Corporate boards are grabbling with expanding demands, expectations and responsibilities. Many have increased their operational involvement and are engaging with employees from deeper within their company. In the UK, boards also appear less concerned about cybersecurity than their EU counterparts as attention turns to emerging technology and AI, according to a new report, Board Monitor, compiled by Heidrick & Struggles, the Chicago-based international executive search and management consulting company.

“The relationship between the board and management, and particularly the chair and the CEO is critical to driving a high performing organisation,” says Alice Breeden, Regional Practice Managing Partner, CEO & Board of Directors Practice, Europe and Africa, Heidrick & Struggles.

“As the pressures, expectations and responsibilities of board members continue to expand, it is easy to see how this pressure is then put back on executives to provide as much detail and access as the board feel is necessary to govern the business. With this constant balancing act adding stress to both sides, the need for a stronger pulse on the business without overreaching will continue to be a challenge.”

One of the most difficult areas to navigate is the traditional line between oversight and strategic direction, and day-to-day management.

Globally, most respondents report that board members are more operationally involved, often frequently. The figures from UK respondents are similar, at 22% and 49% respectively. Almost three-quarters of respondents in the UK state that boards have increased their operational involvement overall.

The reasons for increased operational involvement vary from a desire to know more about operations (43%), to the CEO requiring assistance from the board due to demands on their bandwidth (21%). However, most concerning is the perception among 22% of respondents that the board does not fully trust the executive team to get things done.

In addition, UK respondents – far more often than others – believe the board should engage with groups of employees. This reflects the UK corporate governance code obligation that boards have formal structures in place for board/employee engagement.

The survey also asked directors and CEOs to stipulate which stakeholders have most influence over board decision-making. Overall, influence has grown among the broader workforce (49%), regulators (49%), the CEO and leadership team (47%) and consumers (43%).

The influence of stockholders has not enjoyed the same kind of growth in recent years. Just 22% of members report an increased influence among mainstream investors, dropping to 13% among “activist investors”.

It means changes in the ways boards approach their work do not come first from the shareholders they serve, but from the operational, commercial, and regulatory contributors to the business.

“The pressure on boards continues to increase and comes from multiple sources including investors, regulators, government, media and wider society. The spread of issues also continues to proliferate, ranging from environmental, social and governance to geopolitics, AI and cybersecurity. Combined, the challenges and expectations on boards are ultimately greater than ever. Board directors now need breadth of experience, as well as a depth of expertise in particular topics, combined with agility and a willingness to learn,” says Kit Bingham, Partner and Head of UK Board Practice in Heidrick & Struggles,

As new influences and concerns come to the fore, Board Monitor also explored a shift in how boards are spending their time and where they are applying their attention. Most of the board’s time is spent on traditional board oversight and strategic responsibilities. But examining global risks (10%), shareholder and employee-driven topics (10%), the opportunities and risks of new technology (9%) and crisis management (6%) are also factors.

Of all those tasks, boards have increased time spent in emerging technology and AI. On the other hand, the amount of time boards spend on cyber risk has fallen with just 55% of UK boards showing an increased interest, significantly lower than that of other regions.

Other areas in which UK boards have increased their attention include sustainability (61%), geopolitical volatility (61%), financial performance and risk (56%) and DEI (51%). Interestingly, UK boards’ growth around diversity, equality, inclusion and wellbeing is significantly ahead of the global figure, where just 42% of boards have increased their focus.

The Board Monitor report also found new board approaches to uncertainty and risk, notably a growing willingness to draw on contributions from external experts.

UK board members are spending more time addressing risk than directors in almost any other region, including time spent understanding and defining risks. All these efforts add to the overall burden on board members that so many in the United Kingdom are feeling.