If the board sets the strategy or the board is waiting for management to establish it the board must be clear about what its role is in strategic planning. This is because the performance of the board will be impacted by how the business manages their resources.
Boards should define what mean by strategy and decide whether they would like to be involved as co-creators, supervisors or as supporters. It is crucial for the board to be aware that these roles will undoubtedly change as context changes. In a crisis, for instance, focusing only on customer satisfaction may not be the best option if employee safety and reputation are at stake.
The board should also seek to enhance the value of a strategic plan by challenging the status that is in place. This is where the board can really create a difference and show its leadership skills. It’s also important for the board to think about the potential risks of the strategies that management has presented and to initiate discussions around these issues.
It is useful to have access to an online platform that allows for the board and management to work together securely during the strategic planning phase. A good portal for boards like BoardPro can assist. This will enable boards to move past the traditional ‘death of PowerPoint that is commonplace in the majority of board meetings and will help them create more effective strategy plans.