Creating a shadow board will enable you to engage younger workers and speed up your response to market conditions, write Jennifer Jordan and Michael Sorell for Harvard Business Review.
Between 2014 and 2017, Prada witnessed a decline in sales. In 2017, Co-CEO Patrizio Bertelli admitted the iconic brand had made a mistake. It had been too slow to realise the importance of digital media and influencers disrupting the fashion industry.
Gucci did not make the same mistake. In 2015, CEO Mario Bizzarri set up a shadow board – composed of millennials – that meets regularly with senior management, offering insights that have “served as a wakeup call for the executives”. Since 2015, Gucci’s sales have increased 136% – growth driven by its digital strategy. In the same period, Prada’s sales dropped 11.5%.