The Role of the Board of Directors in the Strategy Process

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The Role of the Board of Directors in the Strategy Process
Karl Christensen, Member
If strategy is to guide the organization, then it certainly must be guided by what by law, if not actual fact, is the organization´s key governing body, the Board of Directors (BOD).
1. To what extent should the BOD participate in setting strategy?
2. How can this participation process be best arranged, keeping the BOD discussions, review and decision making concise and strategically focused?

Board of Directors Role in Strategy
Alan Kennedy
Boards in North America have the legal responsibility to approve and monitor the implementation of the strategic plan. In North America, Boards are usually part of the consultation process for strategy development, but they are not typically involved in the development of strategy.

Alignment and Implementation
Monica Martinez, Member
Not only the BOD should participate in setting the strategy, but also make sure that they align the business units with the strategy and also with the desire culture. It is key that the strategy consider all relevant aspects: culture, values, mission, etc.

Role of Executive in Strategy
Jaap de Jonge, Editor
See also the discussion: Should Executives Become More Strategic?. Lets keep this discussion focused specifically on the role of the board of directors. Thank you.

Role of Directors in Strategy
Andrew Hollo, Member
I advise boards that their role is as guardians of the vision, so they should be able to contribute:
1. FORESIGHT: Look to horizon and have a clear, but critical, view of the major opportunities and potential for the organisation.
2. INSIGHT: Deeply understand the core customers and their problems, and what would constitute success for them.
3. VIGILANCE: Know what constitutes the organisation's success, how it's measured, and ways of tracking this, both positive outcomes and 'canaries in coal mines'
4. CAPABILITY: Oversee the CEO's plans to ensure plans can be executed (capital, people, technology, infrastructure etc).
More on this in the next post, as I've run out of words!


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