The Board Diamond: The Blueprint for Future-Ready Governance

Boards today operate in an environment that feels perpetually unsettled. Digital acceleration, AI, geopolitical friction, the emergence of new ecosystems, and abrupt shifts in social expectations have converged to create a landscape in which corporate direction can change overnight. In this context, governance must evolve from periodic oversight to an active partnership in shaping the future. It requires directors to engage with emerging signals, participate in co-creating strategic pathways, and help the organisation maintain clarity of direction while preparing them for the discontinuities of the future.

In our research, where we interviewed more than one hundred board chairs, directors, CEOs, and investors across major markets, we found that boards that consistently delivered value were those that had already moved beyond traditional models of supervision. They had adopted a broader interpretation of their responsibilities, one that encompassed not only oversight of the present but also preparation for the next strategic horizon.

To capture this shift, we developed the Board Diamond, a framework built around five interdependent building blocks: purpose and roles, people, structures and processes, board leadership, and evaluation and development. Together, these dimensions form a blueprint for governing with relevance today while ensuring the board remains fit for tomorrow.

The Expanding Mandate of Modern Governance 

In many organizations, the days when boards could confine themselves to compliance and performance monitoring are long gone. Boards are now asked to provide strategic counsel on issues ranging from AI adoption and cybersecurity to sustainability, talent transitions, and the reshaping of entire business models. The complexity is such that boards must frequently recalibrate their role depending on circumstances: in crisis, they may need to lean in and shape adaptation; in stability, they may guide long-term positioning and sharpen strategic focus.

A clear illustration comes from ASM International, where Pauline Van der Meer Mohr became chair of the supervisory board in 2022. ASM had been growing strongly and operating at the leading edge of semiconductor technology, while also finding itself increasingly exposed to political tensions between the United States and China. Reflecting on the board’s role in such an environment, Pauline noted that “one of the biggest challenges of any board is to connect the long-term perspective we should take with the short-term questions the company faces today.” Her observation captures a central tension modern boards must manage as they navigate complex and fast-changing environments.

People: Building a Board with the Right Minds, Not Just the Right CVs 

Because governance is carried out by people, not systems, the effectiveness of any board is ultimately bounded by the quality of its members’ thinking, character and judgment. Yet many boards still fall into a predictable trap: selecting directors from a narrow circle of familiar faces. Robert Nicholson, a director in multiple Australian corporations whom we interviewed, described how many boards still operate within narrow networks. As he put it, boards “have been a bit clubby,” with people tending to choose individuals they already know or believe will think in similar ways, and often hesitating to take a risk on someone outside their familiar circles. The result, he noted, is a narrower skill set than many boards require and a corresponding lack of diversity of thought.

What distinguishes the strongest boards is not simply technical expertise, though this remains essential, but the combination of expertise and mindset. Directors must bring curiosity, independence, global awareness, emotional steadiness, and the courage to challenge assumptions without derailing collaboration. In contexts where complexity is rising and decision-making requires nuanced judgments rather than formulaic solutions, these human qualities often matter as much as domain knowledge.

Structures and Processes: Turning a Collection of Individuals into a Cohesive Governing Body 

Even when highly qualified directors are appointed, a board’s ability to create value depends on the structures within which those individuals operate. Processes that once served companies well, quarterly meetings anchored in thick binders of backward-looking reports, are insufficient in an environment where the pace of change is immediate and often unpredictable. Boards need more agile rhythms, faster information flows, deeper engagement with emerging topics, and a deliberate orientation toward the future.

Equally important is how directors work together. Many interviewees admitted that boards, by their nature, do not automatically function as teams: they meet infrequently, they come from diverse backgrounds, and they often lack the accumulated trust that develops in executive teams. Yet modern governance increasingly requires boards to behave like cohesive units rather than loosely connected individuals.

The chair of one of Europe’s largest corporations captured this beautifully when he explained that building a real board team “takes time,” especially when meetings occur only every month or two. For that reason, he insisted that informal interactions, even something as simple as a dinner the night before, were essential to create the cohesion needed for genuine debate, joint problem-solving and a shared sense of responsibility for outcomes. His point underscores a truth often overlooked: strong governance is as much about human connection as it is about structure.

For boards to add strategic value, they must establish processes that encourage forward-looking discussions, timely access to emerging signals, and the kind of open environment in which directors can challenge, question and refine each other’s thinking without ego or defensiveness.

Board Leadership: The Chair as Culture-Shaper and Integrator 

In this evolving governance landscape, the board chair plays a more central role than ever. The chair sets the tone for how directors interact, approach complexity, assess the CEO’s decisions, and how rigorously they examine the organization’s long-term positioning. Chairs must synthesize vast amounts of information, maintain composure under uncertainty, balance support for the CEO with independence, and cultivate a climate where diverse perspectives can flourish without fracturing the board.

The chair’s imprint often determines whether the board functions as a strategic partner or remains trapped in outdated supervisory habits. Given the demands of the role, it is unsurprising that the most effective chairs combine analytical strength with emotional intelligence, humility, and an instinct for when to step forward and when to step back.

Evaluation and Development: The Often-Missing Engine for Board Improvement 

Despite the rising importance of strong governance, many boards still underinvest in their own development. Several directors we interviewed described board evaluation as a “missed opportunity,” often treated as a box-ticking exercise rather than a powerful instrument for learning and renewal. Stefan Nöken, a director at Germany-based Vaillant and Vorwerk, stressed that boards miss critical opportunities when evaluation is weak. As he explained, insufficient evaluation affects team dynamics, limits the board’s own development, and ultimately reduces its impact on the company. In his words, continuous improvement is hampered by the fact that evaluation is not taken seriously and not connected to board development.’

This critique goes to the heart of the challenge. Without honest feedback, boards cannot adjust composition, refine processes or identify blind spots. Yet evaluation is only one half of the equation. Development, investing in the growth of directors and in the board’s collective capabilities, is equally essential.

Luka Mucic, Director at Heidelberg Materials captured this in a memorable line: “It’s not possible to simply set up a committee for five years and hope competence develops automatically.” Boards, he argued, must actively cultivate expertise, especially in fast-moving areas where expectations evolve quickly and the knowledge required to make sound decisions cannot be left to passive accumulation.

Whether through targeted training, scenario sessions, external expert input or structured reflection, board development should be as continuous and intentional as the development of the executive team.

The Path Forward: A Blueprint for Boards That Lead Rather Than React 

The Board Diamond gives directors a clear, practical blueprint for future-ready governance, showing that real effectiveness comes from aligning purpose, people, processes, leadership and development into one coherent system rather than treating them as isolated fixes. Boards that embrace this discipline stand out: they read the world earlier, act with greater conviction, and provide the kind of leadership that steady hands at the top must deliver when the future refuses to sit still.

Written by Marianna Zangrillo, D.Sc. (Tech.)