Lead or be left behind: a chairman's perspective on social media.

• Author: Renjen, Punit
• Position: BOARD PRACTICES - Interview

DURING THE NEXT MINUTE, 100,000 tweets will appear on Twitter, 684,000 pieces of content will be shared on Facebook, 48 hours of fresh video will be uploaded on YouTube, and 3,600 photos will be shared on Instagram. Social media is the leading reason people visit the Internet--and the implications for business are profound.

But according to theso-cialskinny.com, 40 percent of companies admit to having no training on or governance of social media. By adding social media as a topic for management oversight and strategic input, boards can help their organizations capitalize on a powerful force that's here to stay.

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Social media know-how is a distinct skill set needed in the boardroom. But should such expertise be bolted on or baked in? Research indicates that less than 5 percent of directors admit to having ever used social media. Although no one skill should be a litmus test for board membership, savvy boards should seek access to social media expertise--either through knowledgeable board members or outside experts. Currently, social media proficiency is a welcome addition to any director's skill portfolio. Eventually, I believe it will become a de facto requirement.

In the meantime, boards can begin a necessary dialogue with management by asking some key and perhaps inconvenient questions:

* Do we understand social media's vast potential to transform our business?

* What is our strategy for protecting and creating value via social media?

* Do we have mandatory training for our people and a well-articulated policy for mitigating risk?

* Who owns the responsibility for social media? If shared across organizations, is there strong collaboration?

* Have we allocated the resources needed to ensure an effective social media presence?

While these issues relate to oversight and strategy, two other aspects of social media merit special consideration:

Talent: Understanding how and when to engage employees through social media is important and also different from your external strategy. A recent survey found that 78 percent of respondents would...