Board directors are often concerned about how they can participate in strategic planning without micromanaging the CEO or taking over their responsibilities. The long planning processes and three to five-year time frames are being replaced by strategic frameworks that set out the priorities of the organization. Business plans that mix boardmeetingsolution.org/strategic-planning-and-the-role-of-the-board-management/ operational and programmatic goals with financial forecasts, and robust annual plans with precise metrics and timelines are also now more frequent.
But a board focused on its oversight responsibilities must to be involved in the formulation of strategy, and assessing the strategic activities being conducted, and recognizing that there will always be specific situations that require a lot of attention from the Board and developing an action plan to monitor the strategy. This article outlines how to do all of that in a way that permits the Board to be a part of strategic discussions and effectively contribute to them, avoiding the mistakes that can create a problem with strategic management for the entire business.
Our article on conducting an executive-level strategic planning session is among the most popular posts on this website. The discussion addresses a problem that is raised repeatedly in this area where the board must decide between implementing the company’s strategy and directing its own strategy. This is a crucial discussion, because if the Board believes that its responsibility is to rubber-stamp every plan put forward to it, it’s at risk of becoming a “rubber stamp” board. To avoid this, it’s a good idea to have an open discussion between management and the board on the most important strategic issues they believe are the most important. This will enable the board to assist in framing these issues, and for management to be open to suggestions from the board that could hones and refine the problem framing.
