McKinsey research showed that 44% of directors said their boards simply reviewed and approved management’s proposed strategies. Most boards have about six to eight meetings a year and are often hard pressed to get beyond compliance-related topics to secure the breathing space needed for developing strategy. When McKinsey surveyed board members to learn where they’d most like to spend additional time, two out of three picked strategy.
There’s often a mismatch between the time horizons of board members (longer) and of top executives (shorter) and that lack of alignment can diminish a board’s ability to engage in well-informed give-and-take about strategic trade-offs. Compounding these challenges is the increased economic volatility prompting many companies to rethink their strategic rhythm, so that it becomes less calendar driven and formulaic and more a journey involving frequent and regular dialogue among a broader group of executives.
To remain relevant, boards must join management on this journey, and management in turn must bring the board along. Every board should be spending at least one day every year setting, reviewing and where necessary modifying strategy. Black Bull Performance Group provides an independent and objective Strategy Day facilitation service.
RRP From $1,650 (AUD) for one day
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