a moment, imagine it.
Absurd? I think so. Notwithstanding the personal conveniences of online banking and interacting on social media websites, how would the world's business get done? How would companies collaborate, update, and progress? We'd be back in the early 19th century, relying on paper and mail service.
Surprisingly, the boards of directors of almost all companies in the world are living in the 19th century. Computers, email and the use of the internet to manage the company's affairs are foreign to these groups of individuals. Why? They like paper books, demand paper books, and refuse any type of change.
How can they possibly be as informed as they need to be?
If I had a nickel for every Corporate Secretary who has told me that their board is adverse to change and refuses to give up their paper books; well I might be able to afford printing and shipping out 20 paper books 10 times a year.
It's time to demand more. I demand more from companies and the boards of directors.
I demand that they receive their materials and addendums in real time so they can make accurate, informed decisions. I demand that they collaborate with one another, regularly, and not once every month at the board meeting. I demand they have access to a board portal so that emergency meetings can be handled quickly, efficiently and cost-effectively. I demand that Corporate Secretary's and General Counsel's alike use a board portal to streamline the packet creation process which will free up time to focus on core governance objectives.
I demand that companies and directors alike get with times. If you're not willing to progress I will invest my money elsewhere and spend my money elsewhere.