Chris Clark interviews leading corporate directors and governance experts for Stuart Levine & Associates, a global consulting and leadership development company. The Planet Governance® interview series features the views of corporate directors, chief executives, and governance experts on issues from board composition and succession planning to operational resilience and cybersecurity.
This well-known corporate director says resilience thinking is the essential muscle boards must build to navigate today’s interconnected risks…
Edward O. Magee, Jr. was appointed to the WD-40 Company Board of Directors in June 2022 and serves as a member of the Audit, Compensation and Finance Committees. Mr. Magee’s extensive knowledge of manufacturing, sustainability, supply chain, and logistics, as well as his wide-ranging experience building and developing global leadership teams that drive organizational culture change, enhance WD-40’s management oversight capabilities.
Mr. Magee currently serves as Vice President Strategic Operations at Belmont University as well as COO at the Thomas F. First, Jr. College of Medicine., Previously, Mr. Magee served as Executive Vice President, Operations at Fender Musical Instruments Corporation, a privately held musical instruments company. Ed also spent a decade at Harley-Davidson Motor Company in various operations, manufacturing, and transformation roles.
Prior to his executive experience, Mr. Magee served as a combat-decorated Lieutenant Colonel aviator in the U.S. Marine Corps. Mr. Magee holds a Master of Business Administration from the Fuqua School of Business at Duke University, a Master of Public Administration from George Mason University, and a Bachelor of Science in Mathematics from the U.S Naval Academy.
Ed Magee
Chris: It is a pivotal time for companies to demonstrate their commitment to accountability, effective governance, and the highest ethical standards. Let’s start with a topic that is relevant to those aspects and is currently on your mind. Why do veterans make exceptional board members?
Ed: Thank you for this question. It’s one I feel deeply connectedto, both as a U.S. Marine Corps veteran and as someone who has witnessed the transformative power of diverse board perspectives. Veterans bring an unparalleled skill set to the boardroom. Our training teaches us to thrive in uncertainty, to assess complex risks swiftly, and to lead decisively under pressure. Many of my proudest experiences as a veteran were leading Marines on deployments around the world where the stakes were as high as they come – from non-combatant evacuations in Albania to operations with the Republic of Korea (ROK) Marines near the demilitarized zone (DMZ). “Leadership scar tissue,” developed through years of real-world application, sharpens our ability to anticipate challenges, whether in a combat zone or a corporate setting.
Veterans are acutely shaped by global collaborations, driving successful outcomes that synthesize language, culture, and mission – ideal skills for today’s dynamic geopolitical operating environment. Most importantly, we bring a sense of service and accountability. These values align seamlessly with the fiduciary responsibilities of board members, fostering trust and integrity. Veterans aren’t just adaptable leaders; we’re lifelong learners, constantly evolving to meet new challenges – a critical trait for navigating today’s fast-paced business environment.
Chris: When you speak of veterans, are you referring only to Flag Officers?
(The highest-ranking officers in the Army, Air Force, and Marine Corps are referred to as general officers. In contrast, the highest-ranking officers in the Navy are known as flag officers. The term “general and flag officers,” often abbreviated as “GFO,” encompasses all officers in pay grades O-7 through O-10, which includes one-star, two-star, three-star, and four-star officers.)
Ed: Absolutely not. Lots of veterans in the space who are not GOs (a.k.a., “General Officers”) are viable board candidates. My opinion is that five to ten years of veteran experience is a sweet spot. That said, GOs are incredible when you need direct access to Senior Military/Government resources. Of course, they have deep strategic and operational capabilities, but there is a language and cadence to business that requires education and investment. NACD’s “Battlefield to Boardroom” is one of the best programs available.
Chris:What issues should be prioritized on board agendas as directors navigate their companies through the next three to five years of accelerating business disruption?
Ed: Boards today are navigating uncharted waters, and agility is more crucial than ever. Cybersecurity has emerged as both an existential threat and a strategic opportunity. In my roles across various industries, I’ve seen the devastating impact of underestimating cyber risks. For boards, embedding cybersecurity into the core of strategic discussions is non-negotiable. Developing a cyber-resilient mindset at the board, management, and employee level builds agility across the enterprise.
