According to a survey from Women's Wear Daily and the executive research firm, Berglass+Associates, only 22 percent of retail execs believe their board of directors today are very effective. In fact, 60 percent believe the makeup of the board (including experience and skillsets) will change by 2020, with 72 percent expecting the board to add leaders with technology backgrounds and 64 percent expecting to add leaders with global expertise.
The survey likewise found that digital/technology and global expertise — along with the old standby, merchandise acumen — were the top three most important skillsets that will be required of successful CEOs in 2020.
"There are changes happening so fast in our industry that the present feels like the future," said Les Berglass, founder and CEO of Berglass+Associates, in a statement. "The need for leadership talent that aligns with an increasingly savvy consumer will drive a virtual redefinition of both the C-suite and boardroom."
Other findings in the study:
Chief Customer Officer (CCO) enters C-suite: While only five percent of the companies surveyed have a CCO today, nearly 25 percent expect to fill this role by 2020.
Outside leadership: Nearly 70 percent of respondents believe that C-suite leadership coming from outside of the retail industry will increase by 2020, specifically from technology (57 percent), pure-play e-retailers (51 percent), and consumer packaged goods (43 percent).
Product innovation, consumer engagement and talent acquisition remain paramount: Retail's core performance areas are expected to remain the same. Product innovation (98 percent), consumer engagement (98 percent), talent acquisition/retention (98 percent), and providing consistent consumer experiences across touchpoints (98 percent) were the top four areas of focus in both 2014 and 2020.
Berglass+Associates and Women's Wear Daily conducted an online survey in July and August 2014 of 127 U.S. business leaders involved in the retail industry (including blended wholesaler/retailers, physical store operators, pure-play e-commerce, and investment community professionals) primarily focused on the apparel, accessories, footwear, beauty and consumer goods sectors.