Board directors are often worried about how they can engage in strategic planning without imposing their will on the CEO or overstepping their authority. The lengthy planning processes and three to five-year time frames are being replaced by strategic frameworks that outline the organization’s priorities. Business plans that mix objectives for programmatic and operational goals, financial forecasts, as well as robust annual plans with precise timelines and metrics are becoming more common.
A board that is solely focused on its oversight duties must be involved in the formulation of strategy, comprehending the strategic activities taking place, and acknowledging that special situations will always require the Board to be aware. They should also come up with a strategy monitoring plan. This article provides ways to accomplish all of this while allowing the Board to be a part of strategic discussions and contribute positively to them.
Our article on how to facilitate a board-level strategic planning session is one of the most popular posts on this website. This article addresses a question which is repeatedly raised in this area where the board must decide between implementing the company’s strategy and directing its own. This is an important discussion since if the Board believes that its job is to rubber-stamp any plans put forward to it, it’s at risk of becoming an “rubber stamp” board. It is crucial to avoid this by having a clear dialogue between the board and management about the strategic issues they deem most important. The board can then help frame the issues, and management will be more open to suggestions that can refine and improve the problem-solving process.