In the words of good friend, Leroy Williams, “Today, every director needs to be a digital director.” AI is no longer just a tool; it has become a foundational element of business strategy and governance. As highlighted in the 2024 National Association of Corporate Directors (NACD) Blue Ribbon Commission (BRC) Report, boards must engage deeply with transformative technologies like AI to drive trust and long-term value. This involves not only recognizing AI’s potential to streamline operations and unlock new business opportunities, but also navigating its inherent risks, such as ethical concerns, bias, and cybersecurity vulnerabilities.
At NACD Nashville, we emphasize that boards should move beyond superficial oversight, to embedding AI governance within their core responsibilities. The BRC Report identifies three critical imperatives for boards: Strengthening Oversight, Deepening Insight and Developing Foresight. This approach ensures that directors can guide organizations through the opportunities and disruptions AI brings.
Chris, according to the NACD’s 2024 Blue Ribbon Commission Report, boards must:
Strengthen Oversight: Align AI strategies with the organization’s purpose and values to foster trust. Directors should ensure AI applications adhere to ethical standards and meet stakeholder expectations, reinforcing the organization’s reputation as a trustworthy innovator.
Deepen Insight: Develop technology fluency across the board, equipping directors to ask meaningful questions about AI’s second and third-order effects. Joint education sessions with management can build a shared understanding of how AI reshapes the business landscape.
Develop Foresight: Collaborate with management to anticipate and adapt to AI-driven disruptions. This includes evaluating how AI intersects with other transformative technologies and ensuring that strategic investments are forward-looking and aligned with long-term goals.
To navigate these complexities, boards should engage in regular table-top exercises, integrate AI considerations into risk management frameworks as well as talent development conversations and leverage advisory committees and technical experts to close knowledge gaps.
Finally, I’d be remiss not to mention that diversity and inclusion are not optional for boards today, especially for global companies. They are strategic imperatives that drive innovation, financial performance, and resilience. Diverse boards, shaped by a forward-looking skills matrix, are better equipped to navigate complexity, anticipate risks, and capitalize on opportunities. Companies that operationalize inclusion go beyond performative measures, embedding employee-centric values deeply into governance, culture, and strategy.
Diverse leadership fosters cognitive diversity, enabling teams to approach problems from multiple perspectives and innovate more effectively. This is particularly crucial as boards grapple with rapid technological change and geopolitical uncertainty.
To integrate inclusion as a governance priority, boards must:
Clarify Governance and Accountability: Establish clear roles for overseeing inclusion initiatives. For example, boards should define which committees, such as compensation or audit – are responsible for monitoring inclusion metrics and risks. These structures ensure accountability and alignment with broader corporate values.
Integrate Inclusion into Risk and Opportunity Management: Inclusion is both a safeguard against reputational and legal risks and a driver of business opportunity. Boards should ask questions such as, “How do our inclusion strategies align with our values as well as our enterprise risk management framework?” and “Are there risks or potential business opportunities emerging from our inclusion initiatives?”
Prioritize Metrics and Transparency: Boards must move beyond anecdotal evidence to demand measurable outcomes. Key performance indicators (KPIs) might include global leadership experiences for key leaders, employee engagement trends, and turnover rates. Transparent reporting on these metrics reinforces stakeholder trust and underscores the board’s commitment to meaningful engagement.
Adopt Proactive Language and Frameworks: Inclusion requires precise, forward-looking language that reflects corporate intent and cultural resilience. Costco’s recent communications exemplify this approach. In response to a shareholder proposal challenging its Diversity, Equity, and Inclusion (DEI) initiatives, Costco’s board emphasized its commitment to an inclusive workforce that mirrors its diverse customer base. The board stated, “Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers. Our efforts around diversity, equity, and inclusion follow our code of ethics. For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected.”
By articulating commitments in terms that highlight inclusivity and alignment with corporate values, companies can effectively communicate their dedication to fostering growth and creating shareholder value. This strategic use of language not only clarifies intent but also reinforces cultural resilience within the organization.
Chris: Ed, when and where should the board be most proactive in establishing and maintaining operational resilience, specifically in the supply chain?
Ed: Supply chain resilience is an issue close to my heart. At Fender Musical Instruments where I managed global operations, I saw firsthand the risk of supply chain disruptions due to global pandemics and regulatory changes. Even ships getting stuck in the Suez Canal! Boards need to think beyond traditional metrics and consider geopolitical risks, sustainability, and crisis preparedness as they contemplate how best to service customers.
