How Strategic Is Your Board?

In a world where business models are evolving rapidly and new competitors can emerge almost overnight, strategic thinking, especially at the top of the company, is more important than ever to a company's survival. Unfortunately, boards of directors have no clear model to follow when it comes to developing the strategic role that is best suited to the company they oversee. At one extreme, the board does little more than rubber-stamp the CEO's decisions, while at the other, the board constantly second-guesses the executive team. Neither extreme adds value. In today's fast-moving world, the business context can quickly shift from simple to complicated and from complicated to complex and even chaotic. In general, boards tend to get bogged down with issues that are complex but often nonstrategic (such as financial filings and operations). When determining their role in strategy, board members should take into account the context in which they believe the organization operates.