One of the key responsibilities boards of directors have is approving corporate strategy and monitoring management’s execution of strategic plans. But it can be challenging for boards to provide strategic guidance, because the development of strategy is, by its nature, largely in the hands of management. Management proposes strategic initiatives and overall direction based on their assessment of business opportunities informed by their understanding of capabilities and risks gleaned from day-to- day operations of the business in the competitive environment.
This article was published in Governance Challenges 2020: Strengthening the Board’s Role in Strategy Development and Execution, a publication of the National Association of Corporate Directors and its Strategic Content Partners.