One of my takeaways from the 2024 NACD Directors Summit was the shift from global to regional supply chain networks. Regional supply chains not only enhance resilience but also help significantly reduce carbon emissions. By localizing production and distribution, companies can minimize their reliance on long-haul global shipping which is one of the largest contributors of greenhouse gases. In fact, global supply chain shipping ranks as the second-largest producer of carbon emissions, largely due to the energy-intensive nature of transporting goods across oceans and continents. Shifting to regional networks reduces travel distances, helping companies meet sustainability goals while supporting the environment.
Resilience thinking is the essential muscle boards must build to navigate today’s interconnected risks, particularly in supply chain, cybersecurity, and AI. Resilience is not just about responding to crises but about anticipating disruptions and embedding adaptability into the organization’s core strategy – especially its employees. Boards should challenge management to think holistically, identifying vulnerabilities across these domains and ensuring the organization can pivot swiftly when faced with unforeseen challenges. Whether it’s fortifying supply chain networks against geopolitical shifts, integrating robust cybersecurity measures to protect critical assets, or adopting ethical and scalable AI practices, resilience enables organizations to not only weather disruptions, but emerge stronger and more competitive. This mindset must underpin governance strategies to safeguard long-term value and stakeholder trust.
Chris: In your opinion, are corporate boards effectively integrating cybersecurity into emerging tech investment strategies, including the AI-cybersecurity nexus?
Ed: Highly regulated industries such as healthcare and finance should be at the forefront, embedding robust cybersecurity frameworks into their investment strategies and leveraging AI innovations to enhance both security and productivity. However, many in these industries are playing catch-up, grappling with how to integrate the rapid evolution of intangible assets like people, innovation, and culture with emerging technologies that require a cyber resilient mindset. Intangible assets, now the primary drivers of enterprise value, are driving radical industry disruption, as companies navigate the risks, required investments and people strategies that enable sustainable value creation. Boards must not only understand this shift but actively challenge management on how emerging technology tools are being used to protect intellectual property and promote business continuity all while enhancing creativity, productivity, and innovation.
Other key considerations include the following:
Enhancing Digital and Cyber Literacy: Directors need to actively engage in education to build fluency in cybersecurity, AI, and related technologies. This is not optional in an era where digital transformation is reshaping the business landscape.
Aligning Cybersecurity with Strategic Investments: Cybersecurity should not be treated as a siloed function. Instead, it must be embedded into every decision involving emerging technologies, ensuring alignment with broader strategic goals.
Ensuring Oversight and Accountability: Boards should designate specific committees or roles to oversee cybersecurity initiatives, including the integration of AI and other emerging tech. This ensures focused attention and accountability at the highest level of governance.
The accelerating speed of disruption highlights the urgency of this shift. With the average tenure of companies on the S&P 500 shrinking from 61 years in the 1950s to less than 18 years today, organizations cannot afford to view cybersecurity and AI as secondary concerns. Boards that embrace the principle of every director being a “digital director” will be better equipped to safeguard their organizations, while seizing the opportunities that emerging technologies provide.
NACD Nashville is dedicated to equipping board leaders with the insights and tools they need to meet these challenges head-on. As the chapter’s Advisory Board Chair, I encourage your Planet Governance audience of directors, governance luminaries, and chief executives to follow us on LinkedIn (https://nashville.nacdonline.org/ for front-line governance insights.
These views and opinions expressed here are solely those of Ed Magee and do not reflect the official policy or position of WD-40, NACD or Belmont University.
Chris: Ed, thank you for your insights and dedication to exemplary governance.
Chris Clark joined Stuart Levine & Associates as a Senior Consultant after distinguished tenures at Texas Monthly – The National Magazine of Texas, Capital Cities/ABC, Forbes, and the National Association of Corporate Directors (“NACD”).
He is recognized for his significant role in creating NACD’s “The Power of Difference,” “The Leading Minds of Compensation,” and “The Leading Minds of Governance” Conference Series, “The Directorship 100,” and NACD Private Company Directorship, as well as his contributions to NACD’s “Battlefield to Boardroom” program.
Of final note, Chris currently specializes in corporate governance, including board assessments, brand evaluations, and strategic communication audits. Let Stuart Levine & Associates help you conduct a board assessment, enhance your strategic planning, or provide CEO and C-Suite consultation by emailing cclark@stuartlevine.com.
