Advisory Boards in Modern Governance: Two World Perspectives

Travel is core to my existence today, offering the most rewarding opportunity to listen, observe and learn “on the ground” alongside wonderful professionals across diverse countries and cultures. Whilst leading the Global Research Council and the Faculty delivering the Certified Chair Executive Program and other best practice programs, I often reflect on how modern governance will continue to evolve with the influence of culture and different regulatory frameworks. I am deeply curious about how modern governance is being challenged in different ways: over- and underregulation.

World 1 – Overregulation

Much to the frustration of many Directors, mature governance markets including the United Kingdom, Canada and Australia see strong overregulation; once we write rules, we can never have enough. This places constraint on governance boards where risk and compliance flood the agenda and focus, leading to a conservative mindset in the way decisions are made. A common complaint of Directors in these environments is that they are bogged down in risk mitigation and very little of the agenda allows for expansive conversations about strategy, planning and unscripted discussion.

World 2  – Underregulation

Emerging governance markets where regulations and governance are still forming include Saudi Arabia, Malaysia and Indonesia. This places constraint on governance boards where new regulations and regulators emerge. There is also a high demand for quality education for the next generation of board members — at the Advisory Board Centre we see this firsthand through a significant uptick in interest in advisory best practice and in our Certified Chair™ Executive Programs in the Middle East. Conversations focus on charting a course, what’s next, options and opportunities.

Overregulation places constraint on governance boards where risk and compliance flood the agenda and focus, leading to a conservative mindset

Where Two Worlds Meet

I’m personally curious about how and when these two worlds will meet. I can see trends that are set to impact both sides of the equation and am fascinated by what this means for modern governance. Key trends include AI and technology and its rapid development, and the rise of an integrated governance system approach for better governance.

AI and Technology

Dynamic reporting and increased data integrity will enable information and data transfer to streamline reportable functions in real time, presenting an opportunity to reduce the current audit burden. But the two worlds may have a different path to tread: underregulated environments may be better positioned to build smart, tech-driven governance systems from the ground up, while regulated environments may face the complexity of having to deconstruct and deregulate existing frameworks.

Integrated Governance System

Managing relationships within a governance system can be complex, given the ecosystem of the board, executives, committees, advisory boards and stakeholder management structures. It’s critical to maintain a clear distinction between the governance board’s decision-making role, the executive function, and the ongoing communication that keeps leaders at all levels informed. When done well, the culture of good governance extends from the boardroom table to becoming everyone’s responsibility. Underregulated environments may find this easier, where a governance system approach of informed leadership is built from the beginning. The challenge will be for educators to take a modern approach and not replicate systems of governance that will no longer be relevant.

How these two worlds learn from each other may well define the next era of modern governance.

Learn More

Integrated governance systems harness the distinct yet complementary roles of governance and advisory boards, meeting the organisation’s need for elevated thinking while providing deep diligence that is both defensible and accountable. They have also been the catalyst for the maturing of good governance of advisory boards with a clearly defined and measured business case. Well beyond the singular view of a board, integrated governance systems are fast becoming the norm. Proactive directors are strengthening their approach to governance in response to the “governance dilemma” relating to the shrinking size of governance boards with a larger mandate and the expanding function of governance. Learn more via our 2025-2027 State of the Market Report.